Butts v. Barnhart, No. 03-6115, __F3d.__ (2nd Cir. Nov. 2, 2004)

The Second Circuit, in an interesting decision by Circuit Judge Ralph K. Winter, Jr., holds that abuse of discretion is the proper standard of review when reviewing a District Court's decision whether to remand for further proceedings or remand for calculation of benefits. The Court also held that because the decision to remand is discretionary "the principles calling for some evaluation of relative hardships that govern a discretionary selection of alternative remedies apply." Therefore, the District Court must evaluate the hardship that further delay creates for the claimant and consider imposing a time limit on the subsequent proceedings:

"In this case, the past delay is of such magnitude -- years -- that a time limit is imperative. We therefore instruct the district court to direct that further proceedings before an ALJ be completed within 60 days of the issuance of the district court’s order and, if that decision is a denial of benefits, a final decision of the Commissioner be rendered within 60 days of Butts' appeal from the ALJ’s decision. The district court’s order should provide that, if these deadlines are not observed, a calculation of benefits owed Butts must be made immediately."

The Second joins the Seventh, Eighth and Ninth Circuits in finding that an abuse of discretion standard applies: See Nelson v. Apfel, 210 F.3d 799, 802 (7th Cir. 2000); Harman v. Apfel, 211 F.3d 1172, 1173 (9th Cir. 2000); Higgins v. Apfel, 222 F.3d 504, 505 (8th Cir. 2000). The First Circuit reviews such decisions de novo, Seavey v. Barnhart, 276 F.3d 1, 9 (1st Cir. 2001).