(SS) Maseda v. Commissioner of Social Security

Filing 16

ORDER GRANTING IN PART 15 Plaintiff's Motion for Substitution, signed by Magistrate Judge Jennifer L. Thurston on 06/02/2021. Nicole Schmidt added. (Maldonado, C)

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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF CALIFORNIA

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ANNETTE SUE MASEDA,
Plaintiff,

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v.

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ANDREW SAUL,
Commissioner of Social Security,

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Defendant.
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Case No.: 1:20-cv-01657 JLT
ORDER GRANTING IN PART PLAINTIFF’S
MOTION FOR SUBSTITUTION
(Doc. 15)

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Plaintiff Annette Sue Maseda filed this action for judicial review of an administrative decision

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denying her application for Social Security benefits. (See Doc. 1.) Nicole Schmidt seeks to substitute

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as plaintiff pursuant to Rule 25 of the Federal Rules of Civil Procedure. (Doc. 15.) For the following

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reasons, Plaintiff’s motion is GRANTED in part.

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I.

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Background
Plaintiff initiated this action by filing a complaint on November 20, 2020. (Doc. 1.) Plaintiff

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asserted she is disabled, and the findings by the Commissioner to deny her applications for benefits

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were “not supported by substantial evidence and are contrary to law and regulation.” (Id. at 2.)

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Plaintiff seeks to have the Court reverse the administrative decision and find she is entitled to benefits,

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or remand the action for further proceedings. (Id.)

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Plaintiff died on March 24, 2021, while this action was pending. (Doc. 15 at 1.) Her daughter,
Nicole Schmidt, now seeks substitution as the plaintiff. (Id. at 1-2.)
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II.

Legal Standard
Rule 25(a)(1) governs the issue of substitution, and provides that: “If a party dies and the

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claim is not extinguished, the court may order substitution of the proper party. A motion for

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substitution may be made by any party or by the decedent's successor or representative. If the motion

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is not made within 90 days after service of a statement noting the death, the action by or against the

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decedent must be dismissed.” Fed.R.Civ.P. 25(a)(1). Therefore, in deciding a motion to substitute

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under Rule 25(a)(1), the Court must consider whether: (1) the motion is timely, (2) the claims pled are

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extinguished, and (3) the person being substituted is a proper party. See id. If the requirements of

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Rule 25(a) (1) are met, “[t]he substituted party steps into the same position as [the] original party.”

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Hilao v. Estate of Marcos, 103 F.3d 762, 766 (9th Cir. 1996). “Rule 25(a) should be applied flexibly

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and liberally to permit substitution of the party or parties who … would adequately represent [the

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decedent's] interests.” In re Baycol Prods. Litig., 616 F.3d 778, 789 (8th Cir. 2010).

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III.

Discussion and Analysis

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A.

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The motion now pending before the Court was filed in a timely manner because Plaintiff filed

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Timeliness

the quest for substitution within 90 days of the death of Annette Sue Maseda.

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B.

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Substitution is limited to claims that are not extinguished by death of a party. The Regulations

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also provide that certain survivors may be entitled to posthumous payments of benefits. See 42 U.S.C,

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§ 1383(b)(1)(A); 20 C.F.R. § 416.542(b). Because the Social Security Act expressly provides for

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benefits to be paid to survivors in the event she died before collecting benefits owed, Plaintiff’s claims

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were not necessarily extinguished upon her death.

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Whether the claims are extinguished

Notably, the complaint indicates that Plaintiff applied for both disability insurance benefits and

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supplemental security income. (Doc. 1 at 1, ¶1.) Ms. Schmidt does not address the distinction in

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benefits in filing the motion now before the Court, or explain whether she seeks substitution for both

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applications. See Timothy F. v. Saul, 2020 U.S. Dist. LEXIS 251827 (E.D. Wash. Nov. 5, 2020)

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(addressing substitution for the DIB claim only, and declining to address the decedent’s SSI claim).

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However, supplemental security income payments may only be paid to an eligible surviving spouse,
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and not to an estate. See 20 C.F.R. § 416.542(b). Thus, Plaintiff’s claim for SSI payments appear to be

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extinguished, while the disability insurance benefits remain.
Designation of a “proper party”

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C.

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Rule 25(a)(1) requires evidence that Nicole Schmidt is a successor in interest or legal

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representative of Annette Sue Maseda. See Hilao, 103 F.3d at 766 (applying Rule 25(a)(1) to the legal

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representatives of the deceased’s estate). The Ninth Circuit explained: “It is plain ... that Rule 25(a)(1)

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applies only to the substitution of legal representatives. That is not only clear from its history; it is

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implicit in the wording of the provision and in the cases construing it.” Mallonee v. Fahey, 200 F.2d

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918, 919 (9th Cir. 1952) (footnote omitted).
Plaintiff reports that “Annette Sue Maseda was unmarried at the time of her death, and Nicole

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Schmidt is [the] Child of Annette Sue Maseda.” (Doc. 15 at 1, emphasis omitted.) Ms. Schmidt has

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provided both her birth certificate and the “Certificate of Death” for her mother to support these

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assertions. (Doc. 15-2 at 1; Doc. 15-2 at 1.) In addition, Ms. Schmidt reports that she was an only

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child, and it does not appear another person has a superior right to Ms. Schmidt. (Doc. 15-3 at 2.)

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Because disability insurance benefits may be paid to a child of the deceased applicant, the Court finds

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Ms. Schmidt is a proper party for the Title II claim. See 20 C.F.R. § 404.503(b)(2). On the other

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hand, supplemental security income payments may only be paid to a surviving spouse, and Ms.

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Schmidt is not a proper party for the Title XVI claim. See Timothy F., 2020 U.S. Dist. LEXIS 251827

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at* 5-6; see also 20 C.F.R. § 416.542(b) (indicating SSI payments may only be made to an eligible

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surviving spouse and not to the estate of a recipient).

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IV.

Conclusion and Order

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Ms. Schmidt has presented evidence that establishes that the requirements of Rule 25(a) (1) are

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satisfied as to Plaintiff’s claim for disability insurance benefits, but does not carry this burden with the

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application for supplemental security income. Accordingly, the Court ORDERS:

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1.

The motion to substitute Nicole Schmidt as Plaintiff (Doc. 15) is GRANTED in part;

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2.

Annette Sue Maseda shall remain the named plaintiff with respect to the claim for
supplemental security income;

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3.

Nicole Schmidt shall be substituted for the disability insurance claim only; and
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4.

The Clerk of Court is direct to add Nicole Schmidt as a party-plaintiff and to reflect
Jonathan Omar Pena as counsel of record of Ms. Schmidt.

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IT IS SO ORDERED.
Dated:

June 2, 2021

_ /s/ Jennifer L. Thurston
CHIEF UNITED STATES MAGISTRATE JUDGE

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