Richard FANNING, Plaintiff-Appellant, v. Otis R. BOWEN, Secretary of Health and Human Services, Defendant-Appellee

Richard Fanning appeals the district court’s judgment affirming the decision by the Secretary of Health and Human Services (“Secretary”) that he was not entitled to Supplemental Security Income (“SSI”) benefits under Title XVI of the Social Security Act, 42 U.S.C. § 1381 et seq. We reverse and remand.

FACTS

Fanning applied for SSI benefits on November 22, 1982. His application was denied initially and upon reconsideration. Having timely requested a hearing, Fanning appeared and testified before an Administrative Law Judge (“ALJ”) on November 8, 1983.

Before the AU, Fanning asserted disability due to knee problems and mental impairment. Disability is determined under a five-step sequential evaluation process established by 20 C.F.R. § 416.920 (1986). The AU found that Fanning satisfied the first two steps, because he was unemployed and suffered from a severe mental impairment. See id. at §§ 416.-920(b) and 416.920(c). However, he concluded that Fanning was not disabled, because he did not suffer from an impairment listed in 20 C.F.R. Part 404, Subpart P, Appendix 1, and could still perform his past relevant work. See id. at §§ 416.920(d) and 416.920(e). Accordingly, he denied…