Leonard ALBALOS, Plaintiff-Appellant, v. Louis S. SULLIVAN, M.D., Secretary of Health and Human Services, Defendant-Appellee

ORDER

The memorandum disposition filed April 24, 1990, is redesignated as a per curiam opinion.

OPINION

Plaintiff, Leonard Albalos, appeals the district court’s judgment for the Secretary of Health and Human Services (“Secretary”). The Secretary refused to waive a deduction overpayment because Albalos failed to show he was “without fault” in failing to file excess earnings reports. The Secretary also imposed a penalty upon Al-balos for these failures. We reverse.

FACTS

Leonard Albalos was born in the Philippines in 1909 and speaks a Philippine dialect as his native language. He completed six grades of formal education in the Philippines before immigrating to the United States. For fifty-seven years, he has performed various unskilled jobs.

In 1972, Albalos applied for Social Security benefits. Albalos was required to file annual earnings reports if he received earnings in excess of an exempt amount. 42 U.S.C. § 403 (b). If these earnings create an overpayment of benefits, the Secretary is to make deductions from monthly benefits. 42 U.S.C. § 403 (b).

In 1978, Albalos was advised of his failure to file a report for 1976. He suffered a deduction overpayment after failing to…