Gary L. QUINLIVAN, Plaintiff-Appellant, v. Louis W. SULLIVAN, Secretary of Health and Human Services, Defendant-Appellee

This appeal raises a question of statutory interpretation involving the waiver of over-payments provisions of the Social Security Act. Gary Quinlivan appeals the district court’s decision denying his request for waiver of an overpayment of disability benefits he received from the Social Security Administration (SSA). He argues that the Secretary's interpretation of a statutory phrase, “equity and good conscience,” is unreasonably narrow and that denial of waiver is inconsistent with a proper interpretation of that phrase. We agree and reverse.

BACKGROUND

Quinlivan was incarcerated from 1963 to 1985 for a felony conviction. He received Social Security Title II benefits while in prison after being diagnosed as schizophrenic.

The Social Security Act was amended in 1980 to prohibit payment of disability benefits to incarcerated felons. Between 1980 and 1982, disability benefits continued to be paid to Quinlivan, resulting in a net overpayment of $4,601.40. He was unaware of the change in the law and was without fault in receiving overpayments.

In early 1982, Quinlivan became aware that there might be a problem with his payments after reading a booklet published by SSA. He…