PRECEDENTIAL
UNITED STATES COURT OF APPEALS
FOR THE THIRD CIRCUIT
____________
No. 10-2027
____________
KAREN K. CAPATO, o/b/o B.N.C., K.N.C.,
Appellant
v.
COMMISSIONER OF SOCIAL SECURITY
____________
APPEAL FROM THE UNITED STATES DISTRICT
COURT
FOR THE DISTRICT OF NEW JERSEY
(D.C. Civil No. 08-cv-05405)
District Judge: Honorable Dennis M. Cavanaugh
____________
Argued: November 15, 2010
____________
Before: BARRY, CHAGARES and VANASKIE, Circuit
Judges
(Opinion Filed: January 4, 2011)
____________
Bernard A. Kuttner, Esq. (Argued)
Kuttner Law Offices
24 Lackawanna Plaza
Millburn, NJ 07041
Counsel for Appellant
Kelsi B. Corkran, Esq. (Argued)
William Kanter, Esq.
United States Department of Justice
Appellate Section 7216
950 Pennsylvania Avenue, N.W.
Washington, DC 20530
-and
Christopher J. Brackett, Esq.
Sixtina Fernandez, Esq.
Ellen E. Sovern, Esq.
Social Security Administration
Office of General Counsel - Region II
26 Federal Plaza
New York, NY 10278
-and-
Eric P. Kressman, Esq.
Social Security Administration
SSA/OGC/Region III
6th Floor
P.O. Box 41777
Philadelphia, PA 19101
Counsel for Appellee
____________
OPINION OF THE COURT
____________
BARRY, Circuit Judge
This case – a case that involves the rights of the
posthumously conceived children of a deceased wage earner
and his widow – requires us to consider the intersection of
new reproductive technologies and what is required to qualify
for child survivor benefits under the Social Security Act (the
―Act‖). It goes without saying that these technologies were
not within the imagination, much less the contemplation, of
Congress when the relevant sections of the Act came to be,
and that they present a host of difficult legal and even moral
questions. We need not reach those difficult questions given
the discrete factual circumstances of this case. We,
nonetheless, cannot help but observe that this is, indeed, a
new world.
2
I. Background
A. Factual History
Robert Capato was born in the State of Washington in
1957 and, aside from a ten-year period when he resided in
California, lived in Washington until the 1990s. Mr. Capato
met his future wife, Karen, in Washington and subsequently
moved with her to Colorado, where they lived for two years.
In early 1999, the couple moved to Florida for Mr. Capato‘s
business, and lived in Florida for approximately three years.
At some point while in Florida, they decided to move to New
Jersey and took some steps in that regard, but did not leave
Florida prior to Mr. Capato‘s death.
In August 1999, shortly after the Capatos‘ wedding in
New Jersey, Mr. Capato was diagnosed with esophageal
cancer, and was told that the chemotherapy he required might
render him sterile. The Capatos, however, wanted children,
and thus, before he began his course of chemotherapy, Mr.
Capato deposited his semen in a sperm bank, where it was
frozen and stored. Somewhat surprisingly, given the
treatment that Mr. Capato was by then undergoing, Ms.
Capato conceived naturally and gave birth to a son in August
2001. The Capatos, however, wanted their son to have a
sibling.
Mr. Capato‘s health deteriorated in 2001, and he died
in Florida in March of 2002. His death certificate listed his
residence as Pompano Beach, Florida. Three months before
his death, he executed a will in Florida naming as his
beneficiaries the son born of his marriage to Ms. Capato and
two children from a prior marriage. Although Ms. Capato
claims that she and her husband spoke to their attorney about
including ―unborn children‖ in the will, ―so that it would be
understood that . . . they‘d have the rights and be supported in
the same way that [their natural born son] was already
privileged to,‖ App. at 288, the will did not contain any such
provision.
3
Shortly after Mr. Capato‘s death, Ms. Capato began in
vitro fertilization using the frozen sperm of her husband. She
conceived in January 2003 and gave birth to twins on
September 23, 2003, eighteen months after Mr. Capato‘s
death.
B. Procedural History
In October 2003, Ms. Capato applied for surviving
child‘s insurance benefits on behalf of the twins based on her
husband‘s earnings record. The Social Security
Administration denied her claim, and Ms. Capato timely
requested a hearing before an administrative law judge
(―ALJ‖). A hearing was held on May 30, 2007, with
testimony taken from Ms. Capato and two friends. On
November 28, 2007, the ALJ rendered his decision denying
Ms. Capato‘s claim. Observing that ―[t]his is a case where
medical-scientific technology has advanced faster than the
regulatory process,‖ id. at 6, and that this is a ―very
sympathetic case‖ in which ―allowing benefits would appear
to be consistent with the purposes of the Social Security Act,‖
the ALJ nonetheless believed himself ―constrained by
applicable laws and regulations to find disentitlement.‖ Id. at
7. Finding that the twins, conceived after the death of their
father, ―are not for Social Security purposes the ‗child(ren)‘
of the deceased wage earner, Robert Capato, under Florida
state law as required by section 216(h)(2)(A) of the Social
Security Act,‖ the ALJ concluded that they were not entitled
to child‘s insurance benefits in accordance with sections
202(d)(1) and 216(e) of the Act and the relevant regulations.
Id. at 8. The District Court affirmed, echoing the ALJ‘s
interpretation of the Act and his conclusion that Mr. Capato
was domiciled in Florida on the date of his death and, thus,
that Florida‘s law of intestacy should be applied. This timely
appeal, over which we have jurisdiction pursuant to 28 U.S.C.
§ 1291, followed. We will affirm in part and vacate in part,
and remand for further proceedings.1
1
We will affirm the dismissal of Ms. Capato‘s Equal
Protection claim. As the Ninth Circuit found in a similar
challenge, ―the [Social Security Administration] is not
4
II. Discussion
A. Standard of Review
We review de novo the District Court‘s decision to
uphold the denial of benefits. Boone v. Barnhart, 353 F.3d
203, 205 (3d Cir. 2003). We review the ALJ‘s decision to
assure that it was supported ―by substantial evidence in the
record.‖ Adorno v. Shalala, 40 F.3d 43, 46 (3d Cir. 1994)
(internal quotation marks and citation omitted). ―Substantial
evidence is more than a mere scintilla. It means such relevant
evidence as a reasonable mind might accept as adequate.‖
Ventura v. Shalala, 55 F.3d 900, 901 (3d Cir. 1995) (internal
quotation marks and citation omitted). ―Where the ALJ‘s
findings of fact are supported by substantial evidence, we are
bound by those findings, even if we would have decided the
factual inquiry differently.‖ Fargnoli v. Massanari, 247 F.3d
34, 38 (3d Cir. 2001).
B. Entitlement to Child’s Insurance Benefits
Title II of the Social Security Act, codified at 42
U.S.C. § 401 et seq., allows certain categories of children to
receive a survivor‘s benefit following the death of a ―fully or
currently insured individual.‖ 42 U.S.C. § 402(d)(1). The
purpose of ―federal child insurance benefits‖ is not to provide
general welfare benefits, but to ―replace the support that the
excluding all posthumously-conceived children, only those
that do not meet the statutory requirements under State law.‖
Vernoff v. Astrue, 568 F.3d 1102, 1112 (9th Cir. 2009). Such
a classification does not violate Equal Protection laws
because it is reasonably related to the government‘s interest in
assuring that survivor benefits reach children who depended
on the support of a wage-earner and lost that support due to
the wage-earner‘s death. See id. (―[T]he challenged
classifications are reasonably related to the government‘s
twin interest in limiting benefits to those children who have
lost a parent‘s support, and in using reasonable presumptions
to minimize the administrative burden of proving dependency
on a case-by-case basis.‖).
5
child would have received from his father had the father not
died.‖ Jones ex rel. Jones v. Chater, 101 F.3d 509, 514 (7th
Cir. 1996) (citing Mathews v. Lucas, 427 U.S. 495, 507-08
(1976)); see also Adams v. Weinberger, 521 F.2d 656, 659
(2d Cir. 1975) (the purpose of the Act is to provide support to
children who have lost ―actual‖ or ―anticipated‖ support). In
general, ―the [Act] is to be accorded a liberal application in
consonance with its remedial and humanitarian aims.‖
Eisenhauer v. Mathews, 535 F.2d 681, 686 (2d Cir. 1976).
To qualify for child‘s insurance benefits, the applicant
must be the ―child,‖ as defined in § 416(e) of the Act, of an
individual entitled to benefits or who is fully or currently
insured. 42 U.S.C. § 402(d)(1). Section 416(e) defines
―child‖ broadly as, in relevant part, ―the child or legally
adopted child of an individual.‖ Id. § 416(e)(1).
Additionally, and as relevant here, the ―child‖ (a) must have
filed an application for benefits, (b) must be unmarried and
less than eighteen years old (or an elementary or secondary
school student under nineteen), and (c) must have been
dependent upon the deceased individual at the time of his or
her death. Id. §§ 402(d)(1)(A)-(C). ―Every child (as defined
in section 416(e) of this title)‖ will qualify, assuming, of
course, that the other requisites have been met. Id. §
402(d)(1).
Section 416(h), entitled ―Determination of family
status,‖ offers other ways by which to determine whether an
applicant is a ―child‖:
In determining whether an applicant is the child
or parent of a fully or currently insured
individual for purposes of this subchapter, the
Commissioner of Social Security shall apply
such law as would be applied in determining the
devolution of intestate personal property by the
courts of the State in which such insured
individual is domiciled at the time such
applicant files application or, if such insured
individual is dead, by the courts of the State in
which he was domiciled at the time of his death.
6
Id. § 416(h)(2)(A).
Moreover, if an applicant is unable to inherit from the
deceased wage earner under state intestacy law, the Act
provides three alternative mechanisms by which to deem the
applicant a ―child‖ for purposes of survivor benefits. These
alternatives are, on their face, inapplicable here and are set
forth only for completeness. First, the applicant is deemed to
be the ―child‖ of the insured individual if the applicant is the
son or daughter and the covered parent went through a
marriage ceremony that would have been valid but for a legal
impediment. Id. § 416(h)(2)(B). Second, the applicant is
deemed to be the ―child‖ where the insured individual, before
death, either (a) acknowledged in writing that the applicant
was his or her child; (b) was decreed by a court to be the
mother or father of the applicant; or (c) was ordered by a
court to pay child support. Id. § 416(h)(3)(C)(i). Third, the
applicant is deemed to be the ―child‖ where the deceased
individual is shown to be the mother or father, and the
deceased individual was living with or contributing to the
child‘s support at the time of death. Id. § 416(h)(3)(C)(ii).
Thus, ―child‖ is defined in different subsections of the
Act -- § 416(e) and again in §§ 416(h)(2)(A), 416(h)(2)(B),
and 416(h)(3). Were we to determine that the § 416(h)(2)(A)
definition of ―child‖ is appropriate here and go on to apply
the law of intestacy of Florida, as the Commissioner argues
we should, we would affirm. But neither the Commissioner
nor the District Court, who agreed with the Commissioner,
has told us why, in the factual circumstances of this case,
where there is no family status to determine, we would even
refer to § 416(h). Under § 402(d), the child is a ―child‖ as
defined in § 416(e). To accept the argument of the
Commissioner, one would have to ignore the plain language
of § 416(e) and find that the biological child of a married
couple is not a ―child‖ within the meaning of § 402(d) unless
that child can inherit under the intestacy laws of the domicile
of the decedent. There is no reason apparent to us why that
should be so, and we join the Ninth Circuit in so concluding.
7
In Gillett-Netting v. Barnhart, 371 F.3d 593 (9th Cir.
2004), a case factually identical to the case before us, 2 the
Ninth Circuit explained that §§ 416(h)(2) and (3) ―were added
to the Act to provide various ways in which children could be
entitled to benefits even if their parents were not married or
their parentage was in dispute,‖ and have ―no relevance‖ for
determining whether a claimant is the ―child‖ of a deceased
wage earner where parentage is not in dispute. 371 F.3d at
596. The Commissioner conceded that Mr. Netting‘s children
were his biological children, id. at 597, as here the
Commissioner concedes that Mr. Capato‘s children are his.
The Ninth Circuit found that the district court erred when it
concluded that Mr. Netting‘s children were not ―children‖ for
purposes of the Act.3
In response to Gillett-Netting, the Commissioner
issued an ―Acquiescence Ruling,‖ effective September 22,
2005.4 See Social Security Acquiescence Ruling 05-1(9), 70
Fed. Reg. 55,656 (Sept. 22, 2005). The Acquiescence Ruling
2
The husband was diagnosed with cancer, was advised that
chemotherapy might render him sterile, and his semen was
frozen and stored in hopes that, even after he died, his wife
would have his children. His wife conceived by means of in
vitro fertilization and gave birth to twins eighteen months
after his death.
3
Because, in the case before us, the District Court did not
reach the issue of dependency given its conclusion that the
definition of ―child‖ was not satisfied, we, therefore, need not
address the Ninth Circuit‘s conclusion that Mr. Netting‘s
children were ―conclusively deemed dependent on [him]
under the Act‖ and why that was thought to be so. 371 F.3d
at 599.
4
―An acquiescence ruling explains how we will apply a
holding in a decision of a United States Court of Appeals that
we determine conflicts with our interpretation of a provision
of the Social Security Act (Act) or regulations when the
Government has decided not to seek further review of that
decision or is unsuccessful on further review.‖ See Social
Security Acquiescence Ruling 05-1(9), 70 Fed. Reg. 55,656
(Sept. 22, 2005).
8
limited the application of Gillett-Netting to claims within the
Ninth Circuit. Id. at 55,657. It also contained a ―Statement
as to How Gillett-Netting Differs From SSA‘s Interpretation
of the Social Security Act.‖ Id. In that Statement, the
Commissioner hewed to the arguments she had made to the
Ninth Circuit: in all cases, § 416(h) ―provides the analytical
framework that we must follow for determining whether a
child is the insured‘s child for the purposes of section
[416(e)],‖ and § 416(h)(2)(A) directs the application of state
intestacy law or the alternative mechanisms in §§
416(h)(2)(B) and 416(h)(3)(C) to determine whether a child is
a ―child.‖ Id. An ―after-conceived‖ child, she continued,
cannot satisfy the alternative mechanisms in §§ 416(h)(2)( B)
and 416(h)(3)(C), and ―[c]onsequently, to meet the definition
of ‗child‘ under the Act, an after-conceived child must be able
to inherit under State law.‖ Id. There was no explanation as
to why the statute even suggests, much less compels, that
result.
The Commissioner has attempted to explain to us why
the Ninth Circuit‘s analysis of the Act‘s legislative history
was ―indisputably mistaken.‖ The explanation goes as
follows: ―When child survivor benefits were established in
1939, section 416(h)(2)(A) was the only way any child could
be eligible for benefits.‖ Appellee‘s Br. at 34. Because no
effective means existed at that time to scientifically prove a
child-parent relationship, Congress determined that the
primary way to prove child status should be eligibility to
inherit under state law. Id. Given that state laws would have
provided for inheritance by the child of a marriage, that child
would have no problem qualifying as the wage-earner‘s
―child‖ for survivor benefits under the Act. The
Commissioner argues that even though Congress added §
416(h)(3) in 1965 to provide additional ways by which a child
could prove ―child‖ status, ―that addition did nothing to
change the existing requirement that all children, even
including children of married parents whose parentage was
not in dispute, satisfy at least one of the provisions of section
416(h).‖ Id. at 35.
9
The explanation ignores the fundamental question:
why should we, much less why must we, refer to § 416(h)
when § 416(e) is so clear, and where we have before us the
undisputed biological children of a deceased wage earner and
his widow. The plain language of §§ 402(d) and 416(e)
provides a threshold basis for defining benefit eligibility. The
provisions of § 416(h) then provide for ―[d]etermination of
family status‖—subsection (h)‘s heading—to determine
eligibility where a claimant‘s status as a deceased wage-
earner‘s child is in doubt. Were it the case that such status
had to be determined here, we would turn to the relevant
provisions of § 416(h). But a basic tenet of statutory
construction is that ―[i]n the absence of an indication to the
contrary, words in a statute are assumed to bear their
‗ordinary, contemporary, common meaning.‘‖ Walters v.
Metro. Educ. Enters., Inc., 519 U.S. 202, 207 (1997) (quoting
Pioneer Inv. Servs. Co. v. Brunswick Assocs. Ltd. P’ship, 507
U.S. 380, 388 (1993)). The term ―child‖ in § 416(e) requires
no further definition when all parties agree that the applicants
here are the biological offspring of the Capatos. Stated
somewhat differently, we do not read §§ 402(d) or 416(e) as
requiring reference to § 416(h) to establish child status under
the facts of this case. Our analysis does not render § 416(h)
superfluous but, rather, places it in context with § 416(e) and
the clear command of § 402(d)(1) to refer to § 416(e) to
define the word ―child.‖5
We acknowledge that another factual scenario might
render the Commissioner‘s concerns more persuasive. Those
concerns must, however, await another case, though we note
them ourselves with some concern:
[A]lthough biological paternity can now be
scientifically proven to a near certain degree of
5
Because we can resolve this issue based on our analysis of
Congress‘ ―unambiguously expressed intent‖ in the statutory
language, we need not determine whether the
Commissioner‘s interpretation is a permissible construction
of the statute. See Chevron, U.S.A., Inc. v. Natural Res. Def.
Council, Inc., 467 U.S. 837, 842-43 (1984).
10
probability, modern artificial reproduction
technologies currently allow for variations in
the creation of child-parent relationships which
are not solely dependent upon biology. The use
of donor eggs, artificial insemination, and
surrogate wombs could result in at least five
potential parents. Accordingly, even in modern
times, the basic assumption underlying the
Gillett-Netting panel‘s reasoning – i.e., that
biological paternity always results in an
‗undisputed‘ child-parent relationship – is
unfounded.
Appellee‘s Br. at 36 (internal citation omitted).
To be sure, as the Ninth Circuit put it, ―[d]eveloping
reproductive technology has outpaced federal and state laws,
which currently do not address directly the legal issues
created by posthumous conception.‖ Gillett-Netting, 371
F.3d at 595. As we have noted, the more difficult of those
legal issues are not before us. What is before us is a discrete
set of circumstances and the narrow question posed by those
circumstances: are the undisputed biological children of a
deceased wage earner and his widow ―children‖ within the
meaning of the Act? The answer is a resounding ―Yes.‖
Accordingly, we will vacate the order of the District Court in
part and remand for a determination of whether, as of the date
of Mr. Capato‘s death, his children were dependent or
deemed dependent on him, the final requisite of the Act
remaining to be satisfied.6
6
Given this disposition, it is not necessary for us to
determine where Mr. Capato was domiciled at his death or to
delve into the law of intestacy of that state. We note,
however, that were we to decide the issue of domicile, we
would likely conclude that it was Florida.
11