Opinion

Scala

Court
District Court, D. Oregon
Filed
Jul 28, 2026
Cited by
0 cases
Authority
More cited than 42.1%

The opinion

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF OREGON

ASHLEY S.,1 Case No. 1:25-cv-01597-SB

Plaintiff, OPINION AND ORDER

v.

COMMISSIONER SOCIAL SECURITY

ADMINISTRATION,

Defendant.

BECKERMAN, U.S. Magistrate Judge.

Ashley S. (“Plaintiff”) filed this appeal challenging the Commissioner of Social

Security’s (“Commissioner”) denial of her application for Disability Insurance Benefits (“DIB”)

under Title II of the Social Security Act. The Court has jurisdiction over this matter pursuant to

42 U.S.C. § 405(g). For the reasons explained below, the Court reverses the Commissioner’s

decision because it is based on harmful legal error and not supported by substantial evidence in

the record.

1 In the interest of privacy, this opinion uses only the first name and the initial of the last

name of the non-governmental party.

STANDARD OF REVIEW

“As with other agency decisions, federal court review of social security determinations is

limited.” Treichler v. Comm’r of Soc. Sec. Admin., 775 F.3d 1090, 1098 (9th Cir. 2014). A federal

court’s review is limited because “[f]or highly fact-intensive individualized determinations like a

claimant’s entitlement to disability benefits, Congress places a premium upon agency expertise,

and, for the sake of uniformity, it is usually better to minimize the opportunity for reviewing

courts to substitute their discretion for that of the agency.” Id. (quoting Consolo v. Fed. Mar.

Comm’n, 383 U.S. 607, 621 (1966)). Adhering to this principle, courts “follow three important

rules” in reviewing social security determinations. Brown-Hunter v. Colvin, 806 F.3d 487, 492

(9th Cir. 2015).

First, courts “leave it to the [agency] to determine credibility, resolve conflicts in the

testimony, and resolve ambiguities in the record.” Id. (quoting Treichler, 775 F.3d at 1098).

Second, courts “will ‘disturb the Commissioner’s decision to deny benefits only if it is not

supported by substantial evidence or is based on legal error.’” Id. (quoting Treichler, 775 F.3d at

1098). Third, if the agency “‘commits legal error, [courts] uphold the decision where that error is

harmless,’ meaning that ‘it is inconsequential to the ultimate nondisability determination,’ or that,

despite the legal error, ‘the agency’s path may reasonably be discerned, even if the agency

explains its decision with less than ideal clarity.’” Id. (quoting Treichler, 775 F.3d at 1098); see

also Smith v. Kijakazi, 14 F.4th 1108, 1111 (9th Cir. 2021) (“And even where this modest

[substantial evidence] burden is not met, [courts] will not reverse an [agency] decision where the

error was harmless.” (citing Molina v. Astrue, 674 F.3d 1104, 1111 (9th Cir. 2012), superseded on

other grounds by regulation as recognized in Farlow v. Kijakazi, 53 F.4th 485, 487 (9th Cir.

2022))).

///

BACKGROUND

I. PLAINTIFF’S APPLICATION

Plaintiff was born in November 1989, making her thirty years old on March 31, 2020, her

amended alleged disability onset date. (Tr. 36, 50, 58.) Plaintiff graduated from high school and

last worked as a bookkeeper. (Id. at 41, 211.) In her DIB application, Plaintiff alleges disability

due to a back injury, chronic pancreatitis, depression, anxiety, and “possible gastritis.” (Id. at 58,

210.)

The Commissioner denied Plaintiff’s application initially and upon reconsideration, and

on November 27, 2023, Plaintiff requested a hearing before an Administrative Law Judge

(“ALJ”). (Id. at 19.) On July 11, 2024, Plaintiff and an impartial vocational expert (“VE”)

testified at a telephonic hearing held before an ALJ. (Id. at 34-48.) On July 18, 2024, the ALJ

issued a written decision denying Plaintiff’s application. (Id. at 19-27.) On July 22, 2025, the

Appeals Council denied Plaintiff’s request for review, making the ALJ’s written decision the

final decision of the Commissioner. (Id. at 1-6.) Plaintiff now seeks judicial review of that

decision.

II. THE SEQUENTIAL PROCESS

A claimant is considered disabled if he or she is unable to “engage in any substantial

gainful activity by reason of any medically determinable physical or mental impairment

which . . . has lasted or can be expected to last for a continuous period of not less than [twelve]

months[.]” 42 U.S.C. § 423(d)(1)(A). “Social Security Regulations set out a five-step sequential

process for determining whether an applicant is disabled within the meaning of the Social

Security Act.” Keyser v. Comm’r Soc. Sec. Admin., 648 F.3d 721, 724 (9th Cir. 2011) (citation

omitted). Those five steps are: (1) whether the claimant is engaged in substantial gainful activity;

(2) whether the claimant has a severe impairment; (3) whether the impairment meets or equals a

listed impairment; (4) whether the claimant can return to any past relevant work; and (5) whether

the claimant can perform other work that exists in significant numbers in the national economy.

Id. at 724-25.

To establish a “prima facie case of a disability,” a claimant must demonstrate “at steps

one through four of the sequential evaluation process that she suffers from a severe impairment

that prevents her from doing any work she has done in the past, or that she has a severe

impairment and has no relevant past work[.]” White v. Kijakazi, 44 F.4th 828, 833 (9th Cir. 2022)

(citing Tackett v. Apfel, 180 F.3d 1094, 1098 (9th Cir. 1999)). If the claimant does so, “[t]he

burden then shifts to the Commissioner at step five to establish that the claimant can perform a

‘significant number[]’ of jobs in the national economy given the claimant’s physical and mental

limitations, age, education, and work experience.” Id. (first quoting 20 C.F.R. § 416.960(c)(2);

and then citing Thomas v. Barnhart, 278 F.3d 947, 955 (9th Cir. 2002)). “If the Commissioner

meets [his] burden, the claimant has failed to establish disability.” Thomas, 278 F.3d at 955

(simplified).

III. THE ALJ’S DECISION

The ALJ applied the sequential evaluation process to determine if Plaintiff is disabled.

(Tr. 19-27.) At step one, the ALJ found that Plaintiff had not engaged in substantial gainful

activity since March 31, 2020, her amended alleged disability onset date. (Id. at 21, 36.) At step

two, the ALJ determined that Plaintiff had two medically determinable impairments: chronic

pancreatitis and anxiety. (Id. at 21-22.) After considering the record evidence, including

Plaintiff’s testimony and the state agency medical and psychological consultants’ opinions, the

ALJ concluded that Plaintiff did not have a severe impairment or combination of impairments

during the relevant period. (Id. at 22-27.) The ALJ in turn found that Plaintiff was not disabled

and denied her application without considering the remaining steps of the sequential process.

(Id. at 27.)

DISCUSSION

Plaintiff argues that the ALJ erred in finding that she failed to make the “de minimis”

showing necessary to proceed past step two of the sequential analysis. (Pl.’s Opening Br. at 4,

10-11, ECF No. 10; Pl.’s Reply Br. at 2-8, ECF No. 13; see also Def.’s Br. at 2-8, ECF No. 12.)

Plaintiff asserts that the ALJ’s error stemmed from his failure to provide clear and convincing

reasons for discounting her symptom testimony and account for certain evidence that she

presented on the severity of her anxiety and pancreatitis. (Pl.’s Opening Br. at 4, 10-11; Pl.’s

Reply Br. at 2-8.)

The Court agrees that the Commissioner’s decision is based on harmful legal error and

not supported by substantial evidence. The Court therefore reverses the Commissioner’s

decision.

I. APPLICABLE LAW

“Step two inquires whether the claimant had severe impairments during the period for

which he seeks disability benefits.” Glanden v. Kijakazi, 86 F.4th 838, 843 (9th Cir. 2023) (citing

20 C.F.R. § 404.1520(a)(4)(ii)). To satisfy the step-two burden, a claimant must establish that she

has a “medically severe impairment or combination of impairments that significantly limits h[er]

ability to do basic work activities.” Webb v. Barnhart, 433 F.3d 683, 686 (9th Cir. 2005) (citing

20 C.F.R. § 404.1520(a)(4)(ii)); Glanden, 86 F.4th at 843 (“An impairment is severe if it

‘significantly limits’ an individual’s ‘ability to do basic work activities.’” (quoting 20 C.F.R.

§ 404.1520(c))).

The Ninth Circuit has adopted the agency’s “narrow interpretation” of the step-two

regulation in Social Security Ruling (“SSR”) 85-28, which “construes step two as a de minimis

requirement that screens out only frivolous claims.” Glanden, 86 F.4th at 843 (citing Yuckert v.

Bowen, 841 F.2d 303, 306 (9th Cir. 1988)). Given that ALJs “rare[ly]” deny claims at step two,

the Ninth Circuit has published only four opinions on this scenario, remanding three cases and

affirming one. See id. at 844-48 (reversing and remanding after describing the three previously

published opinions (first citing generally to Edlund v. Massanari, 253 F.3d 1152 (9th Cir. 2001);

then citing Webb, 433 F.3d at 683; and then citing Ukolov v. Barnhart, 420 F.3d 1002 (9th Cir.

2005)).

In all of these cases, the Ninth Circuit “reiterated the corollary principles that claimants

need only make a de minimis showing for the [sequential] analysis to proceed past [step two] and

that properly denying a claim at step two requires an unambiguous record showing only minimal

limitations.” See id. at 843-44 (“An inconclusive medical record precludes denial at this step. If

an ALJ is unable to determine clearly the effect of an impairment . . . on the individual’s ability

to do basic work activities, the sequential evaluation should not end with the not severe

evaluation step. Rather, it should be continued.”) (simplified). In other words, “once a claimant

presents evidence of a severe impairment, an ALJ may find an impairment or combination of

impairments ‘not severe’ at step two ‘only if the evidence establishes a slight abnormality that

has no more than a minimal effect on an individual’s ability to work.” Id. at 844 (quoting Webb,

433 F.3d at 686).

II. ANALYSIS

The parties dispute whether the ALJ’s step-two denial was based on harmful legal error

and supported by substantial evidence. (See Pl.’s Opening Br. at 11-19, invoking “both prongs of

judicial review”; Def.’s Br. at 2-12, disputing this threshold assertion). Although the Ninth

Circuit’s “relevant caselaw” is “limited,” it supports finding that Plaintiff “made the requisite

showing to meet step two’s low bar” because the “cumulative evidence is enough to establish

that [her] claim is nonfrivolous and . . . require[d] the ALJ to proceed to step three.” See

Glanden, 86 F.4th at 844-45 (reviewing an ALJ’s step-two denial and making analogous

observations).

A. Relevant Caselaw

It is useful to consider at the outset the Ninth Circuit’s decision in Ukolov because unlike

Edlund, Webb, and Glanden, Ukolov is a published opinion involving “precisely th[e] sort of

frivolous claim” that ALJs may screen at step two of the sequential process. See Glanden, 86

F.4th at 845. In Ukolov, there was a “total absence of objective evidence of severe medical

impairment” and “even the claimant’s doctor was hesitant to conclude that any of the claimant’s

symptoms and complaints were medically legitimate.” Webb, 433 F.3d at 688 (citing Ukolov, 420

F.3d at 1006). As a result, the Ninth Circuit “affirmed a finding of no disability at step two.” Id.

(simplified).

In Webb, by contrast, the Ninth Circuit “remanded for further analysis because substantial

evidence did not support the ALJ’s finding that [the claimant’s] ‘claim was groundless.’”

Glanden, 86 F.4th at 845 (quoting Webb, 433 F.3d at 688). The Ninth Circuit in Glanden also

found that the record “counsel[ed] the same result” as Webb. See id. at 845, 848 (making this

finding and later concluding that the claimant “presented sufficient evidence to overcome the low

bar of showing that his claim was not groundless”). In so finding, the Ninth Circuit explained

that Ukolov was distinguishable because the Glanden claimant’s “extensive medical history and

explanation for his gap in treatment” demonstrated that “substantial evidence [did] not support

the finding that the record clearly establishe[d] the absence of severe impairments.” Id. at 845-

46.

The Ninth Circuit also explained that the ALJ’s “erroneous step-two denial stemmed from

his rejection of [the claimant’s] explanation for his treatment gap based on a misreading of the

record.” Id. at 845 (“This misinterpretation pervaded the rest of the ALJ’s analysis.”).

Specifically, the ALJ failed to account for the claimant’s testimony that “no free treatment was

available” to him, he could not “afford treatment during the period when he lacked insurance,”

and he “extensively modified his activities” to “cope with his symptoms” in the “absence of

treatment.” Id. Thus, the Ninth Circuit held that the ALJ failed to satisfy the “clear and

convincing standard[, i.e.,] the most demanding required in Social Security cases” and that

“[b]ecause the record did not clearly establish a slight impairment with no more than a minimal

effect on [the claimant’s] ability to work, the ALJ should not have denied the claim at step two.”

Id. at 845-48 (first quoting Garrison v. Colvin, 759 F.3d 995, 1015 (9th Cir. 2014); and then

quoting Webb, 433 F.3d at 686).

B. Plaintiff’s Symptom Testimony

As in Glanden, the Court finds that the ALJ erred in discounting Plaintiff’s subjective

symptom testimony, which “bolster[s]” the conclusion that she “presented sufficient evidence to

overcome the low bar of showing that [her] claim was not groundless.” 86 F.4th at 848

(simplified).

It is undisputed that the ALJ discounted Plaintiff’s symptom testimony in denying her

claim at step two and that the clear and convincing reasons standard (i.e., the “most demanding

required in Social Security cases,” Garrison, 759 F.3d at 1015) applies here. (See Def.’s Br. at 8-

11 & n.3, arguing that the ALJ’s “findings pass the Ninth Circuit’s” clear and convincing reasons

“test”; see also Tr. 23-24, setting forth the ALJ’s evaluation of Plaintiff’s subjective symptom

testimony). The Commissioner argues that the ALJ provided two clear and convincing reasons

for discounting Plaintiff’s testimony regarding the intensity, persistence, and limiting effects of

her anxiety and chronic pancreatitis: (1) evidence of improvement with treatment, and

(2) conflicting medical evidence, in particular unremarkable mental status exams, tests, and

imaging. (See Def.’s Br. at 9-11, reflecting that the Commissioner respectively turns “[f]irst” and

“[s]econd” to improvement and conflicting medical evidence, i.e., physical exams and related

test results and “unremarkable mental status exam” findings, and then addresses Plaintiff’s

arguments).

On this record, substantial evidence does not support the ALJ’s discounting of Plaintiff’s

testimony regarding her anxiety symptoms. See Webb, 433 F.3d at 687 (holding that “the ALJ’s

reasons for rejecting [the claimant’s] complaints at step two [were] not substantial enough to

meet the clear and convincing standard when balanced against [the claimant’s] doctors’

contemporaneous observations, some objective tests and [the claimant’s] subjective complaints”)

(simplified); (cf. Def.’s Br. at 9-11, defending the ALJ’s evaluation of Plaintiff’s anxiety on these

grounds; Tr. 24, noting that in the final paragraph, the ALJ discounted Plaintiff’s testimony about

anxiety).

In discounting Plaintiff’s symptom testimony, the ALJ explained that Plaintiff’s “anxiety

significantly decreased when treated with medication and she started getting out of the house

more[] and began receiving unemployment benefits[.]” (Tr. 24, citing Ex. 2F at 14, 16, 18-19, 22,

27, 32, 37, 87, 100, 119, 126; Ex. 3F at 15, 20, 26, 28, 31, 101, 115, 134; Ex. 7F at 6-7, i.e., Tr.

500, 502, 504-05, 508, 513, 518, 523, 573, 586, 605, 612, 664, 669, 675, 677, 680, 750, 764,

783, 889-90.) The ALJ also emphasized that Plaintiff’s mental status exams were “generally

benign” but acknowledged that Plaintiff occasionally reported that she “experienced some

anxiety with panic and depression” and presented with “variable mood and affect.” (Id.)

(simplified).

“Impairments that can be controlled effectively with medication are not disabling for the

purpose of determining eligibility for [social security] benefits.” Warre v. Comm’r of Soc. Sec.

Admin., 439 F.3d 1001, 1006 (9th Cir. 2006) (citations omitted). At the same time, however, a

physician’s “statements must be read in the overall diagnostic picture he draws.” Holohan v.

Massanari, 246 F.3d 1195, 1205 (9th Cir. 2001). After all, a claimant “who suffers from severe

panic attacks, anxiety, and depression [may] make[] some improvement [but that] does not mean

that [her] . . . impairments no longer seriously affect her ability to function in a workplace.” Id.

(simplified).

Furthermore, as the Ninth Circuit has “emphasized while discussing mental health issues,

it is error to reject a claimant’s testimony merely because symptoms wax and wane in the course

of treatment.” Garrison, 759 F.3d at 1017. According to the Ninth Circuit, because “[c]ycles of

improvement and debilitating symptoms are a common occurrence, . . . it is error for an ALJ to

pick out a few isolated instances of improvement over a period of months or years and to treat

them as a basis for concluding a claimant is capable of working.” Id. (citing Holohan, 246 F.3d at

1205).

In this case, the ALJ improperly relied on isolated exam findings and instances of

improvement in Plaintiff’s anxiety and failed to consider the overall diagnostic picture that her

providers drew. The ALJ also relied on duplicates of records that he previously cited, which is

notable in this context. (See Tr. 24, citing Tr. 500, 675 (June 3, 2022); Tr. 502, 504-05, 677, 680

(April 1, 2022); Tr. 573, 750 (December 23, 2020); Tr. 586, 764 (September 25, 2020); Tr. 605,

783 (July 2, 2020).)

The ALJ highlighted multiple reports (including duplicates) from a nurse practitioner,

Maggie Gressle (“Nurse Gressle”), who “assume[d]” Plaintiff’s care after her long-time family

nurse practitioner, Kelly Clayton (“Nurse Clayton”), left the clinic on March 4, 2022, nearly two

years after the amended alleged disability onset date. (See Tr. 24, citing Tr. 500, 502, 504-05,

664, 669, i.e., Nurse Gressle’s records dated April 1, June 3, September 1, and November 2022;

Tr. 509, noting that on March 1, 2022, Nurse Clayton informed Plaintiff about her departure and

change in provider). Significantly, the diagnostic picture that Nurses Clayton and Gressle drew

during the relevant period suggests that Plaintiff’s anxiety seriously impacted her ability to

function in a workplace:

• August 30, 2019: About seven months before her amended alleged disability onset

date and one month after an extended hospitalization for “severe sepsis,” “acute

pancreatis,” and “uninfected necrosis,” Plaintiff established care with Nurse

Clayton and reported that she had returned to her work as a bookkeeper but was

“still experienc[ing] some abdominal pain” and “concerned about re-occurrence”

of her severe symptoms of pancreatitis. (Tr. 644; see also id. at 274-75, 278-91,

315, 316, describing Plaintiff’s hospital stay, including when noise from nearby

construction “[c]aused her some anxiety” and a nurse needed to hold her hand and

assist with “[b]reathing exercises”). Nurse Clayton’s psychiatric exam was

positive for anxiety and she noted that Plaintiff’s mood and affect were “anxious,”

she diagnosed a generalized anxiety disorder and prescribed sertraline, and her

“standardized tool” for screening “clinical depression” was also “[p]ositive.”

(Id. at 646-49.)

• December 2, 2019: Plaintiff reported that her “[s]tress/anxiety levels ha[d] been

increasing [the] last few months” and she “felt better” post-discharge but was now

“tired all time” and “fatigued often” and her hair was “[f]alling out in clumps.”

(Id. at 636.) Nurse Clayton noted that Plaintiff admitted to anxiety and sleep

difficulties on exam and presented with an anxious mood and affect. (Id. at 638-

39.)

• December 23, 2019: Plaintiff’s “anxiety had been worse lately” and Nurse

Clayton noted that Plaintiff should “move out of [her] parents’ home as [it was] a

large cause of her anxiety,” previously “[t]ried paxil and sertraline,” planned to

“try citalopram,” received a “breakthrough med[ication]” (alprazolam) for “severe

panic attacks,” and exhibited an anxious mood and affect on psychiatric exam.

(Id. at 629-32.)

• January 28, 2020: Plaintiff endorsed anxiety, depression, and difficulty sleeping,

presented with an anxious mood and affect, and reported “a lot of extra stress at

work due to being shorthanded” at work and continued “nausea/vomiting.” (Id. at

624-27.) Nurse Clayton reported that Plaintiff was “[d]oing well” thus far on

citalopram but “still anxious,” so she elected to “increase [her] dos[age.]” (Id. at

627.)

• March 10, 2020: Plaintiff stopped taking her increased dose of citalopram a “few

days after starting it due to stomach pain and nausea” and endorsed posttraumatic

stress disorder (“PTSD”) and anxiety “from being in the hospital” and being able

to “manage” severe panic attacks with “intermittent use of alprazolam.” (Id. at

620, 623.)

• April 3, 2020: Plaintiff reported that she had been suffering from anxiety, she

found that buspirone, sertraline, and citalopram were “ineffective,” her “new

medication [was] making [her] anxiety much worse,” she did not sleep the

previous evening, and she had “moderate anxiety over job related stress and

COVID-19.” (Id. at 617-19.) She also reported that her “feelings of anxiety ha[d]

developed over the past [four] weeks,” she had “no work or income for three

weeks” because she had been “laid off,” she “applied for unemployment” but was

“waiting for [a] determination,” her hospital stay exacerbated her “[f]ear[],” she

was “afraid to come out of home into public” and she needed her “father [to

handle] her grocery shopping.” (Id.) Nurse Clayton’s psychiatric exam revealed

that Plaintiff’s “judgment and insight,” “insight [regarding her] current

condition,” and “judgment for everyday activities and social situations” were all

“impaired” and Plaintiff presented with an “anxious” mood and signs of “panic.”

(Id. at 619.)

• June 3, 2020: Plaintiff “looked like a different person” because she appeared

“relaxed” and “conversational without anxiety” and reported that she was feeling

“remarkably well” and without abdominal pain on a plant-based diet, she was

building a greenhouse with her mother, she was not receiving unemployment

because her employer failed properly to process her unemployment paperwork,

she hoped to return to work in July, she had been able to sleep six to eight hours

per night, and she was “astounded at how much difference th[at] makes.” (Id. at

609-12.)

• July 2, 2020: Plaintiff reported that her anxiety was “[d]oing better,” she received

her unemployment check, she continued to believe that she suffers from PTSD,

and she attributed her reduced anxiety to “not having both work and home stress.”

(Id. at 605-08.)

///

• July 30, 2020: Plaintiff did not “want to be in public” because she was concerned

about COVID-19 and received counseling regarding “family pressure to do things

she [did not] want to do or feel comfortable doing.” (Id. at 600-03; cf. id. at 619,

suggesting that COVID-19 exacerbated post-intensive care unit fears about being

“at risk for death”).

• August 21, 2020: Nurse Clayton’s exam was positive for depression and anxiety.

(Id. at 596-99.)

• August 27, 2020: Nurse Clayton noted that Plaintiff presented with an anxious

mood and affect and endorsed symptoms of anxiety and depression on exam.

(Id. at 590-93.)

• September 25, 2020: Nurse Clayton’s assessment was positive for “[s]ignificant

depression and she noted that Plaintiff presented with an anxious mood and affect

and reported that being ready to return to work” and “get out of [the] house more

now” and the increase in depression was related to her “living situation.” (Id. at

586-89.)

• October 23, 2020: Nurse Clayton’s psychiatric exam was positive for depression

and anxiety and she noted that Plaintiff presented with an anxious mood and

affect and reported that she continued to have anxiety and look for a job. (Id. at

582-85.)

• November 24, 2020: Clayton noted that Plaintiff, who was tearful during her visit,

reported that she had been “very anxious and nauseous” and that she was upset

about a discussion with a medical assistant, which Nurse Clayton overheard and

described as “professional” and concerning only “a clear guideline with which

[Plaintiff was] familiar.” (Id. at 579.) Nurse Clayton noted that Plaintiff’s exam

revealed that “rapidity of thinking [was] present,” Plaintiff’s “thought processes

[were] tangential,” and Plaintiff’s mood and affect were “anxious.” (Id. at 580-

81.) Nurse Clayton advised Plaintiff that “[t]reating symptoms [was] a band-aid

approach to a bigger issue of depression/anxiety” and that she “need[ed] mental

health care” and to consider a psychiatric “evaluation and treatment at Curry

Mental Health,” even though she was “resistant” to such recommendations. (Id. at

581.)

• December 23, 2020: Plaintiff’s anxiety was “better with escitalopram.” (Id. at

573-76.)

• February 17, 2021: Nurse Clayton increased the dosage of Plaintiff’s medication,

advised Plaintiff to “call Curry Mental Health,” and noted that Plaintiff endorsed

anxiety, depression, and difficulty sleeping, presented with an anxious mood and

affect, and tried to avoid taking her breakthrough medication on a nightly basis.

(Id. at 564-68.)

• March 16, 2021: Plaintiff informed Nurse Clayton that she was unable to

“tolerate” her increased dosage of buspirone” because it resulted in “severe

nausea” and that she was feeling “withdrawn,” depressed, and anxious. (Id. at

560-63.)

• April 16, 2021: Plaintiff endorsed depression and anxiety, her mood and affect

were anxious, and she had a “hard time” after “put[ting] down [her] dog.” (Id. at

555-59.)

///

• May 21, 2021: Nurse Clayton noted that Plaintiff exhibited signs of “mild panic”

and anxiety, endorsed anxiety, and presented with an anxious mood. (Id. at 551-

54.)

• July 16, 2021: Nurse Clayton’s psychiatric exam was positive for depression,

anxiety, and sleep difficulty and Plaintiff’s mood and affect were “anxious.”

(Id. at 546-50.)

• September 10, 2021: On psychiatric exam, Plaintiff endorsed feeling “withdrawn”

and suffering from anxiety and presented with an anxious mood and affect. (Id. at

540-45.)

• September 27, 2021: Nurse Clayton noted that Plaintiff complained of tooth

decay-related pain, reported “regular” nausea and vomiting that was “likely

contributing to [her] poor oral health,” endorsed anxiety and depression, exhibited

“rapidity of thinking,” and presented with an anxious mood and affect. (Id. at 535-

39.)

• October 8, 2021: Plaintiff reported that she was “not taking medication for

anxiety” and experienced “moderate anxiety over stress related to a relationship”

and Nurse Clayton noted that she presented with an anxious mood and affect.

(Id. at 532-34; see also id. at 521-26, November 5, 2021, describing the same

mood and affect).

• January 4, 2022: Nurse Clayton’s exam was positive for depression and anxiety

and she referred Plaintiff to a gastroenterologist regarding her pancreatitis. (Id. at

511-15.)

///

• March 1, 2022: During her final visit with Nurse Clayton, Plaintiff presented with

an anxious mood and “appropriate” affect and Nurse Clayton noted that her

psychiatric exam was positive for depression and anxiety. (Id. at 506-10, noting

Nurse Clayton’s departure and scheduling a four-week follow-up with Nurse

Gressle).

• April 1, 2022: Plaintiff stated that her “anxiety [was] high with everything going

on” and Nurse Gressle noted that Plaintiff’s anxiety was “under good control.”

(Id. at 502-05.)

• June 3, 2022: Nurse Gressle described Plaintiff’s anxiety as under “good control”

but also cited Plaintiff’s reports that her anxiety was “good when home by herself

but she [could not] be home alone for too long as that makes her anxious too” and

she continued to have “intermittent bou[ts] of diarrhea[] and constipation.” (Id. at

496-500.)

• September 1, 2022: Plaintiff complained primarily of depression and anxiety and

reported that she had “not been feeling well because of [gastrointestinal] upset”

(i.e., nausea) and ongoing “tension headache[s.]” (Id. at 491, 493.) Nurse Gressle

reported that Plaintiff’s “[d]epression/anxiety” was “doing somewhat better,”

Plaintiff’s “medication really help[ed],” and Plaintiff was “making progress” to

the extent that she was “able to come into the office [that day] and sit in the

waiting room,” neither of which she had “been able to do . . . in a long time.” (Id.

at 494.) Nurse Gressle added that Plaintiff’s “[c]hronic pancreatitis” was

“[c]urrently under control” but she had “intermittent episodes of just not feeling

well.” (Id.)

• November 1, 2022: Plaintiff informed Nurse Gressle that she “[f]eeling good.”

(Id. at 661.) Nurse Gressle described Plaintiff’s mood and affect as normal and

appropriate and that her anxiety was “under good control” with alprazolam.

(Tr. 664.)

• February 1, 2023: Nurse Gressle described Plaintiff’s “[c]hronic pancreatitis” as

“under good control” despite “some associated problems [with] hair loss and [her]

teeth [were] falling out/decaying.” (Id. at 656-60.) Nurse Gressle also noted that

Plaintiff had “daily bouts” of nausea, “some days [were] better than others” with

respect to nausea, and she was “using ondansetron to help control it.” (Id. at 660.)

Nurse Gressle added that buspirone was “working well” for Plaintiff’s anxiety.

(Id.)

• August 29, 2023: Plaintiff endorsed anxiety, depression, and difficulty sleeping.

(Id. at 874-76.)

Given this evidence, the Court finds that the ALJ’s reasons for rejecting Plaintiff’s

anxiety “complaints at step two [were] not substantial enough to meet the clear and convincing

standard when balanced against [Plaintiff’s providers’] contemporaneous observations, some

objective tests[,] and [Plaintiff’s] subjective complaints.” See Webb, 433 F.3d at 687 (making a

similar finding); cf. Buck v. Berryhill, 869 F.3d 1040, 1049 (9th Cir. 2017) (noting that

“[p]sychiatric evaluations may appear subjective, especially compared to evaluation in other

medical fields” and that “[d]iagnoses will always depend in part on the patient’s self-report, as

well as on the clinician’s observations of the patient,” because that is the “nature of psychiatry”)

(simplified).

///

Standing alone, this finding necessitates a remand for further proceedings. (See Tr. 26-27,

determining that Plaintiff’s “physical and mental impairments, considered singly and in

combination, do not significantly limit [her] ability to perform basic work activities” and that as

a result, Plaintiff failed to establish that she has any “severe impairment or combination of

impairments”). Thus, the Court reverses the Commissioner’s decision and remands for further

proceedings because the ALJ’s step-two denial was “premature.” G/anden, 86 F.4th at 848. The

Court “express[es] no view as to whether [Plaintiff] will succeed in proving that [s]he is entitled

to benefits[.]” /d.

CONCLUSION

For the reasons stated, Court REVERSES the Commissioner’s decision and REMANDS

this case to the agency for further administrative proceedings consistent with this opinion.

IT IS SO ORDERED.

DATED this 28th day of July, 2026.

Saez Peecermay

HON. STACIE F. BECKERMAN

United States Magistrate Judge

PAGE 19 —- OPINION AND ORDER

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.

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