Sullivan v. Everhart
United States Supreme Court
494 U.S. 83 (1990)
- Written by Nicole Gray , JD
Facts
The Secretary of Health and Human Services, Louis Sullivan (plaintiff), promulgated regulations to implement the Social Security Act’s requirement that the administration determine whether beneficiaries had overpaid or underpaid and make proper adjustments or recover overpaid benefits. The regulations provided that the administration would employ a netting process by calculating the difference between overpayments and underpayments that a claimant has received and assessing a net overpayment or underpayment. A group of beneficiaries (defendants), represented by Everhart, were assessed net underpayments based on the netting process and paid the net underpaid amounts. However, the beneficiaries sued the secretary in a United States district court, alleging the netting regulations were invalid as contrary to the act, violated their procedural due-process rights, and were arbitrary and capricious. Another group of beneficiaries, who were assessed net overpayments and had the opportunities to request waivers of recoupment, intervened. The district court granted summary judgment in favor of the beneficiaries, and a United States court of appeals affirmed. Sullivan requested certiorari.
Rule of Law
Issue
Holding and Reasoning (Scalia, J.)
Dissent (Stevens, J.)
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