## Facts

- Kathy Kohler applied for SSDI and SSI, alleging disability based on bipolar disorder.
- Kohler was diagnosed with bipolar disorder in 1992 and experienced manic episodes requiring hospitalization; she later had medication-related hospitalization and additional manic or hypomanic symptoms.
- After moving to upstate New York, Kohler received ongoing mental-health treatment, including mood-stabilizing medications.
- Kohler’s work history declined substantially after onset; she lacked steady long-term employment after 1991.
- A state agency psychologist reported moderate limitations in social functioning, attention and concentration, completing a normal workday/workweek without symptom-related interruptions, maintaining pace, and interacting with the public.
- An ALJ found bipolar disorder to be a severe impairment but concluded it did not meet or equal a listed impairment and that Kohler retained the residual functional capacity to perform past relevant work.
- The district court affirmed the Commissioner’s denial of benefits, and Kohler appealed.

## Issues

1. Whether the ALJ committed legal error by failing to apply and document the “special technique” required by 20 C.F.R. § 404.1520a (and the parallel SSI regulation) in evaluating a claimed mental impairment.
2. Whether the ALJ’s failure to follow the special technique was harmless on the administrative record.

## Decision

- The Second Circuit vacated the district court’s judgment to the extent it upheld the denial of benefits.
- The court remanded with instructions to remand the matter to the Commissioner for further administrative proceedings.
- The court held the ALJ did not comply with the mandatory special technique for mental impairments.
- The court could not conclude the procedural error was harmless, given record evidence suggesting at least moderate functional limitations that could affect step-three listing analysis and the RFC determination.

## Legal Principles

- When a claimant presents a colorable claim of mental impairment, the ALJ must apply the “special technique” in 20 C.F.R. § 404.1520a (and § 416.920a).
- The technique requires rating functional limitation in four areas: activities of daily living; social functioning; concentration, persistence, or pace; and episodes of decompensation, using the specified rating scales.
- The ALJ must document application of the technique in the written decision, including specific findings as to the degree of limitation in each functional area, to permit meaningful judicial review.
- Failure to apply and document the technique is reversible error unless the record permits a reviewing court to conclude the error was harmless.

## Conclusion

The Second Circuit required remand because the ALJ did not make and document the regulatory functional ratings for Kohler’s mental impairment under the mandatory special technique, and the court could not determine from the record that this omission had no effect on the listing analysis or the residual functional capacity finding.


Kohler v. Astrue, 546 F.3d 260 (2d Cir. 2008)