Counsel’s Corner

PWDF Settles Discrimination Suit Against SSA on Behalf of Psychiatrically Disabled Client

By Steven Bruce, PWDF Legal Director

On March 4, 2026, People With Disabilities Foundation (PWDF) reached another notable settlement with the Social Security Administration (SSA) in a case alleging discrimination against a psychiatrically disabled (schizophrenia) individual under Section 504 of the Rehabilitation Act of 1973. Section 504, unlike the Americans with Disabilities Act, applies to federal agencies.

In Doe v. Commissioner of the Social Security Administration, Case No. 3:23-cv-01037 (N.D. Cal. 2026), after 3 years of litigation the parties have filed a settlement agreement (SA) in U.S. District Court. The SSA has historically, since 1978 when Congress applied Section 504 to the federal government and through the present, fought these cases which allege unequal program access, especially for severe psychiatric disabilities, as in the Davis/Doe cases, settled after five years of litigation.

The Plaintiff argued that the SSA continually, over the course of years, discriminated against him by failing to effectively communicate for meaningful program access, which is the legal standard. He was falsely accused of owning $1 million of real estate in Mexico after being found medically disabled based on lifelong schizophrenia on January 24, 2020. A SSA field office bounced him out on the street, where he stayed in shelters and was involuntarily committed to psychiatric hospital wards three times in nearly 2 years, until November 2021, when a U.S. Administrative Law Judge (ALJ) found that he did not own any real estate and was eligible for his Supplemental Security Income benefit checks.

The SSA field office would not permit his right to a reconsidered determination, and his mother, who stated he was “confused and had no documents of ownership” of any real estate, was herself falsely accused of confirming his “confession” to owning the property in Mexico.

His impairments include chronic acute schizophrenia, cognitive challenges, and anxiety. The original ALJ decision (attached), wherein a psychiatrist testified as an expert, set forth numerous communication limitations, but was not read by the SSA field office charged with interviewing him to determine non-medical income and resource eligibility criteria.

The SA affords some reasonable accommodations so Plaintiff can have equal, meaningful access to the SSA’s disability programs under Title XVI (SSI) and Title II of the Social Security Act.

“This is a second major step for human and civil rights for people who have psychiatric disabilities,” says PWDF’s Legal Director and Lead Counsel, Steven Bruce. Bruce also notes, “There have been numerous cases on behalf of people with physical disabilities, but this is one of the first times, as a result of legal action, that a federal agency has agreed to provide reasonable accommodations to individuals with psychosis to allow equal, meaningful program access. Hopefully this case will have a greater impact beyond our client, bringing awareness to the issue and ideally paving the way for millions of other mentally disabled Americans to actually receive reasonable accommodations since PWDF’s 2012 cases (See Terrence Davis v. Michael Astrue, Case No. 3:06-CV-6108 (N.D. Cal.) and John Doe v. Michael Astrue, Case No. 3:09-CV-980 (N.D. Cal.)) for meaningful access to which they are entitled under the law.”

Settlement Agreement March 5 2026

Redacted  1st ALJ Decision

PWDF Profile

Who We Are

People With Disabilities Foundation is an operating 501(c)(3) nonprofit organization based in San Francisco, California, which focuses on the rights of the mentally and developmentally disabled.

Services

Advocacy: PWDF advocates for Social Security claimant’s disability benefits in eight Bay Area counties. We also provide services in disability rights, on issues regarding returning to work, and in ADA consultations, including areas of employment, health care, and education, among others. There is representation before all levels of federal court and Administrative Law Judges. No one is declined due to their inability to pay, and we offer a sliding scale for attorney’s fees.

Education/Public Awareness: To help eliminate the stigma against people with mental disabilities in society, PWDF’s educational program organizes workshops and public seminars, provides guest speakers with backgrounds in mental health, and produces educational materials such as videos.