Larson v. Astrue, No. 09-4037; -- F.3d --, No. 09-4037 (7th Cir. Aug. 3, 2010)

Remanded for an Award of Benefits

The Appeals Court held that the ALJ failed to give controlling weight to the opinion of the claimant's treating physician where the treating physician's opinion was not inconsistent with the medical record as a whole. If the treating physician's opinion had been properly credited the claimant's condition would have been recognized as a listed impairment.

An incidient-such as hospitalization or placement in a halfway house-that signals the need for a more structure psychological support system would qualify as an episode of decompensation for purposes of meeting Part B of the SSL 12.04.

The court stated, inter alia, that there is a significant difference between being able to work a few hours a week for a friend who tolerated frequent breaks and absences and having the capacity to work full time.