ADMINISTRATIVE LAW JUDGE

Where the record is patently inadequate to support the findings the ALJ made, application of res judicata is tantamount to a denial of due process. Fairness in the administrative process is more important than finality of administrative judgments. Because these two policies conflict here, res judicata is inappropriate.

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This appeal does not involve the issue, discussed in Davis v. Schweiker, decided this day, of whether a claimant whose application is barred by res judicata is entitled to a review of the Secretary's refusal to reopen the case. Here the ALJ improperly invoked the res judicata doctrine.

Thompson's disability claim warrants a full, fair, and adequate hearing. The record of the prior hearing was inadequate.

The ALJ's denial of Thompson's SSI claim is reversed and the Secretary is directed to grant appropriate SSI benefits to Thompson. The denial of Thompson's disability claim on the ground of res judicata is reversed and this claim remanded to the Secretary with instructions to conduct an appropriate hearing.

Reversed in part and remanded in part.