The following excerpt is from Terwilliger v. Shalala, 105 F.3d 666 (9th Cir. 1997):
The same holds true for the testimony of a claimant's friends and family members in a position to observe the claimant's symptoms and daily activities. Such evidence may only be rejected by making specific credibility findings that are supported by substantial evidence in the record. Dodrill, 12 F.3d at 918-19; see also Sprague v. Bowen, 812 F.2d 1226, 1232 (9th Cir.1987) ("Disregard of this evidence violates the Secretary's regulation that he will consider observations by nonmedical sources as to how an impairment affects a claimant's ability to work. 20 C.F.R. 404.1513(e)(2).").
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