i gather from your post that you have been told that an IB decision was given around October 2004, but not implemented by IS. it is worthwhile finding out precisely what errors occurred - did IB section fail to notify IS, or did IS fail to action the notification? - and what record of a date of issue of IB disallowance notice is held? i think this is usually a clerical notification - if IS weren't notified, other errors could have been made, eg client not notified. what discovery has now prompted action by IS?
also, was there any change of address or problems with the address at the time?
i would have expected client to have been asked to give her reasons for not attending before disallowance was made. not receiving the notification of the medical would normally be accepted as good cause, and another medical arranged, rather than disallowance - both such an enquiry, and the disallowance notice would have alerted her to the problem of the missing medical notification, and prompted action. it's possible no enquiry was sent, but worth finding out. also, did client satisfy any other conditions of entitlement for IS?
if you can obtain back dated medical evidence of incapacity from the date of the decision, you may be able to persuade IB section that decision that she failed to attend a medical exam without good cause should be revised as erroneous (no consideration of good cause), but much may depend on what can be reconstructed of the actual events, and balance of probabilities...it's probably a good idea to submit new claim and backdated med ev in any event, for disability premium.
if entitlement to IB and /or housing costs is lost because a disallowance notice wasn't issued, you may have a case for extra-statutory payment to make good the loss - all of this may be over-optimistic, and if it comes down to no more than she says she did not receive notifications which were in fact issued, it's much more difficult... hope this is some help
jj
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