Summary
This Opinion and Order from the U.S. District Court for the District of Oregon resolves a plaintiff's motion for attorney's fees under 42 U.S.C. § 406(b) following a successful Social Security disability appeal. The court evaluates the reasonableness of the requested $10,191.00 fee against the statutory twenty-five percent cap on past-due benefits and finds no grounds for reduction. After applying the EAJA savings provision to offset a prior $8,258.00 award, the court grants the motion and directs payment of $1,933.00 in § 406(b) fees.
Topics
Practice areas
Questions Presented
- Whether the requested § 406(b) attorney's fee of $10,191.00 was within the statutory 25 percent cap.
- Whether the contingent-fee agreement and requested fee were reasonable under Gisbrecht and Ninth Circuit precedent.
- Whether the previously awarded EAJA fee of $8,258.00 had to be offset against the § 406(b) award.
Holdings
- The requested $10,191.00 fee was within the statutory maximum because it equaled 25 percent of Plaintiff's $40,764.00 in past-due benefits.
- The requested $10,191.00 § 406(b) fee was reasonable and required no downward adjustment.
- The $8,258.00 EAJA award had to be offset or deducted from the gross § 406(b) award because both awards compensated counsel for the same federal-court work.
Key quotations
“A fee resulting from a contingent-fee agreement is unreasonable, and thus subject to reduction by the court, if the attorney provided substandard representation or engaged in dilatory conduct in order to increase the accrued amount of past-due benefits, or if the ‘benefits are large in comparison to the amount of time counsel spent on the case.’” (Opinion and Order, Legal Standards II)
“Thus, Plaintiff’s attorney is entitled to receive $1,933.00 in § 406(b) fees.” (Opinion and Order, Conclusion)
Factual background
Plaintiff's attorney represented him in a Social Security appeal that resulted in reversal of the Commissioner's decision and remand for further proceedings. The Social Security Administration subsequently awarded Plaintiff $40,764.00 in past-due benefits and withheld 25 percent, or $10,191.00, for a potential representative's fee. Counsel sought the full withheld amount under § 406(b), had previously received $8,258.00 in EAJA fees, and reported 43.05 hours of work on the federal appeal.
Procedural history
Plaintiff filed an action challenging the denial of Disability Insurance Benefits and Supplemental Security Income. On June 27, 2022, the court reversed the Commissioner's decision and remanded for further proceedings, and later awarded $8,258.00 in EAJA fees. After the Social Security Administration awarded $40,764.00 in past-due benefits and withheld $10,191.00, Plaintiff's attorney moved for § 406(b) fees. The court granted the motion, approved the gross § 406(b) fee of $10,191.00, required an $8,258.00 EAJA offset, and authorized payment of $1,933.00.
Remand instructions
The Commissioner was directed to issue Plaintiff's attorney a § 406(b) check from the withheld benefits in the amount of $1,933.00, less any applicable administrative assessment allowed by statute.