N.C.C. v. Frank Bisignano

Summary

The United States District Court for the District of Kansas partially granted and partially denied a motion for attorney fees under 42 U.S.C. § 406(b) in a Social Security case. Although counsel sought $15,993 based on 3.8 hours of work and a 25% contingency-fee agreement, the court found the resulting hourly rate unreasonable and awarded $6,384. The court ordered payment from the claimant’s past-due benefits and required counsel to refund any EAJA fees received.

Holdings

1. A contingent-fee agreement is subject to independent judicial review under 42 U.S.C. § 406(b), and the court may reduce the agreed fee when the resulting award is unreasonable in light of the character and result of the representation, attorney-caused delay, and the benefits obtained compared with the time expended.
2. The Commissioner must pay the § 406(b) attorney-fee award from the amount withheld from plaintiff's past-due benefits.
3. When counsel receives fees under both the EAJA and § 406(b), counsel must refund to the plaintiff the smaller fee amount.

Questions Presented

1. Whether counsel's requested fee of $15,993, representing 25% of plaintiff's past-due benefits, was reasonable under 42 U.S.C. § 406(b).
2. Whether the court should direct that the § 406(b) fee be paid from the past-due benefits withheld by the Commissioner.
3. Whether counsel must refund the smaller EAJA fee after receiving the § 406(b) award.

Disposition

other