Summary
The United States District Court for the District of Oregon granted Plaintiff’s unopposed motion for attorney fees under 42 U.S.C. § 406(b) after remand and an award of past-due Social Security benefits. The court approved $16,600.00 in fees, finding the amount reasonable and within the statutory 25% cap. The Commissioner was directed to subtract previously awarded EAJA fees of $2,030.34 and pay the remaining $14,569.66 to Plaintiff’s attorney, Kevin Kerr.
Topics
Practice areas
Questions Presented
- Whether the contingent-fee agreement and requested $16,600.00 fee complied with the 25 percent cap under 42 U.S.C. § 406(b)(1)(A).
- Whether the requested § 406(b) fee was reasonable under Gisbrecht v. Barnhart and the Ninth Circuit's Crawford factors.
- Whether the previously awarded EAJA fee had to be deducted from the § 406(b) award.
Holdings
- A fee agreement for Social Security representation is unenforceable to the extent it provides for fees exceeding 25 percent of the claimant's past-due benefits; the requested $16,600.00 fee was below the 25 percent cap applicable to Plaintiff's $115,674.00 award.
- A court must review a § 406(b) contingent-fee request for reasonableness even when it falls within the 25 percent cap, and the requested $16,600.00 fee was reasonable under the circumstances.
- The § 406(b) award must be reduced by the previously awarded EAJA fees, resulting in a payment of $14,569.66 to Plaintiff's attorney before any applicable processing or user fees.
Key quotations
“Agreements are unenforceable to the extent that they provide for fees exceeding 25 percent of the past-due benefits.” (Legal Standard)
“Even within the 25 percent boundary, however, “the attorney for the successful claimant must show that the fee sought is reasonable for the services rendered.”” (Legal Standard)
Factual background
Plaintiff's counsel represented her in a Social Security benefits case that was remanded for further proceedings. On remand, Plaintiff was awarded $115,674.00 in past-due benefits. Her contingent-fee agreement allowed a fee of up to 25 percent of past-due benefits, and counsel sought $16,600.00 under 42 U.S.C. § 406(b), subject to reduction by the previously awarded $2,030.34 in EAJA fees.
Procedural history
On November 9, 2023, the court remanded the case for further proceedings based on the parties' stipulation. On February 13, 2024, the court awarded Plaintiff $2,030.34 in attorney fees under the Equal Access to Justice Act. On remand, Plaintiff received $115,674.00 in past-due benefits, and counsel sought $16,600.00 under § 406(b), reduced by the prior EAJA award. The court granted the unopposed motion and directed payment of the remaining $14,569.66, subject to applicable processing or user fees.
Remand instructions
The Commissioner must subtract the previously awarded $2,030.34 in EAJA fees from the $16,600.00 § 406(b) award and send the resulting $14,569.66, less applicable processing or user fees, to Plaintiff's attorney. Any amount withheld after all administrative and court attorney fees are paid must be released to Plaintiff.