Summary
The United States District Court for the District of Oregon granted Plaintiff's motion for attorney fees under 42 U.S.C. § 406(b) following a remand and award of past-due Social Security benefits. The court approved the requested fee of $30,504.00, representing 25% of past-due benefits, and directed that previously awarded EAJA fees of $8,224.79 be deducted.
Topics
Practice areas
Questions Presented
- Whether the contingency-fee agreement complied with the 25-percent limit in 42 U.S.C. § 406(b)(1)(A).
- Whether the requested $30,504.00 attorney-fee award was reasonable under § 406(b), considering the character of the representation, the results achieved, delay attributable to counsel, and the possibility of an unwarranted windfall.
Holdings
- A Social Security attorney-fee agreement is enforceable under 42 U.S.C. § 406(b) only to the extent that the requested fee does not exceed 25 percent of the claimant's past-due benefits. The agreement and requested fee in this case satisfied that limit.
- The requested $30,504.00 fee was reasonable and did not constitute an unwarranted windfall, so the court approved the full requested amount subject to subtraction of the previously awarded EAJA fees.
Key quotations
“Courts must approve § 406(b) fee determinations by, first, determining whether a fee agreement has been executed and then testing it for reasonableness.” (Legal Standard)
“Plaintiff’s counsel is awarded fees under 42 U.S.C. § 406(b) in the amount of $30,504.00.” (Conclusion)
Factual background
Plaintiff's counsel represented plaintiff in a Social Security case that resulted in a court-ordered remand and, after further proceedings, an award of $122,016.00 in past-due benefits. The parties' contingency-fee agreement provided for a fee of up to 25 percent of past-due benefits. Counsel sought $30,504.00, which equals 25 percent of the benefits, less the $8,224.79 previously awarded under the EAJA.
Procedural history
On March 31, 2021, the court reversed and remanded the Social Security case for further proceedings. On February 17, 2022, the court awarded plaintiff's counsel $8,224.79 in attorney fees under the Equal Access to Justice Act. Following remand, plaintiff received $122,016.00 in past-due benefits, and counsel sought $30,504.00 under § 406(b), reduced by the prior EAJA award. The court granted the motion and directed payment of the balance after subtracting the EAJA fees and any applicable processing or user fees.