Debra Grimsley v. Frank Bisignano, Commissioner of Social Security

Summary

The United States District Court for the Middle District of Pennsylvania considers Debra Grimsley’s motion for attorney’s fees under 42 U.S.C. § 406(b) following a remand and favorable Social Security disability determination. The court finds that the requested $15,422 fee would constitute a windfall and reduces the award to $12,165, based on 13.85 hours of work at a de facto rate of $900 per hour. The court also directs that Grimsley receive repayment of the previously awarded $3,450 EAJA fee.

Holdings

1. A fee award under § 406(b) may not exceed 25 percent of past-due benefits and is not automatically warranted at that maximum; the attorney must establish that the requested fee is reasonable for the services rendered.
2. A lodestar calculation may inform the court's assessment of reasonableness, but reducing a § 406(b) fee solely by beginning with or mechanically applying a lodestar analysis is not appropriate.
3. The requested $15,422 fee would constitute an inappropriate windfall, but a fee of $12,165, calculated at $900 per hour for 13.85 hours, was reasonable in light of the representation, results, risk, fee agreement, and customary rates.
4. When an attorney receives fees under both the EAJA and § 406(b), the attorney must refund to the claimant the amount of the smaller fee.

Questions Presented

1. Whether the requested contingent-fee award under 42 U.S.C. § 406(b) was reasonable.
2. Whether the requested award would constitute an improper windfall when measured against the time expended, counsel's customary rate, the results achieved, and the risks undertaken.
3. Whether Grimsley was entitled to repayment of the previously awarded EAJA fee after approval of the § 406(b) fee.

Disposition

other