David C. Haenner v. Commissioner of Social Security, sued as Frank Bisignano, Commissioner of the Social Security Administration

Summary

The court grants counsel’s motion for attorney fees under 42 U.S.C. § 406(b) following a remand and subsequent award of Social Security disability benefits. It authorizes $36,083.25, representing 25 percent of the claimant’s $144,333.00 in past-due benefits, and finds the requested fee reasonable. Counsel must refund the previously awarded EAJA attorney fees and costs to the claimant.

Holdings

1. A court may authorize a contingent § 406(b) fee when it does not exceed 25 percent of the claimant's past-due benefits and is reasonable in light of the fee agreement, the character of the representation, the results achieved, any attorney-caused delay, and the circumstances of the effective hourly rate. The requested $36,083.25 fee was within the statutory cap and reasonable under the circumstances.
2. When counsel receives both EAJA fees and a § 406(b) fee award, counsel must refund to the claimant the amount of the smaller fee; here, counsel must refund the $3,960.38 in EAJA attorney fees and the $402.00 in EAJA costs.

Questions Presented

1. Whether counsel's requested fee of $36,083.25 was reasonable and within the 25-percent limitation imposed by 42 U.S.C. § 406(b)(1)(A).
2. Whether counsel was required to refund the previously awarded EAJA fees and costs to Haenner after receiving the § 406(b) fee.

Disposition

other