James T. v. Frank Bisignano, Commissioner of Social Security

Summary

The United States District Court for the Southern District of California granted the parties’ amended joint motion under Federal Rule of Civil Procedure 60(b), vacated its prior attorney-fee order, and issued an amended order. The court approved $36,502 in attorney’s fees under 42 U.S.C. § 406(b), representing 25% of the claimant’s past-due benefits, and required counsel to refund the lesser EAJA award to the claimant.

Holdings

1. Relief was warranted because the prior fee award was calculated from an initial Notice of Award rather than the updated Notice of Award, and the original amount therefore exceeded 25 percent of Plaintiff's actual past-due benefits.
2. The requested $36,502 fee was reasonable and was approved because it equaled 25 percent of the updated past-due benefits, counsel achieved a favorable result without substandard performance or delay, and the fee was not excessive in relation to the benefits obtained.
3. Counsel must refund to Plaintiff the lesser of the § 406(b) fee and the EAJA fee because both awards compensated the same work.

Questions Presented

1. Whether relief under Federal Rule of Civil Procedure 60(b)(1) should be granted to vacate the prior § 406(b) fee order because it was based on an outdated Notice of Award.
2. Whether counsel's requested fee of $36,502 was reasonable under 42 U.S.C. § 406(b) and did not exceed the statutory 25-percent ceiling.
3. Whether counsel must refund the lesser of the § 406(b) fee and the EAJA fee to Plaintiff to prevent double recovery for the same work.

Disposition

vacated