E.B.E. v. Kijakazi

Background

Stuart T. Barasch of the Olinsky Law Group represented E.B.E. under a contingency-fee agreement providing for 25% of the past-due benefits received as a result of the case. E.B.E. and the Commissioner had filed competing motions for summary judgment. In an earlier order, the court granted E.B.E.’s motion, reversed the Commissioner’s decision, and remanded the matter for further proceedings.

The court had previously approved a stipulated fee award of $14,695.44 under the Equal Access to Justice Act, a law that can require the United States to pay certain fees when its position in litigation was not substantially justified. After the Social Security Administration issued a Notice of Award, counsel sought $40,894.25 under 42 U.S.C. § 406(b), which governs attorney fees for representation in court in Social Security cases.

Requested Fee

The contingency agreement set a 25% ceiling based on past-due benefits. The Notice of Award stated that the Administration had withheld $48,094.25, representing 25% of $192,377 in past-due benefits, to pay an approved representative’s fee. Counsel asked for that $48,094.25 amount minus the $7,200 fee approved at the administrative hearing level, producing the requested $40,894.25.

Counsel submitted records showing 58.5 hours of attorney time and 10.4 hours of paralegal time. The opinion noted that a separate time log included work by staff who were neither attorneys nor paralegals, and the court did not use that additional time to calculate the effective hourly rate.

Court’s Analysis

Under the Supreme Court’s framework, the court first considers the contingency-fee agreement and then evaluates whether the requested fee is reasonable. Relevant considerations include the quality of the representation, the result obtained, delay, and whether the fee is disproportionate to the time spent. A fee under § 406(b) cannot exceed 25% of the past-due benefits and is paid from those benefits rather than added to them.

The court found the request reasonable because counsel presented a valid contingency-fee agreement and reasonable time records. The court found no evidence of substandard work or that the fee was disproportionate to the work performed. It also found that counsel obtained an excellent result while accepting the risk of contingent representation.

Disposition

Judge Joseph C. Spero granted the motion for attorney fees under § 406(b) and awarded counsel $40,894.25. The court ordered that the previously awarded Equal Access to Justice Act amount of $14,695.44 be paid to E.B.E. after counsel receives the § 406(b) fee. This opinion’s ruling concerns an ancillary fee request rather than the underlying Social Security benefits determination.