Huey v. Kijakazi

Background

The plaintiff’s attorney filed a petition under 42 U.S.C. § 406(b) seeking $40,714.25 for representing the plaintiff in the federal-court action. The Commissioner of Social Security stated that he neither supported nor opposed the request. The plaintiff was served with the papers but did not file a response.

Legal standard

Section 406(b) allows a court, after entering a judgment favorable to a claimant represented by an attorney, to approve a reasonable fee of up to 25 percent of the claimant’s past-due benefits. The court must independently review the fee arrangement for reasonableness. The attorney requesting the fee has the burden of showing that it is reasonable. A court may reduce a fee for inadequate representation, delay, or a fee that is out of proportion to the time spent and benefits achieved.

Court’s reasoning

The court found that counsel met her burden. Counsel reported spending 52.5 hours litigating the case in federal court, producing an effective hourly rate of approximately $775. Although that rate exceeded counsel’s stated $500 non-contingency hourly rate for unrelated appellate cases, the court recognized that contingency-fee arrangements account for the risk of representing Social Security disability claimants and may result in higher effective hourly rates. The record did not show inadequate representation, delay, or an excessive fee compared with the benefits achieved.

Ruling

Judge Maxine Chesney granted the “Petition for 406(b) Fees” and awarded $40,714.25 in attorney’s fees, to be paid from the plaintiff’s past-due benefits. The order also required plaintiff’s counsel to reimburse the plaintiff $11,182.00 in fees previously obtained under the Equal Access to Justice Act.