James F. v. King

Background

James F. appealed the Social Security Administration’s denial of his application for disability benefits based on ischemic heart disease, chronic joint pain associated with psoriatic arthritis, severe cervical-spine stenosis and degeneration, and a nonsurgically fused left wrist. He filed a motion for summary judgment. The government did not oppose the motion and instead stipulated to a voluntary remand under sentence four of 42 U.S.C. § 405(g). The court granted that remand.

After the remand, the Administration found James F. disabled. He was notified that he had been awarded benefits beginning in February 2018, including $175,661.70 in past-due benefits. The Administration withheld $43,915.40—25 percent of the past-due benefits—for attorney’s fees. James F. and his counsel had a contingency-fee agreement permitting counsel to seek up to 25 percent of the past-due benefits. Counsel moved for $43,915.40 under 42 U.S.C. § 406(b). The Commissioner took no position on the motion.

Legal standard

Section 406(b) allows a court to approve a reasonable fee for an attorney who represented a Social Security claimant in court, subject to a limit of 25 percent of the claimant’s past-due benefits. The court must independently review a contingency-fee agreement to ensure that it produces a reasonable result. Relevant considerations include the quality of the representation, the results achieved, any delay intended to increase fees, and whether the requested fee is excessive compared with the work performed.

The court must also offset a Section 406(b) fee award by any fees previously awarded under the Equal Access to Justice Act, a federal law that permits fee awards against the government in qualifying cases.

Court’s analysis

The court found the requested fee reasonable. The contingency-fee agreement stayed within the 25-percent statutory limit. The court found no indication that counsel performed below the required standard or delayed the case to increase the fee. Instead, counsel performed substantial work and obtained a favorable result when the Commissioner agreed to a voluntary remand after the summary-judgment motion was filed.

The court also found that $43,915.40 was not excessive in relation to the benefits awarded. It further noted that counsel accepted a substantial risk of receiving no fee because the Administration had initially denied all requested benefits.

Disposition

The court GRANTS Plaintiff’s counsel’s motion for fees. It directed the Commissioner to certify $43,915.40 in Section 406(b) fees payable to The Law Office of Jared T. Walker. Counsel must refund the previously awarded $11,051.39 in Equal Access to Justice Act fees to James F. The order disposes of Docket No. 31.