Matthew H. v. Kijakazi

Background

Matthew H.’s case began with an appeal from the Social Security Administration’s denial of disability benefits for physical impairments including osteoporosis, seizure disorder, alcohol abuse, and hyperparathyroidism. After Matthew H. moved for summary judgment, the government did not oppose the motion and instead agreed to a voluntary remand under 42 U.S.C. § 405(g), sentence four. The court later awarded $6,500 in fees under the Equal Access to Justice Act.

After the remand, the Social Security Administration found Matthew H. disabled as of January 1, 2019 and awarded $72,234 in past-due benefits. The agency withheld 25 percent, or $18,058.50, for attorney’s fees. Counsel had already received $7,200 under 42 U.S.C. § 406(a) for work performed in the administrative proceedings. Under the contingency-fee agreement, counsel could seek up to 25 percent of Matthew H.’s past-due benefits for the work covered by the agreement.

Attorney’s-fee request

Counsel sought $10,858.50 under § 406(b) for work performed in federal court. Counsel agreed to return the $6,500 previously awarded under the Equal Access to Justice Act and offered to return an additional $715 because two requested continuances caused a 72-day delay. The Commissioner took no position on the motion.

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 the fee agreement for reasonableness. Relevant considerations include the quality of the representation, delays intended to increase fees, whether the fee is excessive compared with the benefits obtained, and the risk counsel accepted by taking the case. Fees awarded under § 406(b) must also be reduced by any fees awarded under the Equal Access to Justice Act.

Court’s analysis

The court found the requested fee reasonable. The contingency-fee agreement was within the 25-percent statutory limit. The court found no indication of substandard representation or intentional delay to increase fees. Counsel performed substantial work and obtained a favorable result when the Commissioner agreed to remand the case after Matthew H.’s summary-judgment motion.

The court accepted the $715 reduction, but it stated that the amount should not be awarded and should instead remain with the Social Security Administration for release to Matthew H. The court also found that the remaining requested fee was not excessive and that counsel had assumed substantial risk because the agency had initially denied all requested benefits and counsel could not know that the Commissioner would agree to a remand.

Disposition

Judge Jacquelyn Scott Corley granted counsel’s motion for fees under § 406(b). The Commissioner was directed to certify $10,143.50 in fees payable to The Law Offices of Patricia L. McCabe. Counsel was ordered to refund Matthew H. the previously awarded $6,500 in Equal Access to Justice Act fees. The order disposed of Docket No. 27.