Martinez v. Commissioner of Social Security

Background

Kristal Marie Martinez brought the case under 42 U.S.C. § 405(g) to challenge the denial of Social Security benefits. The court had remanded the matter for further review by the Commissioner of Social Security and had approved a stipulation awarding Martinez’s lawyer $8,754.00 in fees under the Equal Access to Justice Act (EAJA).

After the remand, the Social Security Administration awarded Martinez $91,042.00 in retroactive benefits. On February 7, 2025, her lawyer timely asked the court for $22,760.50 in fees under 42 U.S.C. § 406(b). That amount equals 25% of Martinez’s past-due benefits. Counsel reported billing 37.8 hours, producing an effective hourly rate of $600.54.

Court’s analysis

Section 406(b) allows a court to approve a reasonable fee of no more than 25% of a claimant’s past-due benefits. The court asked the Commissioner to address whether the requested fee would be an improper windfall. The Commissioner responded that the $600.54 effective hourly rate was reasonable and lower than recent awards in the district.

The court agreed. It found that counsel’s 37.8 hours were within the standard range for a Social Security case and noted that the work included reviewing an 897-page administrative record, researching, and filing a 25-page brief.

Ruling

Judge Sarah Netburn determined that the requested award was reasonable and granted attorney’s fees in the amount of $22,760.50. The award represents 25% of Martinez’s past-due benefits. Because Martinez had also received the earlier $8,754.00 EAJA award, the court directed her lawyer to refund that earlier fee directly to Martinez upon receiving the § 406(b) award.