Lenz v. Kijakazi
- Chief Judge Patrick Schiltz
- 0:23-cv-00779
- U.S. District Court · District of Minnesota
- 3
In Lenz v. Commissioner of Social Security, Chief Judge Schiltz granted plaintiff's attorney's motion for $9,751.50 in net fees from past-due Social Security benefits.
Attorneys who represent Social Security claimants in federal court and seek fees under 42 U.S.C. § 406(b), and claimants whose past-due benefits are used to pay those fees.
What happened
In Lenz v. Commissioner of Social Security (Case No. 23-CV-0779), a Social Security claimant named William L. won his disability case after a federal court sent it back to the Social Security Administration, where an Administrative Law Judge (an agency-level hearing officer) ruled in his favor. His attorney then asked the court to approve attorney's fees of $9,751.50 — the net amount remaining after subtracting $8,500 already paid under a separate federal fee law, out of a total fee of $18,251.50.
Federal law (42 U.S.C. § 406(b)) allows a claimant's attorney to receive up to 25 percent of the claimant's past-due Social Security benefits as a fee. Courts are required to independently assess whether the fee is reasonable, even when the client and attorney have already agreed to it. The court looked at the quality of the representation, the results achieved, and the hours worked.
Chief Judge Patrick J. Schiltz granted the motion, finding the fee reasonable. The attorney spent 52.3 hours on the case, which worked out to roughly $350 per hour — a rate lower than rates other judges in the same district have recently approved. The total fee also did not exceed the 25 percent statutory cap. The $9,751.50 net fee will be paid from the plaintiff's past-due benefits.
The detailed version
- Lenz v. Kijakazi · No. 0:23-cv-00779
- Chief Judge Patrick J. Schiltz
- Aug. 4, 2025
Background
Plaintiff William L. brought a Social Security disability appeal in federal district court. The court previously remanded the case — meaning it sent it back to the Social Security Administration (SSA) for further proceedings. On remand, an Administrative Law Judge (ALJ), the agency-level decision-maker, issued a decision in plaintiff's favor. Plaintiff's counsel then moved for court authorization of attorney's fees under 42 U.S.C. § 406(b), the federal statute governing attorney's fees in Social Security cases paid from a claimant's past-due benefits.
Legal Standard
Section 406(b) caps attorney's fees at 25 percent of the claimant's total past-due benefits. The fee agreement between the plaintiff and counsel is the primary basis for setting the fee, but courts must independently assess whether the agreed-upon fee is reasonable. Under Gisbrecht v. Barnhart, 535 U.S. 789 (2002), factors relevant to that assessment include the quality of representation, results achieved, hours worked, and the effective hourly rate.
The Equal Access to Justice Act (EAJA) separately allows prevailing parties to recover fees from the government in certain cases; any EAJA fees already paid must be offset against a § 406(b) award to prevent double recovery.
Motion and Positions
Counsel sought authorization of a net fee of $9,751.50 — representing a gross § 406(b) award of $18,251.50 minus the $8,500.00 already awarded under the EAJA. The government took no position on the request.
Court's Analysis and Ruling
Chief Judge Schiltz granted the motion. The court found the fee reasonable for the following reasons:
- Results: After the court's remand, the ALJ issued a favorable decision for plaintiff. - Hours and Rate: Counsel spent 52.3 hours on the matter, producing an effective hourly rate of approximately $350 — which the court noted is lower than rates other judges in the District of Minnesota have approved. The court cited Fensterman v. Comm'r of Soc. Sec. (approving $578.48/hour) and Lee R. v. Kijakazi (approving $633.39/hour) as comparators. - Statutory Cap: The total fee of $18,251.50 does not exceed 25 percent of plaintiff's past-due benefits, satisfying the § 406(b) ceiling.
The court ordered that plaintiff's counsel be awarded a net of $9,751.50, payable from plaintiff's past-due benefits.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.