Smith v. Commissioner of the Social Security Administration
- Riccardo
- 1:23-cv-02339
- U.S. District Court · Southern District of New York
- 7
E. Smith v. Commissioner: Judge Riccardo granted counsel $23,865 in Social Security fees and ordered a refund of the $6,459.75 EAJA award.
E. Smith, attorney Charles Binder, and the Social Security Administration. The order authorizes payment of $23,865 to Binder from E. Smith’s withheld past-due benefits and requires Binder to refund $6,459.75 to E. Smith.
What happened
In E. Smith v. Commissioner of the Social Security Administration, the Social Security Administration initially denied E. Smith’s benefits claims, but a federal court later sent the case back for further proceedings. After that remand, an administrative judge found E. Smith disabled and awarded $95,460 in past-due benefits.
E. Smith’s agreement with attorney Charles Binder provided for a fee of 25% of past-due benefits. Binder asked the court to approve $23,865 for 26.1 hours of federal-court work. The court found the fee reasonable because the agreement was within the legal limit, there was no evidence of improper conduct, the representation produced a favorable result, and the work did not appear delayed or excessive.
Judge Henry J. Riccardo granted the fee request. The Social Security Administration must pay Binder $23,865 from the withheld benefits, and Binder must return the previously awarded $6,459.75 Equal Access to Justice Act fee to E. Smith after receiving the larger fee.
The detailed version
- Smith v. Commissioner of the Social Security Administration · No. 1:23-cv-02339
- Riccardo
- Sept. 10, 2025
Background
E. Smith applied for Social Security benefits and Supplemental Security Income on February 10, 2020. The Social Security Administration denied the claims. After a hearing, Administrative Law Judge Kimberly L. Schiro determined on September 1, 2021, that E. Smith was not disabled, and the Appeals Council denied further review.
E. Smith then retained attorney Charles Binder and his firm to pursue a federal-court appeal. The retainer agreement provided for Binder to receive 25% of any past-due benefits. E. Smith filed the federal action on March 20, 2023. On May 6, 2024, the court remanded the case for further administrative proceedings. The parties also stipulated to $6,459.75 in attorney’s fees under the Equal Access to Justice Act and $402 in costs.
After the remand, Administrative Law Judge Schiro found E. Smith disabled as of June 5, 2017. The Social Security Administration issued a notice stating that E. Smith was owed $95,460 in past-due benefits and that it had withheld $23,865—25% of those benefits—to pay a representative. Binder then moved under Section 406(b) of the Social Security Act for approval of $23,865 in attorney’s fees for 26.1 hours of work.
Court’s analysis
Section 406(b) permits a court to approve a reasonable fee for an attorney who represented a claimant in federal court, subject to a maximum of 25% of the claimant’s past-due benefits. The court must independently review even an agreed contingency-fee arrangement. It must consider whether the agreement is within the 25% limit, whether fraud or improper pressure affected the agreement, the quality and results of the representation, whether the attorney caused unreasonable delay, and whether the requested fee would be an improper windfall compared with the time spent.
The court found that Binder’s requested fee satisfied those requirements. The fee matched the 25% contingency percentage, and the record showed no fraud or improper pressure. Binder obtained a remand, submitted a detailed memorandum rather than a boilerplate filing, and ultimately helped secure $95,460 in past-due benefits. The court found no unreasonable delay and concluded that the effective hourly rate of $914.37 was reasonable in light of the result and the risk that contingency-fee counsel might not be paid.
EAJA refund
Because Binder had already received $6,459.75 under the Equal Access to Justice Act for the same federal-court work, the court stated that he must return the smaller fee to E. Smith. The refund is due after Binder receives the Section 406(b) fee.
Disposition
Judge Henry J. Riccardo granted the request for attorney’s fees. The Social Security Administration was ordered to pay Binder $23,865 from the withheld past-due benefits, and Binder was ordered to pay E. Smith $6,459.75 upon receiving the Section 406(b) fee.
Read the full 7-page opinion on CourtListener, the free public archive maintained by the Free Law Project.