J.G. v. Bisignano

Background

J.G. sought judicial review of the Social Security Administration’s denial of his applications for disability insurance benefits and supplemental security income. In an earlier order, the Court granted J.G.’s motion for summary judgment, denied the Commissioner’s cross-motion for summary judgment, and remanded the case for further administrative proceedings. The Court later approved an award of $11,440 in attorney’s fees under the Equal Access to Justice Act.

After the remand, the Social Security Administration determined that J.G. was entitled to $89,389 in past-due benefits. The agency withheld $22,347.25, which represented 25% of those benefits, for possible payment of attorney’s fees. J.G. and his lawyer, Katherine Siegfried, had entered into a contingency-fee agreement providing for a fee of 25% of past-due benefits resulting from a successful appeal.

The Commissioner took no position on whether the requested fee was reasonable but asked that, if fees were awarded, Ms. Siegfried be directed to reimburse J.G. for any fee previously received under the Equal Access to Justice Act. J.G. did not file an objection or other response to the motion.

Legal standard

Under 42 U.S.C. § 406(b), a court may award a reasonable fee for an attorney’s representation in federal court, up to 25% of the claimant’s past-due benefits. The court reviews the contingency-fee agreement independently to determine whether the resulting fee is reasonable. Relevant considerations include the quality of the representation, the result achieved, whether the attorney engaged in delay or provided substandard representation, and whether the benefits are unusually large compared with the time spent.

A court may award fees under both § 406(b) and the Equal Access to Justice Act, but the attorney must refund the claimant the smaller fee.

Ruling

The Court found that Ms. Siegfried’s requested fee was reasonable. The fee agreement stayed within the 25% statutory limit, and Ms. Siegfried successfully pursued J.G.’s appeal and obtained a result that entitled J.G. to substantial past-due benefits dating back to 2017. The record did not show substandard performance or delay intended to increase the fee.

Ms. Siegfried documented 53.8 hours of work. The requested fee produced an effective hourly rate of $415.38, below the $500 hourly rate she reported for noncontingent matters. The Court found the time spent reasonable and also recognized the risk she assumed by representing J.G. on a contingency basis.

The Court granted the motion for attorney’s fees under § 406(b), awarded Ms. Siegfried $22,347.25 to be paid from J.G.’s past-due benefits, and ordered her to refund J.G. the previously awarded $11,440 Equal Access to Justice Act fee.