Lieberman v. Bisignano

Background

Lisa Lieberman brought this action under 42 U.S.C. § 405(g), which permits judicial review of a Social Security decision. She challenged the Commissioner’s denial of her application for Social Security disability benefits. After extended litigation, Lieberman prevailed and was found disabled as defined by the Social Security Act, with disability beginning in December 2006.

The Social Security Administration notified Lieberman on March 5, 2025, of her past-due benefits and withheld approximately 25 percent, or $123,203.00, for attorney’s fees. Lieberman had retained Christopher J. Bowes under a contingency-fee agreement. In an earlier fee proceeding, the court awarded Bowes $123,203.00 in fees from Lieberman’s past-due benefits, less $17,250.00 that he had previously received for litigating the action.

On August 16, 2025, the Administration issued a notice awarding dependent child benefits to Lieberman on behalf of her two minor daughters. The younger daughter was awarded $93,825.75, with $31,275.25 withheld for attorney’s fees. The older daughter was awarded $33,428.25, with $11,142.75 withheld. Bowes then filed a supplemental motion seeking additional fees connected to those awards under 42 U.S.C. § 406(b).

Magistrate Judge’s Recommendation and Review

Magistrate Judge Andrew E. Krause recommended granting the supplemental fee motion. Neither Lieberman nor the Commissioner filed objections within the applicable period. The district court therefore reviewed the recommendation for clear error, meaning an obvious mistake in the record or reasoning.

The court found no clear error. The recommendation applied the requirement that contingency fees in Social Security cases cannot exceed 25 percent of the claimant’s past-due benefits and that any fee awarded must be reasonable. The relevant considerations included whether the fee agreement involved overreaching or fraud, whether the fee was disproportionate to the representation and results achieved, whether counsel caused delay, and whether the requested amount would be an improper windfall compared with the time spent on the case.

Disposition

The court adopted Magistrate Judge Krause’s report and recommendation in its entirety and granted Plaintiff’s counsel’s motion seeking additional reasonable attorney’s fees. It awarded Bowes $42,418.00, to be paid from the benefits awarded to Lieberman on behalf of her two daughters and withheld by the Social Security Administration. The amounts were $31,275.25 from the younger daughter’s award and $11,142.75 from the older daughter’s award. The Clerk was directed to terminate the motion at ECF No. 58.