Lieberman v. Bisignano

Background

This Report and Recommendation addressed Lisa Lieberman’s supplemental motion for attorney’s fees under 42 U.S.C. § 406(b), which permits a court to award reasonable fees for an attorney’s work representing a Social Security claimant in federal court. Lieberman was represented by Christopher J. Bowes, Esq. Her two contingent-fee agreements provided for attorney’s fees equal to 25 percent of past-due benefits payable to her and her auxiliary beneficiaries.

After the case was sent back to the Social Security Administration for further proceedings, an Administrative Law Judge found on February 13, 2025, that Lieberman was disabled as of December 15, 2006, and entitled to benefits. An earlier recommendation, later adopted by the district court, awarded Bowes $123,203 from Lieberman’s past-due benefits and required him to refund $17,250 in previously received fees under the Equal Access to Justice Act.

The Social Security Administration later issued notices awarding auxiliary, or child’s, benefits to Lieberman’s two daughters, identified in the opinion as C1 and C2. C1 was awarded $125,101 in total past-due benefits, with $31,275.25 withheld for attorney’s fees. C2 was awarded $44,571 in total past-due benefits, with $11,142.75 withheld. Bowes sought the withheld amounts, totaling $42,418.

Court’s analysis

The court found the motion timely because Bowes received the benefit notices on August 20, 2025, and filed the motion 13 days later, on September 2, 2025. The court explained that § 406(b) fees cannot exceed 25 percent of past-due benefits and must also be reasonable.

The court concluded that the requested fees did not exceed the 25-percent limit and found no evidence of fraud or overreaching in the fee agreements. It relied on its earlier reasonableness analysis, concluding that Bowes had not caused unreasonable delay, that the requested amount matched the successful results achieved, and that the combined fees did not constitute an improper windfall. The court noted that Bowes had worked 85.2 hours on the two federal actions and that the combined fees would produce an effective hourly rate of approximately $1,943.91, which it found to be within the range approved in the Second Circuit despite being high.

Recommendation and next steps

Magistrate Judge Andrew E. Krause recommended that Lieberman’s supplemental motion for attorney’s fees be GRANTED and that Bowes be awarded $42,418, paid from the daughters’ auxiliary benefits: $31,275.25 from C1’s award and $11,142.75 from C2’s award, in accordance with Social Security Administration policy. The document is a Report and Recommendation addressed to District Judge Nelson S. Román, not a statement that the district judge had already entered a final ruling on this supplemental motion. The parties had 14 days after service to file objections, and a party could respond to objections within 14 days after being served.