Serra v. Martin O’Malley

Background

Narciso Guerra Serra brought an action seeking review of the Commissioner of Social Security’s decision denying benefits. On January 16, 2025, the court remanded the case under sentence four of 42 U.S.C. § 405(g) for additional proceedings, including further evaluation of Serra’s residual functional capacity and the sequential evaluation process. After those proceedings, the Commissioner issued a favorable decision, and Serra received more than $100,000 in past-due benefits.

Serra had signed a written contingent-fee agreement with the Law Office of Katherine Siegfried. The agreement allowed counsel to seek up to 25% of past-due benefits for appellate work if Serra later won benefits, subject to approval by the Social Security Administration or the federal court. Siegfried sought $14,500 under § 406(b) of the Social Security Act. The Social Security Administration had withheld $29,028.75, representing the balance of 25% of Serra’s and any eligible family members’ past-due benefits, pending payment of an authorized attorney fee.

Earlier Equal Access to Justice Act Award

The court had also approved an $11,080 attorney-fee award and $405 in costs under the Equal Access to Justice Act. The Treasury Department later applied the entire $11,080 fee payment to Serra’s delinquent non-tax federal debt owed to the Small Business Administration. Because that fee had been offset, the court determined that Siegfried was not required to refund any Equal Access to Justice Act fees in this matter.

Court’s Analysis

Section 406(b) permits a federal court to award a reasonable fee for an attorney’s representation in a successful benefits case, up to 25% of the claimant’s past-due benefits. The court must independently review the requested fee for reasonableness, even when the request falls within the statutory limit and the parties have a contingent-fee agreement.

The court found that Siegfried met that burden. The 25% agreement was consistent with the statutory cap, there was no evidence of substandard performance, and the representation produced a favorable result and more than $100,000 in past-due benefits. Siegfried reported spending 49.45 hours on the case, producing an effective hourly rate of less than $300. The court also considered the substantial risk involved in contingent-fee representation.

Disposition

The court GRANTS counsel’s motion for attorney fees. It directs the Commissioner to certify $14,500 under 42 U.S.C. § 406(b), payable to Katherine Siegfried. The fees are to be paid from Serra’s past-due benefits according to agency policy, to the extent those benefits are available and have not been used to pay an attorney fee under § 406(a).