C.L. v. Martin J. O'Malley

Background

The court previously granted C.L.’s motion for summary judgment and remanded the Social Security case to the Social Security Administration for further proceedings. On remand, the agency awarded C.L. $57,042 in past-due benefits.

C.L.’s attorney sought $14,260.50 under 42 U.S.C. § 406(b). The amount represented 25 percent of the past-due benefits and matched the contingency-fee agreement between C.L. and her attorney. The Commissioner did not oppose the motion but requested an order requiring the attorney to refund to C.L. the $10,500 previously awarded under the Equal Access to Justice Act.

Legal standard

Section 406(b) permits a court to award a claimant’s attorney a reasonable fee when the court has entered a favorable judgment in a Social Security case. The fee may not exceed 25 percent of the past-due benefits. The court must independently review the fee agreement and the results achieved to determine whether the requested amount is reasonable. Relevant considerations include the quality of the representation, attorney-caused delay, whether the fee is disproportionate to the time spent, and the risk counsel accepted in taking the case.

The court also explained that a § 406(b) fee must be offset by any Equal Access to Justice Act fee award. C.L.’s attorney agreed that the requested fee was subject to that offset.

Ruling

The court found that the 25-percent fee agreement complied with the statutory limit and that $14,260.50 was reasonable. The court granted the motion for attorney’s fees under § 406(b) and ordered C.L.’s attorney to refund the $10,500 Equal Access to Justice Act award to C.L. The resulting remaining fee award was $3,760.50. Judge Laurel Beeler ordered that the decision take effect.