Vanlengen v. Commissioner of Social Security

Background

Rena Lane Vanlengen brought the underlying case to challenge the Commissioner of Social Security’s denial of her applications for Supplemental Security Income benefits. In an earlier order dated July 3, 2019, the court reversed the Commissioner’s decision and remanded the case for an award of benefits.

After that ruling, Vanlengen filed two motions seeking attorney fees. One sought fees under the Equal Access to Justice Act, which permits a prevailing party to recover fees from the United States when the government’s position was not substantially justified. The other sought fees under Section 406(b) of the Social Security Act, which allows a court to award a reasonable fee for representation in court, generally capped at 25 percent of the claimant’s past-due benefits.

EAJA Motion

Vanlengen requested $6,686.82 under the Equal Access to Justice Act. The court found that she was the prevailing party because the court had reversed the Commissioner’s decision and remanded for an award of benefits. The Commissioner did not oppose the motion and therefore did not establish that its position was substantially justified. After reviewing counsel’s time records, the court found the requested amount reasonable.

The court granted the Equal Access to Justice Act motion and awarded $6,686.82. The award was made payable to the Olinsky Law Group, subject to any appropriate offset under the Treasury Department’s Offset Program. Because the court also awarded fees under Section 406(b), any Equal Access to Justice Act fees received by counsel must immediately be remitted to Vanlengen.

Section 406(b) Motion

Vanlengen requested $10,144.58 under Section 406(b), representing 25 percent of her past-due benefits. She provided a retainer agreement showing that she had agreed to pay contingent fees equal to 25 percent of any back award, along with evidence that the requested amount equaled 25 percent of that award.

The court granted the Section 406(b) motion and awarded $10,144.58 in fees, payable to the Olinsky Law Group. The court explained that awards under the Equal Access to Justice Act and Section 406(b) may both be made, but the attorney must refund the smaller fee to the claimant. Thus, the Equal Access to Justice Act award offsets the Section 406(b) award.

Disposition

Judge Joseph C. Spero granted both motions for attorney fees. The order did not revisit the underlying benefits decision; it addressed only the requested attorney-fee awards.