Melissa J. v. Saul

Background

Melissa J. appealed the Social Security Administration’s denial of disability benefits based on mental and physical impairments, including foot pain, an ankle sprain, a lower-back impairment, depression, and panic disorder with agoraphobia.

On June 16, 2020, the court approved the parties’ joint agreement to remand the case to the agency for further proceedings under sentence four of 42 U.S.C. § 405(g). On June 25, 2020, the court awarded counsel $5,200 under the Equal Access to Justice Act, a law that permits certain fee awards against the government.

After the remand, the agency found Melissa J. disabled and awarded benefits beginning December 15, 2012. The agency later stated that she would receive $72,082.00 in past-due benefits and withheld $18,020.50, described as 25 percent of the past-due award, for attorney’s fees. Under the contingency-fee agreement, counsel could seek up to 25 percent of the past-due benefits. Counsel requested $18,020 for work performed in the district court.

Legal standard

Under 42 U.S.C. § 406(b), a court may approve a reasonable fee for an attorney who represented a Social Security claimant in court when the claimant receives a favorable judgment. The fee may not exceed 25 percent of the claimant’s past-due benefits. The court must independently review the fee agreement to ensure that it produces a reasonable result.

The court may consider whether the attorney provided inadequate representation, delayed the case to increase fees, requested an excessive amount compared with the benefits obtained, or accepted substantial risk by taking the case. Any fee awarded under Section 406(b) must be offset by fees previously awarded under the Equal Access to Justice Act.

Analysis and ruling

The court found the requested $18,020 reasonable. The contingency-fee agreement was within the statutory 25-percent limit. The court found no indication of inadequate representation or delay, and it noted that counsel performed substantial work and obtained a favorable result when the Commissioner agreed to remand the case. The court also found that the requested amount was not excessive and that counsel had faced a substantial risk of receiving no fee when the action began.

The court granted counsel’s motion for attorney’s fees under Section 406(b). It directed the Commissioner to certify $18,020 payable to the Law Offices of Katherine Siegfried. It also ordered counsel to refund the previously awarded $5,200 in Equal Access to Justice Act fees to Melissa J.