Kelly v. Commissioner of Social Security
- Laurel Beeler
- 3:20-cv-07821
- U.S. District Court · Northern District of California
- 3
In Kelly v. Kijakazi, Judge Beeler approved $13,500 in counsel fees from past-due Social Security benefits and required a $3,222 Equal Access to Justice Act refund.
Dana Preston Kelly and his lawyer; the ruling authorized payment of $13,500 in fees from Kelly’s past-due Social Security benefits and required the lawyer to refund $3,222 previously received under the Equal Access to Justice Act.
What happened
In Kelly v. Kijakazi, the court had previously ruled for Dana Preston Kelly and sent his Social Security case back to the agency for further proceedings. Kelly then received past-due benefits, and his lawyer asked for $13,500 under their 25-percent fee agreement.
The court said the requested fee was within the legal 25-percent limit and reviewed whether it was reasonable. The court considered the results achieved, the quality and timing of the lawyer’s work, the time spent, and the risk of taking the case. The Commissioner did not agree or object to the request.
Judge Laurel Beeler granted the motion and approved the $13,500 fee. Because the lawyer had already received $3,222 under the Equal Access to Justice Act, the lawyer had to refund that amount to Kelly, leaving a net fee of $10,278.
The detailed version
- Kelly v. Commissioner of Social Security · No. 3:20-cv-07821
- Laurel Beeler
- Aug. 31, 2022
Background
The court previously granted Dana Preston Kelly’s motion for summary judgment in his Social Security appeal and remanded the case to the Social Security Administration for further proceedings. After the remand, Kelly received an award of past-due benefits.
Kelly’s lawyer moved for an attorney’s-fee award of $13,500 under 42 U.S.C. § 406(b). The Commissioner withheld 25 percent of Kelly’s retroactive benefits, or $17,437.53. Kelly’s representation agreement provided for a 25-percent contingency fee based on the award. The lawyer had already received $3,222 under the Equal Access to Justice Act and agreed to refund that amount to Kelly. The Commissioner stated that he did not assent or object to the requested fee.
Legal standard
Section 406(b) allows a court to approve a reasonable fee for a claimant’s lawyer when the court has entered a judgment favorable to the claimant. The fee may not exceed 25 percent of the claimant’s past-due benefits. The court may calculate the fee using benefits awarded after a remand for further proceedings.
Even when a fee agreement is within the statutory 25-percent limit, the court must independently review the request for reasonableness. Relevant considerations include the quality of the representation, the results achieved, any delay caused by the lawyer, whether the fee is out of proportion to the time spent, and the risk the lawyer assumed by accepting the case. The court must also offset the § 406(b) award by fees previously awarded under the Equal Access to Justice Act.
Ruling
The court found that the 25-percent contingency-fee agreement was within the statutory limit and that the requested amount was reasonable. Judge Laurel Beeler granted the motion and approved a § 406(b) fee award of $13,500. The lawyer had to refund the $3,222 Equal Access to Justice Act fee to Kelly, resulting in a net remaining fee award of $10,278.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.