Cantera v. Saul

Background

Faustino Cantera filed an action seeking judicial review of the final denial of his application for disability benefits. After Cantera moved for summary judgment, the parties agreed to send the matter back for further administrative proceedings before an administrative law judge. They also agreed to attorney’s fees of $6,960.63 and $400 in court costs under the Equal Access to Justice Act.

After the remand, the administrative law judge awarded Cantera $115,739.50 in past-due benefits. Andrew Koenig, who represented Cantera in the federal case and the administrative proceedings, had a contingency-fee agreement providing for 25% of the past-due benefits. Koenig requested $22,934.88 under 42 U.S.C. § 406(b), which governs fees for successful representation in federal court. The request reflected 25% of the past-due benefits, less $6,000 already paid for representation in the administrative proceedings.

Court’s analysis

The court explained that section 406(b) permits a fee of up to 25% of past-due benefits and requires the court to independently review a contingency-fee agreement for reasonableness. The court considered the quality of the representation, the result achieved, any delay, and whether the requested fee would be an improper windfall.

The court found the requested amount reasonable. It was just under 20% of Cantera’s past-due benefits and within the statutory limit. The record and Koenig’s time records did not show substandard work or delay. Koenig reported 34.9 hours of work in federal court, making the effective hourly rate $657.16, which the court found within the range of effective hourly fees previously awarded in the district.

Disposition

The court GRANTED Koenig’s motion for attorney’s fees and awarded him $22,934.88 under section 406(b). The court also ORDERED Koenig, upon receiving that fee, to refund $6,960.63 in Equal Access to Justice Act fees to Cantera.