Dirk M. v. Kijakazi

Background

Dirk M. appealed the Social Security Administration’s denial of disability benefits for physical impairments, including rotator cuff tears in both shoulders, neck pain, and chronic pain syndrome. On March 23, 2022, the court granted Dirk M.’s motion for summary judgment, denied the Commissioner’s motion, and sent the case back for further proceedings.

Dirk M. died while the case was on remand. Her husband was substituted as the claimant. In March 2023, an administrative judge found Dirk M. disabled and entitled to disability insurance benefits. The Social Security Administration later notified the substitute claimant that Dirk M. was entitled to benefits beginning in August 2017 and that the total retroactive award was $105,599. The agency withheld $26,399.75, or 25 percent of the past-due benefits, for attorney’s fees.

Fee request and legal standard

Counsel Harvey Sackett sought $26,399.75 under 42 U.S.C. § 406(b) for work performed in federal court. The contingency-fee agreement allowed counsel to seek up to 25 percent of past-due benefits. Section 406(b) permits a court to approve a reasonable fee of no more than 25 percent of past-due benefits when the court entered a favorable judgment for a Social Security claimant represented by an attorney.

The court explained that it must independently review a contingency-fee request for reasonableness. Relevant considerations include the quality of the representation, any delay by counsel, whether the fee is excessive compared with the benefits obtained, and the risk counsel accepted in taking the case. Fees awarded under Section 406(b) must be reduced by any fees previously awarded under the Equal Access to Justice Act.

Court’s analysis

The court found the requested fee reasonable. The contingency-fee agreement was within the statutory 25-percent limit. The court found no indication of deficient representation or delay designed to increase the fee. It also found that counsel performed substantial work and achieved a favorable result by obtaining a remand that ultimately led to an award of benefits. The court determined that $26,399.75 was not excessive and that counsel had assumed a substantial risk of receiving no fee when the case was filed because the agency had completely denied the requested benefits.

The plaintiff also asked the court to require the Social Security Administration to process the fee payment within 90 days. The court did not issue that requested deadline because the plaintiff cited no supporting authority, and the Commissioner stated that at least part of the payment process was outside the agency’s control.

Disposition

The court granted counsel’s motion for fees. It directed the Commissioner to certify $26,399.75 in Section 406(b) fees payable to Sackett and Associates. It also ordered counsel to refund $5,900 in previously awarded Equal Access to Justice Act fees to the plaintiff.