Gustavo S. v. Kijakazi

Background

Gustavo S. challenged the Social Security Administration’s denial of disability benefits based on physical impairments that included degenerative disc disease of the lumbar spine, chronic pain disorder, and obesity. The court granted the parties’ joint request to send the case back to the agency for further proceedings under sentence four of 42 U.S.C. § 405(g). After the remand, the agency found Gustavo S. disabled.

The court had previously awarded $5,000 in attorney’s fees under the Equal Access to Justice Act. Counsel also received $6,555 for work performed at the administrative level. Under the contingency-fee agreement, counsel could seek up to 25% of Gustavo S.’s past-due benefits. The Social Security Administration withheld $18,106.23 from the benefits award for attorney’s fees, and counsel sought $11,551.23 for work performed in federal court under 42 U.S.C. § 406(b).

Legal standard

Section 406(b) allows a court to approve a reasonable fee for an attorney who represented a Social Security claimant in court, subject to a limit of 25% of the claimant’s past-due benefits. The court must independently review the requested fee to ensure that the contingency-fee agreement produces a reasonable result. Relevant considerations include the quality of the representation, the result achieved, whether the attorney delayed the case to increase the fee, and whether the requested amount is excessive in relation to the work performed.

A Section 406(b) fee award must be reduced by any fee previously awarded under the Equal Access to Justice Act. The attorney must refund the earlier Equal Access to Justice Act payment to the claimant.

Court’s reasoning

The court found the requested $11,551.23 reasonable. The contingency-fee agreement complied with the 25% statutory limit. The court found no indication of substandard representation or delay intended to increase the fee. It also concluded that counsel had performed substantial work and achieved a favorable result when the Commissioner agreed to remand the case after counsel filed a motion for summary judgment.

The court further found that the requested amount was not excessive and that counsel had undertaken a substantial risk of not being paid because the agency had initially denied all requested benefits.

Disposition

The court GRANTS the motion for attorney’s fees. It directed the Commissioner to certify $11,551.23 in fees under Section 406(b), payable to the Law Office of Geri N. Kahn. It ordered counsel to refund the previously awarded $5,000 in Equal Access to Justice Act fees to Gustavo S. The order disposed of Docket No. 30.