Rosalinda M. v. Commissioner of Social Security

Background

Rosalinda M. appealed the Social Security Administration’s denial of disability benefits based on mental and physical impairments, including osteoarthritis and high blood pressure. On April 1, 2020, the court granted her motion for summary judgment, denied the Commissioner’s motion, and remanded the case for further proceedings. The parties later stipulated to an award of $6,850 in attorney’s fees under the Equal Access to Justice Act.

After the remand, the Social Security Administration found Rosalinda M. disabled. The agency notified her on November 6, 2023, that she was entitled to benefits beginning in January 2016 and would receive $155,824.90 in past-due benefits. The agency withheld $38,956.23 for attorney’s fees, representing 25% of the past-due benefits. Counsel then sought $38,956.23 for work performed in federal court under 42 U.S.C. § 406(b). The fee agreement allowed counsel to seek up to 25% of any past-due benefits. Counsel served Rosalinda M. with the motion, and the Commissioner took no position.

Legal standard

Section 406(b) permits a court to award a reasonable fee to an attorney who represented a claimant in a successful Social Security court case. The fee cannot exceed 25% of the claimant’s past-due benefits. Courts independently review contingency-fee agreements to ensure that the resulting fee is reasonable, considering the quality of the representation, the results achieved, whether counsel delayed the case, whether the fee is excessive compared with the benefits obtained, and the risk counsel accepted. Any Section 406(b) award must be offset by fees previously awarded under the Equal Access to Justice Act.

Court’s reasoning

The court found the requested fee reasonable. The contingency-fee agreement was within the 25% statutory limit. The court found no indication of deficient performance or delay intended to increase the fee. Instead, counsel performed substantial work and achieved a favorable result by obtaining a remand that ultimately led to the disability award. The court also found $38,956.23 not excessive compared with the past-due benefits and considered the risk counsel accepted when taking the case, before knowing whether the court would grant summary judgment and order a remand.

Disposition

Judge Jacqueline Scott Corley granted counsel’s motion for fees under Section 406(b). The Commissioner was directed to certify $38,956.23 in fees payable to the Gerrard Law Offices. Counsel was ordered to refund the previously awarded $6,850 in Equal Access to Justice Act fees to Rosalinda M. The order disposed of Docket No. 34.