S.R. v. Kijakazi
- Joseph Spero
- 3:22-cv-00516
- U.S. District Court · Northern District of California
- 4
In S.R. v. Kijakazi, Judge Spero granted counsel $31,542 in Social Security fees and ordered $10,902 in previously awarded fees and costs paid to S.R.
S.R. and S.R.’s counsel were directly affected: counsel received court-approved fees of $31,542, and S.R. was ordered to receive the previously awarded $10,902 in fees and costs under the Equal Access to Justice Act.
What happened
S.R. v. Kijakazi involved S.R.’s request for review of the Social Security Administration’s denial of disability benefits. After the case was sent back for further proceedings, S.R. was found disabled and received $126,168.70 in past-due benefits. Counsel sought 25% of that amount, or $31,542, for work performed in court.
The court reviewed the contingency-fee agreement and counsel’s time records. It found the agreement valid, the 50.55 hours reasonable, no evidence of poor performance, and the requested effective hourly rate of $623.98 reasonable given the result obtained and the risk counsel accepted.
Judge Spero granted the motion. Counsel was awarded $31,542 in fees under Section 406(b), and the previously awarded fees and costs under the Equal Access to Justice Act, totaling $10,902, were ordered paid to S.R.
The detailed version
- S.R. v. Kijakazi · No. 3:22-cv-00516
- Joseph Spero
- June 5, 2024
Background
S.R. brought this Social Security case seeking review of the Commissioner’s denial of an application for disability insurance benefits. After S.R. moved for summary judgment, the Commissioner agreed to send the case back for further proceedings. On remand, S.R. was found disabled and awarded $126,168.70 in past-due benefits.
S.R. had entered into a contingency-fee agreement providing that counsel would receive 25% of the past-due benefits if S.R. prevailed. The Commissioner withheld $31,542.18, representing 25% of the award, for attorney’s fees. Counsel asked the court to approve $31,542 under 42 U.S.C. § 406(b), which governs attorney’s fees for representation in court in Social Security cases. Counsel submitted records showing 50.55 hours of work, making the requested effective hourly rate $623.98.
The court had previously approved $10,500 in attorney’s fees and $402 in costs under the Equal Access to Justice Act, for a total of $10,902. Counsel stated that, if the Section 406(b) request were granted, the Equal Access to Justice Act fees would be paid to S.R. The Commissioner did not respond to the motion.
Analysis
Under the Supreme Court’s decision in Gisbrecht v. Barnhart, the court first examines the contingency-fee agreement and then tests the requested fee for reasonableness. A court may reduce a fee for poor representation, delay, or benefits that are disproportionate to the time spent. Courts generally may approve an effective hourly rate higher than ordinary hourly rates when the attorney worked under a reasonable contingency agreement involving a substantial risk of receiving no payment.
The court found the request reasonable. Counsel provided a valid agreement for 25% of the past-due benefits, supplied a reasonable time record, and obtained an excellent result. The court found no evidence that counsel’s work was inadequate or that the fee was disproportionate to the work performed. It also found the $623.98 effective hourly rate within the range approved by courts in similar cases.
Fees under Section 406(b) and the Equal Access to Justice Act may both be awarded, but the attorney must refund the smaller fee to the claimant. The court stated that the Equal Access to Justice Act award covering fees and costs should be paid in full to S.R. in the amount of $10,902.
Disposition
Judge Joseph C. Spero granted the motion for attorney’s fees under Section 406(b). Counsel was awarded $31,542 in fees. The Equal Access to Justice Act fees previously awarded in the case, totaling $10,902, were ordered paid to S.R.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.