Shane T. v. Saul
- Becky Thorson
- 0:18-cv-00634
- U.S. District Court · District of Minnesota
- 5
Shane T. v. Saul: Judge Thorson granted counsel’s fee petition, awarding $21,646.25 and requiring refund of $5,746.56 in earlier fees.
Shane T. and his counsel; counsel received the court-approved fee, and Shane T. was to receive the refund of the previously awarded $5,746.56 in Equal Access to Justice Act fees.
What happened
In Shane T. v. Saul, Shane T. challenged the Social Security Administration’s denial of disability benefits. The court previously found a problem with the evaluation of his treating physician’s opinion and recommended sending the case back to the agency.
After the agency awarded $86,585.50 in past-due benefits, Shane T.’s lawyer asked for $21,646.25 under a fee agreement providing for 25 percent of those benefits. The Commissioner did not take a position on whether the requested amount was reasonable, but noted that the request covered 27.9 hours of attorney work.
Judge Thorson granted the fee petition and awarded counsel $21,646.25. She also required counsel to refund Shane T. the $5,746.56 in previously awarded Equal Access to Justice Act fees.
The detailed version
- Shane T. v. Saul · No. 0:18-cv-00634
- Becky Thorson
- Sept. 25, 2020
Background
Shane T. sought review of the Commissioner of Social Security’s decision denying disability benefits. He argued that the administrative law judge failed to properly evaluate his osteoarthritis, limitations involving handling and fingering, the opinion of his treating physician, and his visual impairments.
In an earlier order, the court granted in part and denied in part Shane T.’s motion and found that the administrative law judge had improperly considered the treating physician’s opinion. The court recommended remanding the matter to the Social Security Administration under 42 U.S.C. § 405(g). The agency later issued a notice stating that Shane T.’s past-due benefits totaled $86,585.50 for May 2015 through April 2020.
Attorney-fee petition
Shane T. and his counsel had agreed to a contingent fee equal to 25 percent of past-due benefits resulting from a favorable or partially favorable decision after remand. Social Security withheld $21,646.25—one-quarter of the past-due benefits—for possible attorney’s fees. Counsel petitioned under 42 U.S.C. § 406(b) for that amount and stated that he would refund the $5,746.56 in fees previously awarded under the Equal Access to Justice Act.
The Commissioner declined to take a position on the reasonableness of the request, stating that the court had to independently review the fee. The Commissioner noted that counsel sought $21,646.25 for 27.9 hours of work, which would equal an effective hourly rate of $775.85.
Court’s analysis and ruling
The court explained that Section 406(b) requires judicial review of contingent-fee agreements to ensure that they produce reasonable results. Fees cannot exceed 25 percent of past-due benefits, and a fee within that limit must still be reasonable in light of the services provided. The court considered the contingent nature of the representation, the work performed, and the results obtained. It concluded that the requested fee was not unreasonable despite the effective hourly rate and the amount of the fee relative to the hours reported.
Judge Thorson granted the petition for attorney’s fees under Section 406(b), awarded counsel $21,646.25, and required counsel to refund Shane T. the previously awarded $5,746.56 in Equal Access to Justice Act fees.
Read the full 5-page opinion on CourtListener, the free public archive maintained by the Free Law Project.