Miller v. Kijakazi

Background

Wilson K. Miller sought judicial review of the Social Security Administration’s denial of his application for disability insurance benefits. The parties agreed to remand the case for further administrative proceedings. On remand, the Social Security Administration reversed the denial and awarded Miller $111,553.52 in past-due benefits dating to May 7, 2015.

The court had previously awarded Miller’s counsel $6,472.16 in fees and $400 in costs under the Equal Access to Justice Act. Counsel then moved for fees under 42 U.S.C. § 406(b)(1), seeking $27,888.38—25% of Miller’s past-due benefits—to be paid from benefits withheld for that purpose. The fee agreement also provided for a 25% contingency fee. The Commissioner did not oppose the requested fee but asked the court to require counsel to refund the smaller fee award to Miller if fees were awarded under both statutes.

Reasonableness of the Fee

Section 406(b)(1)(A) allows a court to award reasonable fees to counsel who successfully represented a Social Security claimant, subject to a limit of 25% of past-due benefits. The court independently reviews a contingency-fee agreement and the resulting award for reasonableness. Relevant considerations include the quality of the representation, the result achieved, delays caused by counsel, and whether the fee is disproportionate to the time spent and complexity of the case.

The court found that counsel’s representation was successful because it resulted in the award of benefits and a finding of disability beginning on the date Miller alleged. The agreement did not exceed the statutory 25% limit, and nothing showed that it was unreasonable when made. The record exceeded 2,500 pages, and success was not obvious when Miller signed the agreement. Counsel and staff spent 37.6 hours on the case. Although the requested fee produced an effective hourly rate of $741.71, the court found that amount reasonable given the contingency risk, the complexity of the proceedings, comparable awards in other District of Minnesota Social Security cases, and counsel’s waiver of compensation for administrative proceedings. The court also found that counsel did not cause significant or unreasonable delay.

Refund of Earlier Fees

When counsel receives fees for the same work under both the Equal Access to Justice Act and Section 406(b), counsel must refund the smaller amount to the claimant. Because the previously awarded Equal Access to Justice Act fee of $6,472.16 was smaller than the Section 406(b) award, the court ordered counsel to refund $6,472.16 to Miller.

Order

The court granted Miller’s motion for attorney fees under 42 U.S.C. § 406(b), awarded Miller’s counsel $27,888.38, and ordered counsel to refund Miller $6,472.16 in previously awarded Equal Access to Justice Act fees.