Almodovar v. Colvin

Background

David Almodovar applied for disability benefits, but an administrative law judge found that he was not entitled to benefits. The Social Security Administration’s Appeals Council declined to review that decision. Almodovar then retained attorney Christopher James Bowes to pursue the claim in federal court.

The retainer agreement required Almodovar to pay Bowes 25% of any past-due benefits recovered, and stated that Almodovar would owe nothing if no past-due benefits were recovered. On February 9, 2018, the court adopted a magistrate judge’s recommendation that the denial of benefits be vacated and the case be sent back to the Social Security Administration. On remand, the administrative law judge found Almodovar entitled to past-due disability benefits, and the Social Security Administration issued a notice of award.

Bowes sought $25,560.25 under 42 U.S.C. § 406(b), representing 25% of $102,241 in past-due benefits. Because Bowes had previously received a $7,000 fee award under the Equal Access to Justice Act, the requested net payment was $18,560.25.

Court’s Review

No party objected to Magistrate Judge Sarah Netburn’s report and recommendation. The court therefore reviewed the report for clear error and adopted it in full.

The court held that a fee award was permissible even though the federal court had initially sent the case back without itself awarding benefits, because benefits were later awarded after remand. The court also found the motion timely. Although the timing of the notice of award raised an issue, the court extended the filing deadline based on Bowes’s statement that he did not receive the notice until March 1, 2019, and the envelope’s February 27, 2019 postmark.

The court found the fee reasonable under § 406(b). The requested gross amount was exactly 25% of the past-due benefits and therefore did not exceed the statutory limit. The court found no evidence of fraud or overreaching in the agreement. It also concluded that the award would not be an improper windfall because Bowes obtained a favorable result, prepared a non-boilerplate 20-page motion supported by legal authority, and worked 35.4 hours on the case. The court further noted that the effective hourly rate of $722.04 did not, by itself, make the award unreasonable.

Disposition

The court ADOPTED Magistrate Judge Netburn’s report and recommendation in full and GRANTED the motion for approval of the contingent fee agreement under 42 U.S.C. § 406(b). It awarded $25,560.25 in attorney’s fees, less the $7,000 previously awarded under the Equal Access to Justice Act, resulting in a net fee of $18,560.25. The Clerk of Court was directed to close the motion.