Bujan v. Colvin

Background

Dennis Bujan previously obtained a remand of an adverse decision denying his application for Social Security Disability benefits. After the remand, he obtained a substantial award of retroactive benefits. His counsel had previously received $40,425 for work at the administrative level and $6,200 under the Equal Access to Justice Act (EAJA).

Counsel then moved for $19,800 in fees for work performed in the district court under 42 U.S.C. § 406(b)(1). The opinion states that Section 406(a) governs fees for administrative proceedings, while Section 406(b) governs fees for representation in court. Section 406(b) limits court-related fees to 25 percent of the claimant’s past-due benefits. The court also explained that an EAJA award offsets a Section 406(b) award dollar for dollar; counsel must refund the smaller amount to the claimant when both awards are received.

Reasonableness Review

Because Social Security practitioners typically work under contingency-fee agreements, the court reviewed the requested fee for reasonableness. It considered the character of the representation, the result obtained, whether the agreement resulted from fraud or overreaching, and whether the fee would produce a windfall for counsel.

The court found that the requested fee was reasonable, was not the result of fraud or overreaching, and would not be a windfall. The requested amount was less than 25 percent of Bujan’s retroactive benefits. Counsel had spent 33 hours on the case, which the court found reasonable in light of the work performed. The resulting effective hourly rate was approximately $600, which the court stated was within the range approved in similar cases.

Ruling

Judge Robert W. Lehrburger granted the motion. The court awarded counsel $19,800 in attorneys’ fees. Upon receiving those fees, counsel must refund $6,200 to Bujan, representing the amount previously received under the EAJA.