Daily v. Commissioner of Social Security

Background

Rachel Emmalou Daily applied for attorney’s fees and expenses under the Equal Access to Justice Act, a federal law that can require the United States to pay reasonable litigation expenses when a person prevails and the government’s position was not reasonably justified. The fee request followed an August 22, 2018 judgment granting Daily’s motion for judgment on the pleadings and remanding her claim to the Social Security Administration for further proceedings.

Daily sought $12,259 for 59.8 hours spent litigating the merits, $799.50 for 3.9 hours spent preparing the fee application, and an additional $943 for 4.6 hours spent preparing her reply. The parties agreed that $205 was the cost-of-living-adjusted hourly rate under the Act. Daily’s attorney, James M. Baker, stated that the case involved numerous physical and mental impairments and required more work than a typical case.

The Commissioner argued that the hours were excessive and that the court should limit the award to no more than 40 hours. The Commissioner characterized the case as neither novel nor complex and relied on a suggested 20-to-40-hour range for an average Social Security disability case. Daily responded that the benchmark had limited value, that the administrative record was 903 pages long, and that Baker had to learn the case because he had not represented her at the administrative level.

Court’s Analysis

The court found that Daily was the prevailing party because the earlier judgment remanded her case. The Commissioner did not dispute that point.

The court also found that the Commissioner failed to show that its position was substantially justified, meaning supported by a reasonable basis in law and fact. The court further found that no special circumstances made an award of fees unjust.

The court rejected the Commissioner’s request to apply the 20-to-40-hour benchmark mechanically. It relied on the unusually large administrative record, the need for Baker to familiarize himself with the matter after entering the case, and Baker’s explanation of the issues he considered. The court found that all 68.3 hours were reasonable: 59.8 hours for the merits, 3.9 hours for the fee application, and 4.6 hours for the reply. It also found that the $205 hourly rate was reasonable.

Disposition

Magistrate Judge Kevin Nathaniel Fox granted Daily’s application for attorney’s fees and expenses under the Equal Access to Justice Act. The court awarded $14,001.50, calculated as 68.3 reasonable hours multiplied by $205 per hour.