Ghilardi v. Commissioner of Social Security

Background

Michelle Ann Ghilardi brought the case under Section 205(g) of the Social Security Act, 42 U.S.C. § 405(g), seeking review of an administrative law judge’s decision denying her disability insurance benefits. The parties entered a stipulation and order on December 4, 2018, sending the case back to the Commissioner for further administrative proceedings. The Clerk then entered judgment remanding the case.

On February 5, 2019, the Commissioner agreed to pay $1,450 in attorney’s fees and expenses under the Equal Access to Justice Act, in full satisfaction of those claims. On February 4, 2020, the Social Security Administration issued a notice stating that Ghilardi was owed $67,331 in past-due benefits and that $16,832.75 was being withheld for attorney’s fees. Ghilardi’s counsel then requested $4,500 in fees under 42 U.S.C. § 406(b).

Report and Recommendation

Magistrate Judge Stewart D. Aaron recommended granting the request for $4,500 and requiring Ghilardi’s counsel to return the $1,450 previously awarded under the Equal Access to Justice Act. No party objected to the recommendation. Because there were no objections, the District Court reviewed it for clear error, meaning an obvious mistake after reviewing the record.

Court’s Analysis

The court found no clear error in Magistrate Judge Aaron’s calculation or recommendation. It explained that attorney’s fees may be awarded under both the Equal Access to Justice Act and Section 406(b), but the claimant’s attorney must return the smaller fee to the claimant. The court noted that counsel had pledged to do so.

Disposition

The court adopted the Report and Recommendation in full. It granted Plaintiff’s counsel’s motion for $4,500 in attorney’s fees under Section 406(b) and directed counsel to return the $1,450 previously awarded under the Equal Access to Justice Act to Ghilardi. The Clerk was directed to close the motion.