Parker v. Colvin

Background

Donna Jean Parker’s counsel moved for attorney’s fees under 42 U.S.C. § 406(b)(1), which permits a court to award reasonable fees from past-due Social Security benefits, subject to a statutory limit of 25% of those benefits. Counsel sought $28,626.75, representing 25% of Parker’s retroactive benefits. The fee request was based on the applicable contingency-fee agreement, meaning counsel’s payment depended on obtaining benefits for Parker.

Parties’ Positions

The Commissioner did not dispute that counsel was entitled to seek $28,626.75 under the retainer agreement or that the statute permits fees up to 25% of past-due benefits. The Commissioner objected solely that the requested fee would produce an effective hourly rate of $1,048.59, calculated by dividing $28,626.75 by 27.3 hours, and would therefore be a windfall, or excessive payment, to counsel.

Court’s Analysis

The court noted that other courts in the Southern District of New York had approved Social Security fee awards producing comparable effective hourly rates. It concluded that the high rate resulted from competent and efficient advocacy rather than inadequate work. The court also considered the risk counsel accepted by taking the case on a contingency basis and the importance of encouraging attorneys to accept Social Security cases under such arrangements.

Disposition

Judge Gardephe granted the motion for attorney’s fees in the amount of $28,626.75. The clerk was directed to close the case.