Martin v. Berryhill

Background

The court had previously awarded Martin attorney’s fees totaling $10,896.06 under the Equal Access to Justice Act: $1,538.76 for Martin and $9,357.30 for his counsel. Martin then sought additional fees under 42 U.S.C. § 406(b), which permits a court to approve a reasonable fee for a lawyer who represented a claimant in court and won a favorable Social Security judgment. The statute limits that fee to 25% of the claimant’s past-due benefits.

Martin first moved for $61,569.38. He later filed an amended motion requesting $31,046.24, after accounting for a $9,999.99 fee approved for services performed at the administrative level. His lawyer stated that he had worked 65.31 hours and that the requested amount represented an effective hourly rate of $475.37. The fee agreement provided for payment of 25% of past-due benefits if the representation succeeded. Martin’s lawyer also stated that the EAJA fees would be refunded to Martin.

Parties’ Positions

Martin argued that the requested fee was reasonable and permitted because it did not exceed 25% of his past-due benefits. He pointed to the seven-year delay in receiving a substantial past-due payment and ongoing benefits, as well as the risk of not obtaining benefits.

The Commissioner of Social Security stated that the effective hourly rate was $475.37 and that courts in the circuit had approved comparable rates. The Commissioner therefore did not assert that the request appeared unreasonable.

Court’s Analysis

The court applied the rule that a fee within the 25% statutory limit must still be reasonable. It considered whether the fee stayed within that limit, whether fraud or unfair pressure affected the fee agreement, and whether the requested amount would be an excessive windfall to the lawyer. The court found that the request satisfied all three considerations.

The court also recognized that fees under the Equal Access to Justice Act and Section 406(b) may both be awarded, but the lawyer must refund the smaller fee to the claimant. Because the amended Section 406(b) request was reasonable, the court awarded $31,046.24 and required Martin’s lawyer to refund the fees previously received under the Equal Access to Justice Act.

Disposition

The court granted Martin’s amended motion for $31,046.24 in attorney’s fees under 42 U.S.C. § 406(b). The clerk was directed to close the original fee motion and Docket Entry No. 48 as moot.