Bennett v. Commissioner of Social Security

Background

Charles Bennett applied for disability benefits, but an Administrative Law Judge denied his claim. After the Social Security Administration’s Appeals Council affirmed that decision, Bennett appealed to federal court and retained Daniel Berger to represent him. The parties later agreed that the Administrative Law Judge’s decision should be reversed and that the case should be returned to the Social Security Administration for further proceedings.

On remand, a second Administrative Law Judge found Bennett disabled as of June 17, 2012. The Social Security Administration then awarded Bennett monthly disability benefits beginning in December 2012 and withheld $17,444.38, described as 25 percent of his past-due benefits, for possible representative fees. The Administration later notified Berger that $11,444.38 remained available for a court-approved fee after Berger had received $5,902 under the separate administrative-fee provision.

Berger moved for $11,444.38 under Section 206(b)(1) of the Social Security Act, which allows a court to approve a reasonable fee for an attorney’s work representing a claimant in federal court, subject to a limit of 25 percent of the claimant’s past-due benefits. Berger and his paralegals had recorded 27.1 hours of work, including 26.6 attorney hours and 0.5 paralegal hours.

Timeliness

The court considered whether Berger filed the motion too late. The usual deadline is 17 days after counsel receives notice of the benefits calculation. Berger filed the motion 15 days after receiving a February 2, 2021 Status Notice stating the amount still being withheld for attorney fees. The court concluded that the Status Notice provided the information Berger needed to calculate the fee request and held that the circumstances justified treating the motion as timely. The court therefore did not deny the motion on timeliness grounds.

Reasonableness of the Fee

The court reviewed the contingency-fee agreement and the requested amount. It found that the fee was within the 25-percent statutory limit, consistent with the agreement, and unsupported by any evidence of fraud or improper pressure. The court also found that Berger’s work produced a successful result because Bennett ultimately received disability benefits.

The court determined that the fee would not be an improper windfall. Berger’s work included preparing the complaint, advising Bennett, communicating with the Commissioner’s counsel, and preparing a 25-page memorandum supporting Bennett’s motion for judgment on the pleadings. The court found the 27.1 hours reasonable and calculated a blended hourly rate of $422.30, or $430.24 for Berger’s attorney time after accounting for paralegal work. It concluded that both rates were reasonable compared with fees approved in similar cases.

Ruling

The court granted Berger’s motion. It awarded him $11,444.38 under Section 406(b) of the Social Security Act and ordered him to promptly refund Bennett the $3,774.90 previously received under the Equal Access to Justice Act. The Clerk was directed to close the fee motion.