Dubie v. Berryhill

Background

Beth Ilissa Dubie applied for Social Security Disability Insurance benefits, alleging disability beginning May 4, 2012. An administrative law judge denied her claim, and the Social Security Administration’s Appeals Council declined review. Dubie then sought review in federal court with Howard D. Olinsky as her lawyer.

After Dubie moved for judgment on the pleadings, the parties agreed that the administrative law judge’s decision should be reversed and that the case should be sent back to the Commissioner of Social Security for further proceedings. The later proceedings resulted in an award of $77,898 in past-due benefits for Dubie.

Olinsky had previously received $7,015.78 in attorney’s fees under the Equal Access to Justice Act. He later asked for $21,756 under section 406(b)(1) of the Social Security Act and agreed to return the smaller fee amount to Dubie if both awards were approved.

Legal standard

Section 406(b)(1) allows a court to award a successful Social Security claimant’s lawyer a reasonable fee from the claimant’s past-due benefits. The fee cannot exceed 25% of those benefits. The court must independently review a contingency-fee agreement to determine whether the requested amount is reasonable, including whether it would give the lawyer an excessive payment compared with the work performed.

Court’s analysis

The court found that Olinsky’s requested $21,756 exceeded 25% of Dubie’s total past-due benefits. Twenty-five percent of $77,898 is $19,474.50, so the court reduced the requested amount to that figure.

The court then found the reduced fee reasonable. Dubie received a favorable result, there was no evidence that the fee agreement resulted from fraud or improper pressure, and Olinsky did not unreasonably delay the case. His office recorded 40.2 hours of work, including attorney and paralegal time, and the court found the hours and resulting hourly rates reasonable in light of the successful outcome and comparable awards in other cases.

Because Olinsky had also received the Equal Access to Justice Act fee, the court required him to refund $7,015.78 to Dubie. The refund requirement ensured that Dubie received the smaller of the two fee amounts.

Disposition

Judge Sarah L. Cave granted in part and denied in part Olinsky’s motion. The court awarded Olinsky $19,474.50 in fees under section 406(b) of the Social Security Act and ordered him to promptly refund $7,015.78 to Dubie. The opinion concerns attorney’s fees and does not itself decide whether Dubie was disabled.