Bass v. Colvin

Background

Tammy L. Bass challenged the Commissioner of Social Security’s decision denying her disability insurance benefits and finding her not disabled. In October 2017, the court granted Bass’s motion for judgment on the pleadings, denied the Commissioner’s motion, and remanded the case for further administrative proceedings. After remand, an administrative law judge found Bass disabled, and the Social Security Administration issued a March 27, 2019 notice stating that her past-due benefits totaled $50,577.00.

Bass had retained the Law Offices of Charles E. Binder and Harry J. Binder, LLP (the Binder Firm) to handle her federal appeal. Her agreement provided that, if the case were remanded and she ultimately received past-due benefits, she would pay the firm 25% of those benefits. The firm applied for $12,644.25 in attorney’s fees under 42 U.S.C. § 406(b), which is exactly 25% of the past-due benefits. The Commissioner did not oppose the application but asked the court to decide whether it was timely and reasonable.

Timeliness

Federal Rule of Civil Procedure 54 generally requires a fee application to be filed within fourteen days after judgment. In Social Security cases involving a remand and later benefits award, however, the filing period may be extended until counsel receives notice of the benefits calculation, because counsel cannot calculate the statutory fee cap before learning the amount of past-due benefits.

The Binder Firm stated that it did not receive the benefits notice until October 7, 2021, after attempting for years to obtain it from the Social Security Administration. The firm filed its fee application on October 19, 2021. The court accepted the firm’s account and held that the application was timely because it was filed within fourteen days after counsel received the award, with the additional mailing period recognized in the applicable precedent.

Reasonableness of the Fee

Section 406(b) permits a court to award a reasonable fee of no more than 25% of a claimant’s past-due benefits. The court began with the contingency-fee agreement and considered whether the requested amount involved fraud, overreaching, or an attorney windfall. The Commissioner conceded that the requested percentage was within the statutory cap, and the record contained no evidence of fraud or overreaching.

The court found no windfall. The Binder Firm’s attorneys spent 24 hours on the federal appeal and had substantial experience in Social Security cases. The court considered the firm’s efficiency, its need to review a 712-page administrative record despite entering the case late, the favorable result, Bass’s lack of objection, and the uncertainty created by multiple earlier hearings and unfavorable agency decisions. The court also found no evidence that counsel had unreasonably delayed the case.

Previously Awarded Government Fees

The firm had previously received $3,088.54 in fees under the Equal Access to Justice Act, after part of the award was offset by Bass’s federal debt. When a lawyer receives both an Equal Access to Justice Act award and a fee under Section 406(b), the lawyer must return the smaller fee to the claimant. Because the court approved the Section 406(b) fee, it directed the Binder Firm to remit $3,088.54 to Bass upon receiving the new fee.

Disposition

Judge McCarthy granted Bass’s motion. The Binder Firm was awarded $12,644.25 in attorney’s fees under Section 406(b) and was directed to return $3,088.54 in Equal Access to Justice Act fees to Bass.