Derosa v. Commissioner of Social Security
- Jesse Furman
- 1:20-cv-06693
- U.S. District Court · Southern District of New York
- 5
In Derosa v. Commissioner, Judge Willis granted counsel’s request for $20,800 in fees for representing Derosa in his Social Security appeal.
The ruling awards Derosa’s counsel $20,800 in fees and affects Derosa because counsel must refund the smaller fee if counsel receives both the Equal Access to Justice Act fee and the Section 406(b) fee.
What happened
In Derosa v. Commissioner of Social Security, the court considered the lawyer’s request for $20,800 under the Social Security Act after Derosa’s benefits case was sent back to the agency. The request was based on an agreement for 25% of past-due benefits, and counsel reported 33.7 hours of work.
The court found the request timely because the filing fell within the applicable period when the mailing grace period was included. It also found the fee reasonable, concluding that the work was efficient, the requested amount was consistent with other awards in the district, and the fee was not an improper windfall. The court granted the motion and awarded $20,800.
Judge Jennifer E. Willis issued the August 24, 2022 order. The opinion also states that when counsel receives both this type of fee and an Equal Access to Justice Act fee, counsel must refund the smaller fee to the claimant.
The detailed version
- Derosa v. Commissioner of Social Security · No. 1:20-cv-06693
- Jesse Furman
- Aug. 24, 2022
Background
The court had previously sent Derosa’s Social Security matter back to the Commissioner of Social Security. It later approved an award of $6,050 in attorney’s fees under the Equal Access to Justice Act. Derosa’s counsel then filed a motion for fees under Section 206(b)(1) of the Social Security Act.
The fee request relied on a contingency-fee agreement providing for 25% of past-due benefits if the case was successful. Counsel stated that 25% of the past-due benefits was $20,800 and reported 33.7 hours of work: 26.3 attorney hours and 7.4 paralegal hours. Using a $100 hourly rate for the paralegal work, the court calculated an effective attorney hourly rate of $762.74.
Timeliness
The court applied Federal Rule of Civil Procedure 54(d)(2)(B), which generally requires a claim for attorney’s fees to be filed within 14 days after entry of judgment. Although counsel filed the motion 15 days after the date on the benefits notice, the court held that the three-day mailing period made the motion timely.
Reasonableness of the Fee
The court evaluated whether the requested contingency fee was reasonable and whether it would create an improper windfall. It considered counsel’s efficiency and ability, the length of the professional relationship, the claimant’s satisfaction, and the uncertainty and effort involved in obtaining benefits.
The court found that counsel efficiently resolved the matter with 33.7 hours of work. It stated that the professional relationship lasted for the duration of the representation, that Derosa’s success in obtaining benefits supported an inference of satisfaction, and that the matter involved uncertainty comparable to the average appeal of a denial of benefits. The court also stated that the requested fee was consistent with other awards in the district.
Disposition
The court granted the motion and awarded counsel $20,800. The court also noted that counsel may receive fees under both the Equal Access to Justice Act and Section 406(b), but must refund the smaller fee to the claimant when both fees are received. The Clerk of Court was requested to terminate the motion.
Read the full 5-page opinion on CourtListener, the free public archive maintained by the Free Law Project.