Colon v. Commissioner of Social Security

Background

Ana Ysabel Colon’s counsel, Howard D. Olinsky, represented her in this federal action seeking review of the Commissioner of Social Security’s denial of Disability Insurance Benefits. The representation agreement provided that counsel would receive 25% of any past-due benefits awarded to Colon.

Colon prevailed in the case and obtained a remand to the Social Security Administration for further proceedings. After the remand, the agency advised on October 21, 2022, that Colon was due benefits, including $72,999 in past-due benefits. The agency withheld $18,249.78 from those benefits for a possible attorney-fee request under Section 206(b) of the Social Security Act, which permits a court to authorize reasonable fees of up to 25% of past-due benefits when a disability claimant succeeds in federal court.

Counsel had previously received $6,983.20 in attorney’s fees and $16.80 in expenses under the Equal Access to Justice Act, a statute that can require the government to pay fees when its position in litigation was not substantially justified. Counsel stated that he would refund that earlier attorney-fee payment to Colon if the court approved the Section 206(b) request.

Fee Request and Analysis

Counsel requested $18,249.79 under Section 206(b) and submitted records showing 40.6 hours of work, including 33.1 attorney hours and 7.5 paralegal hours. Using a $100 hourly rate for the paralegal work, the effective attorney hourly rate was $528.69.

The court evaluated whether the requested fee was reasonable by considering the 25% statutory cap, whether the fee agreement involved fraud or overreaching, and whether the award would give counsel an improper windfall. The court found that the request was within the cap and that there was no evidence of fraud or overreaching. It also found no windfall because counsel was experienced, the effective hourly rate was within the range generally approved for similar cases, the hours were reasonable and efficient, Colon obtained a favorable benefits decision, and the case carried a risk that no benefits would be recovered.

Disposition

The court granted counsel’s motion and authorized an attorney-fee award of $18,249.79 under Section 206(b). Upon receiving the payment, counsel must refund Colon the attorney’s fees previously received under the Equal Access to Justice Act. The clerk was directed to terminate the motion at ECF No. 31.