Marcoux v. Commissioner Of Social Security

Background

The court had previously remanded Douglas Marcoux’s Social Security case to the Commissioner. After Marcoux received past-due benefits, the Social Security Administration advised him that it had withheld $8,284.50, which represented 25% of his past-due benefits, for a possible attorney-fee request. Marcoux’s counsel then filed a motion under 42 U.S.C. § 406(b) seeking approval of $8,284.50 in attorney’s fees.

The fee agreement provided that attorney’s fees would be the greater of 25% of any past-due benefits or the amount obtained under the Equal Access to Justice Act. The court had previously awarded counsel fees under that Act.

Court’s analysis

Section 406(b) allows a court to approve a reasonable fee for an attorney who represented a claimant in court and obtained a favorable judgment, subject to a limit of 25% of the claimant’s past-due benefits. The court explained that it independently reviews contingent-fee agreements to ensure that they produce a reasonable result. Its review considers whether the request exceeds the 25% limit, whether the agreement resulted from fraud or overreaching, and whether the fee would be an improper windfall to counsel.

The court found that the requested $8,284.50 did not exceed 25% of Marcoux’s past-due benefits. It also found that counsel’s work was reasonable and comparable to hourly work and rates approved by other courts in the district. Because counsel’s efforts resulted in Marcoux receiving past-due benefits and the billing records showed appropriate time for each task, the court found that the fee would not be a windfall. The court also found the motion timely because counsel filed it twelve days after the notice concerning the change in benefits, within the applicable 14-day period.

The parties represented that, if both the Equal Access to Justice Act fee and the Section 406(b) fee were approved, counsel would refund Marcoux the smaller award. The court noted that the previously awarded Equal Access to Justice Act fee was $6,627.60.

Disposition

Judge Ona T. Wang granted Marcoux’s motion for attorney’s fees. The court directed the Social Security Administration to approve payment of $8,284.50 to Daniel A. Osborn of Osborn Law, P.C. After receiving that payment, counsel must promptly refund $6,627.60 to Marcoux. The clerk was directed to close the fee-motion docket entry.