Minard v. Saul

Background

Attorney Lewis B. Insler moved for approval of $17,389.40 in attorney fees under 42 U.S.C. § 406(b), based on a contingency-fee agreement with Darren Minard. The Social Security Administration had withheld $37,389.40 from Minard’s past-due benefits for a potential attorney-fee request. The opinion states that Minard’s administrative attorney, Gabriel J. Hermann, would seek the remaining $20,000 under 42 U.S.C. § 406(a).

On February 24, 2021, the court had remanded the case to the Commissioner for further proceedings under sentence four of 42 U.S.C. § 405(g). On February 8, 2022, the Social Security Administration notified Minard that he was due benefits. Insler filed his fee motion on February 27, 2022. The Commissioner did not oppose the motion and left the questions of timeliness and reasonableness to the court. The court also directed the clerk to substitute Ms. Kijakazi for Andrew Saul because Saul was no longer the Commissioner of the Social Security Administration.

Timeliness

Section 406(b) allows a court to approve a reasonable fee for an attorney who obtained a favorable judgment for a Social Security claimant, subject to a maximum of 25% of the claimant’s past-due benefits. The Second Circuit treats these applications as subject to a 14-day filing period under Federal Rule of Civil Procedure 54. That period is extended until the party receives notice of the benefits award, and courts may enlarge the period when circumstances warrant.

Insler filed the motion 19 days after the Social Security Administration issued the benefits notice. He represented that he did not receive the notice from Minard’s administrative attorney until February 25, 2022, attributing the delay to remote work issues during the COVID-19 pandemic. The court exercised its discretion to treat the motion as timely.

Reasonableness of the Fee

The court considered whether the requested fee exceeded the 25% limit, whether the contingency agreement involved fraud or overreaching, and whether the award would be an improper windfall. Minard had agreed to pay Insler 25% of his past-due benefits if the litigation succeeded, and the court found that amount within the statutory limit. The Commissioner stated that there was no evidence of fraud or overreaching.

The court also considered factors concerning whether the fee would be a windfall, including Insler’s experience and efficiency, the nature and length of his relationship with Minard, Minard’s satisfaction, and the uncertainty and effort involved in obtaining benefits. The court noted that Insler had handled more than 300 Social Security cases during a career of more than 40 years and had obtained the successful result in 29.1 hours. It found the resulting de facto hourly rate of $596.34 reasonable.

Disposition

The court GRANTED Insler’s motion for approval of $17,389.40 in attorney fees under § 406(b). Because Insler had previously received $5,300 in fees under the Equal Access to Justice Act, the court ORDERED him to refund $5,300 to Minard. The clerk was directed to close the motion.