Marsh v. Commissioner of Social Security
- Carter
- 1:19-cv-06349-ALC
- U.S. District Court · Southern District of New York
- 5
In Marsh v. Commissioner, Judge Carter partially granted the fee motion, awarding counsel $2,420 and ordering a $353.16 refund to Plaintiff.
The ruling affects Plaintiff, her attorney, and the Commissioner of Social Security: counsel receives $2,420 from Plaintiff’s past-due benefits and must refund $353.16 to Plaintiff.
What happened
In Marsh v. Commissioner of Social Security, the court considered the attorney’s request for $2,720 from Plaintiff’s past-due disability benefits after the case was sent back for further administrative proceedings. Plaintiff’s attorney had already received a $353.16 fee under the Equal Access to Justice Act.
The court found the request timely and recognized counsel’s expertise, efficiency, and successful result. But it found the requested effective rate of about $1,600 per hour too high under the circumstances, partly because counsel had represented Plaintiff only in the federal-court appeal and not during the earlier agency proceedings.
Judge Andrew L. Carter, Jr. partially granted the motion and awarded $2,420 in fees, to be paid from Plaintiff’s past-due benefits. The court ordered counsel to refund the previously awarded $353.16 Equal Access to Justice Act fee directly to Plaintiff within five business days after receiving the new fee award.
The detailed version
- Marsh v. Commissioner of Social Security · No. 1:19-cv-06349-ALC
- Carter
- Mar. 12, 2024
Background
Plaintiff filed the underlying Social Security appeal in 2019. The parties agreed to reverse the Commissioner’s administrative decision and send the case back to the Commissioner, and the court entered judgment on November 6, 2019. The court later approved a $353.16 attorney-fee payment under the Equal Access to Justice Act.
The Social Security Administration later notified Plaintiff that $171,130 in past-due benefits were payable. Twenty-five percent, or $42,782.50, was withheld for attorney’s fees. Plaintiff’s attorney then moved under 42 U.S.C. § 406(b) for $2,720 for 1.70 hours of federal-court work.
Legal standard and analysis
Section 406(b) permits a court to approve a reasonable attorney’s fee, up to 25 percent of a claimant’s past-due benefits, when the attorney represented a successful claimant. The court first considers the contingent-fee agreement and then determines whether the requested amount is reasonable. Relevant considerations include the quality and success of the representation, any delay by counsel, fraud or overreaching, and whether the requested amount would be an improper financial windfall compared with the work performed.
The court found that counsel’s request was timely. It also recognized counsel’s significant experience in Social Security disability cases, efficiency, successful efforts, and the favorable result. The court found no indication that Plaintiff objected to the fee. But the requested effective hourly rate of approximately $1,600 was high, and the court found that a slight reduction was justified because counsel represented Plaintiff only in the federal-court action and had not represented her during the earlier agency proceedings. The court also noted that benefits were not awarded until April 1, 2021, after Plaintiff had pursued multiple appeals, making the outcome uncertain.
Ruling
The court found the contingent-fee agreement and requested amount unreasonable under the circumstances and reduced the award. It partially granted Plaintiff’s attorney’s motion: counsel was awarded $2,420 in fees, payable by the Commissioner from Plaintiff’s past-due benefits. The court also ordered counsel, within five business days after receiving the § 406(b) fees, to refund the $353.16 previously awarded under the Equal Access to Justice Act directly to Plaintiff and file a declaration confirming the refund. The clerk was directed to terminate the fee motion.
Read the full 5-page opinion on CourtListener, the free public archive maintained by the Free Law Project.