Camardella v. Acting Commissioner of Social Security

Background

Marilyn M. Camardella brought this action to challenge the denial of her application for disability benefits. In August 2022, the parties agreed to send the case back to the Social Security Administration for further proceedings. In October 2022, the court awarded Camardella $10,000 in attorney fees under the Equal Access to Justice Act, plus $402 in costs.

An Administrative Law Judge ruled in Camardella’s favor on November 16, 2023. The Social Security Administration then issued a December 13, 2023 Notice of Award stating that Camardella would receive past-due benefits and ongoing monthly benefits. Her attorneys, Binder & Binder, sought $43,058.98 under Section 406(b) of the Social Security Act. That provision allows a federal court to approve attorney fees of up to 25% of a claimant’s past-due benefits after a favorable result.

Timeliness of the Motion

A Section 406(b) fee motion generally must be filed within the 14-day period provided by Federal Rule of Civil Procedure 54(d)(2)(B), measured from the claimant’s notice of the benefits award. The motion was filed more than 14 days after the date on the Notice of Award. Counsel stated that the firm received its copy on January 2, 2024, after it had been mailed to the firm’s prior address and forwarded to its current address. The court found counsel’s explanation unsworn and limited, but exercised its discretion to allow the late filing because the circumstances warranted it.

Reasonableness of the Fee

The court reviewed the contingency-fee agreement rather than applying a standard hourly-fee calculation. The agreement entitled Binder & Binder to 25% of back benefits, subject to court approval. The requested amount did not exceed 25% of Camardella’s past-due benefits. The Social Security Administration had withheld $43,058.98, and the court concluded that the amount therefore represented no more than the statutory limit.

The attorneys’ records showed 44.7 hours of work, primarily reviewing the 2,296-page administrative record, preparing Camardella’s motion for judgment on the pleadings, and negotiating the remand. The requested fee produced an effective hourly rate of $916. The court nevertheless concluded that the fee was not an improper windfall after considering the attorneys’ ability and expertise, the nature of their professional relationship with Camardella, the absence of evidence that she was dissatisfied, and the uncertainty inherent in contingency litigation. The court also found no suggestion that the fee agreement resulted from fraud or overreaching.

Disposition

The court granted Camardella’s motion. It authorized the Commissioner to award Binder & Binder $43,058.98 under Section 406(b). Because Camardella had already received a $10,000 fee award under the Equal Access to Justice Act, Binder & Binder was directed to refund that $10,000 to her after receiving the Section 406(b) payment.