Brooks v. Social Security Administration, Commissioner of
2:16-cv-02670
D. Kan.Jun 17, 2019Background
- Plaintiff Mary Louise Brooks appealed an adverse SSA decision to the U.S. District Court for the District of Kansas; the court remanded the case to the SSA on May 26, 2017.
- Brooks had an attorney-fee contingency agreement with Robert M. Driskill providing for 25% of past-due benefits if she received a favorable decision.
- After remand, SSA awarded Brooks $36,405 in past-due benefits; 25% equals $9,101.25.
- Driskill had already received $1,500 from SSA for administrative work and Brooks had been awarded $5,000 in EAJA fees by the court.
- Driskill moved for § 406(b) fees of $7,601.25 (25% of past-due benefits minus the $1,500 previously paid), asking that the award be paid from Brooks’s past-due benefits.
- The Acting Commissioner took no position on the fee amount; the court evaluated the contingency agreement and reasonableness of the fee.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the contingency-fee agreement is enforceable and within § 406(b) cap | Agreement valid; fee limited to 25% of past-due benefits | No opposition to amount; SSA took no position | Enforceable and within statutory 25% cap |
| Whether the § 406(b) fee amount is reasonable | 25% (less $1,500) yields $7,601.25 and is reasonable for services/result | No objection to reasonableness | Court found $7,601.25 reasonable given representation and results |
| Interaction between EAJA award and § 406(b) recovery (double recovery) | Driskill previously accepted $5,000 EAJA award | SSA/ statute require no double recovery from past-due benefits | Attorney must refund the smaller EAJA award to prevent double recovery |
| Who pays the § 406(b) fee | Fee to be paid out of claimant’s past-due benefits per § 406(b) | SSA to effect payment from past-due benefits; no position on amount | Ordered fee of $7,601.25 to be awarded from Brooks’s past-due benefits |
Key Cases Cited
- Gisbrecht v. Barnhart, 535 U.S. 789 (2002) (approves contingent-fee contracts up to 25% and directs courts to assess reasonableness of § 406(b) requests)
- McGuire v. Sullivan, 873 F.2d 974 (7th Cir. 1989) (district courts must independently assess reasonableness of contingency-fee terms)
- Goatcher v. Chater, 57 F.3d 980 (10th Cir. 1995) (EAJA prevailing-party standard and when fees are awarded)
- Weakley v. Bowen, 803 F.2d 575 (10th Cir. 1986) (attorney receiving both EAJA and Social Security Act fees must refund the smaller award to avoid double recovery)