Campbell v. Commissioner of Social Security
1:24-cv-00144
N.D. Ind.Sep 15, 2025Background
- Plaintiff Karen S. Campbell applied for Social Security Disability (Title II) and SSI (Title XVI) claiming onset in June 2019; initial administrative denial became final after Appeals Council review and she filed suit in federal court on April 9, 2024.
- The district court granted the parties’ joint motion to remand on June 26, 2024; on remand the ALJ approved Campbell’s DIB claim and the SSA issued a Notice of Award dated July 22, 2025 awarding $93,817 in past-due benefits.
- Plaintiff had a contingent-fee agreement permitting counsel to receive up to 25% of past-due benefits; counsel agreed to 25% and sought fees under 42 U.S.C. § 406(b).
- Counsel previously obtained $2,312.40 in EAJA fees (28 U.S.C. § 2412) which the court awarded in August 2024; counsel may not keep both full EAJA and § 406(b) fees and must refund or offset the smaller amount.
- Attorney Ann M. Trzynka moved for § 406(b) fees of $8,454.25 (9.4 hours of federal-court work, resulting in a computed hourly equivalent of $246/hour); Plaintiff filed a notice allowing counsel to keep the EAJA amount, effectively reducing the § 406(b) net to $6,141.85.
- The court found the § 406(b) request reasonable (no unjustified delay, reasonable hourly equivalent for contingent Social Security work) and granted the motion, awarding counsel $8,454.25 total and ordering that counsel keep the previously received $2,312.40 (net $6,141.85 now awarded).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a § 406(b) fee of $8,454.25 is reasonable | Fee is reasonable for 9.4 hours of federal-court work; yields $246/hour equivalent and is within district practice for contingent cases | Agency did not object to entitlement or amount (neither agreed nor disagreed) | Court found the § 406(b) fee reasonable, no reduction for delay or excessive hours; granted $8,454.25 (net $6,141.85 after EAJA retention) |
Key Cases Cited
- Culbertson v. Berryhill, 139 S. Ct. 517 (2019) (clarifies that § 406(b) governs fees for representation in federal court and interplay with other fee statutes)
- Gisbrecht v. Barnhart, 535 U.S. 789 (2002) (establishes reasonableness standard for § 406(b) fees and that EAJA awards offset § 406(b) recoveries)
