Fensterman v. O'Malley
0:22-cv-02862
D. MinnesotaMay 8, 2025Background
- Plaintiff's counsel represented the plaintiff in a Social Security case, seeking back benefits via federal court litigation.
- The court previously partially granted the plaintiff's motion for summary judgment, remanding the case to the Social Security Administration (SSA).
- SSA awarded the full amount of back benefits sought by the plaintiff, withholding 25% ($26,378.68) for potential attorneys' fees.
- The parties previously stipulated to $8,500 in attorneys' fees under the Equal Access to Justice Act (EAJA).
- Plaintiff's counsel now seeks authorization for a net attorney fee of $17,878.68 under 42 U.S.C. § 406(b), reflecting the contingency fee minus the already-paid EAJA fee.
- The defendant (the Commissioner of Social Security) took no position on the request for fees.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Reasonableness of fee under § 406(b) | Fee reflects contingency agreement (25%), is reasonable for outcome achieved | No opposition | Fee of $26,378.68 is reasonable based on results and precedent |
| Duplication of EAJA and § 406(b) fees | Counsel will refund the lower EAJA fee as required | No opposition | Attorney must refund $8,500 EAJA fee, so net recovery is $17,878.68 |
| Effective hourly rate | $578.48/hr is reasonable and within district norms | No opposition | Court finds hourly rate is reasonable and within district norms |
| Compliance with agency procedures | Requests payment issued per SSA policy | No opposition | Payment of $17,878.68 to be issued to counsel per SSA policy |
Key Cases Cited
- Gisbrecht v. Barnhart, 535 U.S. 789 (2002) (sets standard for assessing reasonableness of contingency fee agreements in Social Security cases)
- Kertz v. Colvin, 125 F.4th 1218 (8th Cir. 2025) (emphasizes contingency agreement as anchor in § 406(b) fee analysis)
