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Fensterman v. O'Malley
0:22-cv-02862
D. Minnesota
May 8, 2025
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Background

  • 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)
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Case Details

Case Name: Fensterman v. O'Malley
Court Name: District Court, D. Minnesota
Date Published: May 8, 2025
Docket Number: 0:22-cv-02862
Court Abbreviation: D. Minnesota