Ferguson v. Commissioner of Social Security, 3:17-cv-00241

Plaintiff Toni Ferguson appealed a Social Security non‑disability finding; Judge Rose reversed and remanded on April 3, 2018.
On remand Ferguson was awarded $81,514.50 in past‑due benefits.
Counsel previously obtained an EAJA award of $3,500, but the EAJA award was offset to satisfy a preexisting debt of the plaintiff and counsel received no EAJA payment.
Counsel requested $12,000 in attorney’s fees under 42 U.S.C. § 406(b); that amount equals 25% of past‑due benefits ($20,378.63) minus $8,378.63 counsel seeks under § 406(a) for administrative work.
Counsel billed 26.25 hours in federal court, yielding a hypothetical hourly rate of $457.14; the Magistrate Judge found that rate reasonable and the § 406(b) request unopposed.
Magistrate Judge Michael J. Newman recommended granting the unopposed § 406(b) motion, awarding $12,000 in fees, and leaving the case terminated on the docket.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether § 406(b) fees of $12,000 are proper	Fee request is lawful: within 25% cap after subtracting § 406(a) administrative fee; reasonable given 26.25 hours and counsel's experience	No opposition from Commissioner	Award granted: $12,000 under § 406(b)
Whether the fee would constitute a windfall / be reasonable given hourly equivalency	Counsel’s hours (26.25) make the $12,000 reasonable; hypothetical hourly rate $457.14 is acceptable	Commissioner did not contest reasonableness	Court found the hypothetical hourly rate reasonable and no windfall; fee approved

Gisbrecht v. Barnhart, 535 U.S. 789 (2002) (court must review contingency‑fee agreements for reasonableness)
Astrue v. Ratliff, 560 U.S. 586 (2010) (EAJA fees may be offset to satisfy a plaintiff's preexisting federal debt)
Rodriquez v. Brown, 865 F.2d 739 (6th Cir. 1989) (25% contingency fee accorded rebuttable presumption; reductions appropriate to avoid windfalls)
Royzer v. Secretary of Health & Human Servs., 900 F.2d 981 (6th Cir. 1990) (contingent fees may produce high hourly equivalents without being unreasonable)
Hayes v. Secretary of Health & Human Servs., 923 F.2d 418 (6th Cir. 1990) (guidance on hypothetical hourly‑rate reasonableness)