Fontana v. Commissoner of Social Security
1:10-cv-00932
E.D. Cal.Jan 27, 2012Background
- Fontana plaintiff in SSA benefits suit; counsel Bosavanh seeks 406(b) attorney fees after remand and favorable ALJ ruling.
- Past-due benefits calculated at $121,780.20; 25% contingent fee cap applies to past-due amount.
- EAJA fee was previously awarded in the amount of $3,168.59, to be credited against 406(b) award.
- Court approved fees under 42 U.S.C. § 406(b)(1) for 24.7 hours of work, totaling $30,445.05, net of EAJA.
- Order requires fees to be paid to counsel with refund of EAJA amount to plaintiff; defendant did not oppose.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the 406(b) fee amount reasonable under Gisbrecht and Crawford? | Bosavanh argues 25% of past-due is appropriate. | N/A (no opposition filed) | Fee is reasonable; no reduction warranted. |
| Does the 406(b) award get offset by the EAJA award? | N/A | N/A | Yes; 406(b) is offset by EAJA award; net payable to counsel after credit. |
| Should any reduction apply for substandard performance or dilatory conduct per Crawford? | N/A | N/A | No reduction; counsel performed competently and efficiently. |
| Is the requested fee amount proportionate to benefits and risk? | N/A | N/A | Not excessively large in relation to the $121,780.20 past-due benefits and risks assumed. |
| Should the court order refund of the EAJA amount to plaintiff? | N/A | N/A | Yes; counsel to refund $3,168.59 to plaintiff. |
Key Cases Cited
- Gisbrecht v. Barnhart, 535 U.S. 789 (2002) (limits contingency fees to 25% and requires reasonableness review)
- Crawford v. Astrue, 586 F.3d 1142 (2009) (factors for reasonableness of 406(b) fees and respect for fee agreements)
- Hearn v. Barnhart, 262 F. Supp. 2d 1033 (N.D. Cal. 2003) (recognizes risk of representation and need for reasonable fees)
