Gonzales v. Social Security Administration
1:14-cv-00249
D.N.M.Apr 11, 2017Background
- Plaintiff filed suit to obtain past-due Social Security benefits and the Court remanded to the SSA for further proceedings.
- SSA awarded past-due benefits; 25% of those benefits were withheld for attorney fees and SSA had approved a $6,000 contingent fee for work before the agency.
- Past-due benefits totaled $79,499.80; withheld amount remaining after SSA fee was $13,874.95.
- Plaintiff’s counsel seeks additional § 406(b) fees of $13,874.95 for court representation, totaling 25% of past-due benefits with the agency’s prior fee included.
- EAJA fees were previously awarded in the amount of $8,543.00 and must be refunded to the plaintiff if § 406(b) fees are approved.
- Court reviews the § 406(b) request for reasonableness and compliance with the statutory cap before granting the motion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether § 406(b) fees are reasonable and within the 25% cap | Gonzales argues $13,874.95 is reasonable and within 25% of past-due benefits. | Berryhill defers to the court’s discretion; no objection to petition. | Yes; fee amount is reasonable and within cap. |
| Whether EAJA fees must be refunded if § 406(b) fees are awarded | EAJA and § 406(b) can coexist; no refund issue stated by plaintiff. | Because § 406(b) exceeds EAJA, the smaller EAJA amount must be refunded to plaintiff. | EAJA refund required; $8,543.00 refunded to plaintiff. |
Key Cases Cited
- Gisbrecht v. Barnhart, 535 U.S. 789 (U.S. 2002) (limits and guides reasonableness of 406(b) fees)
- McGraw v. Barnhart, 450 F.3d 493 (10th Cir. 2006) (remand-based past-due benefits can support 406(b) fees; reasonable time frame for motions)
- Wrenn v. Astrue, 525 F.3d 931 (10th Cir. 2008) (reasonableness and timing considerations for 406(b) fee awards)