Goode v. Acting Commissioner of Social Security
3:22-cv-01428
M.D. Fla.May 29, 2025Background
- Plaintiff’s attorney sought a fee award under 42 U.S.C. § 406(b) after prevailing in a Social Security disability action in federal court.
- The request was for $25,744.50, which reflected 25% of the plaintiff’s past-due benefits awarded by the Social Security Administration (SSA).
- Counsel acknowledged she must refund to Plaintiff a previously-awarded Equal Access to Justice Act (EAJA) fee of $6,233.39 and requested the fee net of that amount.
- Defendant (the Commissioner of Social Security) took no position on the petition for § 406(b) fees.
- The fee agreement between Plaintiff and counsel specifically provided for a 25% contingency fee from past-due benefits.
- The Court reviewed the request for reasonableness, considering supporting documentation and the quality of representation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is a 25% contingency fee reasonable under § 406(b)? | Goode argued 25% aligns with both statute and contract and is reasonable. | No opposition. | Yes; 25% is reasonable based on documentation and precedent. |
| Should the § 406(b) award be reduced by the already-paid EAJA fee? | Goode requested deduction to avoid double payment. | No opposition. | Yes; net $19,511.11 to counsel after EAJA offset. |
| Does a contingency fee arrangement control if within statutory limits? | Such agreements should generally be enforced unless they are unreasonable or a product of misconduct. | No opposition. | Yes, but subject to independent reasonableness review by the court. |
| Is the court responsible for reviewing reasonableness of § 406(b) fees? | Goode (implicitly) recognized such necessity. | No opposition. | Yes; Court performed independent check and found requested fee reasonable. |
Key Cases Cited
- Gisbrecht v. Barnhart, 535 U.S. 789 (2002) (Courts must independently review contingent fee agreements under § 406(b) for reasonableness.)
- Wells v. Sullivan, 907 F.2d 367 (2d Cir. 1990) (The best indicator of reasonableness of a contingency fee in a Social Security case is the negotiated agreement between attorney and client.)
- McGuire v. Sullivan, 873 F.2d 974 (7th Cir. 1989) (Courts must assess independently the reasonableness of contingency fee agreements in Social Security cases.)
