1:21-cv-00034
W.D.N.Y.Dec 3, 2024Background
- Plaintiff Anthony J. prevailed in a federal court action challenging a Social Security Administration (SSA) benefits determination.
- Plaintiff's counsel moved for an attorney fee award under 42 U.S.C. § 406(b)(1)(A), seeking 25% of the past-due benefits recovered.
- Plaintiff had a contingency fee agreement with his counsel that allowed up to 25% of past-due benefits as attorney’s fees for court representation.
- Plaintiff was awarded $91,915.72 in past-due benefits; counsel requested a fee of $22,978.93 (25%).
- Defendant Commissioner did not oppose the attorney’s fee motion.
- The court previously awarded $5,429.11 in attorney fees under the Equal Access to Justice Act (EAJA), subject to refund if a higher § 406(b) award was granted.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Reasonableness of § 406(b) fee request | Fee is within 25% limit and reasonable given representation and results | No opposition filed | Granted: Fee request reasonable and not a windfall |
| Refund of EAJA fee | No dispute; agrees to refund if required | No opposition filed | Granted: Must refund $5,429.11 EAJA fee to Plaintiff |
| Enforceability of contingency agreement | Agreement comports with statutory and case law limits | No opposition filed | Upheld: Agreement is valid under § 406(b) |
| Reasonableness in light of hours worked and rates | High hourly rate justified by results and precedents | No opposition filed | Approved: Rate reasonable based on precedent, results, and incentive policy |
Key Cases Cited
- Gisbrecht v. Barnhart, 535 U.S. 789 (2002) (court must assess the reasonableness of contingency fee agreements within statutory limits in Social Security cases)
- Wells v. Sullivan, 907 F.2d 367 (2d Cir. 1990) (factors for determining reasonableness of § 406(b) fees, including risk, results, and potential for windfall)
- Fields v. Kijakazi, 24 F.4th 845 (2d Cir. 2022) (district court's analysis of contingency fees in Social Security cases begins with the parties' fee agreement)
