Mariconda v. Commissioner of Social Security
1:20-cv-04602
E.D.N.YFeb 18, 2025Background
- Plaintiff Alfred Mariconda received a favorable disability benefits decision from the Social Security Administration (SSA) after a remand.
- The Court had previously awarded Mariconda's attorney, Daniel A. Osborn, $5,465 in fees under the Equal Access to Justice Act (EAJA).
- The SSA withheld $40,584.43 (25% of past-due benefits) to potentially pay as attorney's fees under 42 U.S.C. § 406(b), and Osborn later moved for this amount.
- Osborn's motion for § 406(b) fees was not filed within 14 days of plaintiff’s receipt of the award notice because the notice was initially sent to a different law firm; Osborn filed within 14 days of receiving the notice himself.
- Osborn claimed he never received the prior EAJA fee check because it was presumably stolen, but did not follow up with the SSA within the statutory one-year claim period.
- The Court needed to determine reasonableness and timeliness of the fee application, as well as whether the attorney must refund the EAJA award to the client.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of § 406(b) fee motion | Osborn filed timely upon his receipt of NOA | Not contested | Timely – counted from Osborn’s receipt |
| Reasonableness of § 406(b) fee amount | Fee is 25% as agreed, not a windfall | Not contested | Fee is reasonable |
| Obligation to refund EAJA fee after § 406(b) award | Osborn never received EAJA check | Not reached | Must refund EAJA fee to plaintiff |
| Plaintiff penalty for attorney’s late EAJA follow-up | Attorney cannot be faulted | Plaintiff should not be penalized | Plaintiff should not bear the loss |
Key Cases Cited
- Sinkler v. Berryhill, 932 F.3d 83 (2d Cir. 2019) (application deadline for § 406(b) fees runs from attorney’s receipt of notice)
- Wells v. Sullivan, 907 F.2d 367 (2d Cir. 1990) (setting standards for evaluating reasonableness of fees under § 406(b))
- Fields v. Kijakazi, 24 F.4th 845 (2d Cir. 2022) (factors for determining if requested amount constitutes a windfall)
- Gisbrecht v. Barnhart, 535 U.S. 789 (2002) (requiring attorney to refund the lesser of fees awarded under EAJA or § 406(b))