Monteith v. Commissioner of Social Security
4:18-cv-04481
N.D. Cal.Jun 15, 2021Background
- Plaintiff Cindy Monteith applied for SSDI in 2014; initial denials and an adverse ALJ decision were followed by this court’s remand for further proceedings.
- On remand, an ALJ issued a fully favorable decision (Dec. 9, 2020), awarding Plaintiff retroactive benefits (documents indicate $54,286).
- Retainer permitted up to 25% of past-due benefits; counsel Lawrence Rohlfing seeks $8,173 under 42 U.S.C. § 406(b).
- Rohlfing reports 16.95 total hours (12.75 attorney, 4.2 paralegal), yielding an effective hourly rate of $641.02 based on the requested fee.
- The court previously awarded Plaintiff $3,000 in EAJA fees; Rohlfing will refund that amount if § 406(b) fees are approved.
- The Commissioner does not oppose the fee request and served a trustee-style analysis; the court granted the § 406(b) award and ordered the EAJA refund.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether $8,173 under § 406(b) is reasonable | Fee is below 25% cap, hours reasonable, contingency risk justifies effective hourly rate | Commissioner does not oppose; provided neutral trustee analysis of reasonableness | Granted: $8,173 awarded; fee is reasonable relative to benefits achieved |
| Role of lodestar in § 406(b) review | High effective hourly rate is acceptable given contingency nature | Suggests evaluating reasonableness (lodestar can inform) | Lodestar may be considered but is not the baseline; contingency agreement governs reasonableness |
| Interaction with EAJA award | Counsel requests § 406(b) award and will refund EAJA amount to client | Commissioner notes offset requirement; acts as trustee to protect claimant | Counsel must refund the $3,000 EAJA award to Plaintiff; § 406(b) award stands independently |
Key Cases Cited
- Gisbrecht v. Barnhart, 535 U.S. 789 (court review required to ensure contingency-fee agreements yield reasonable § 406(b) awards)
- Crawford v. Astrue, 586 F.3d 1142 (lodestar is an aid, not baseline; consider character of representation and results)
- Parrish v. Comm’r of Soc. Sec. Admin., 698 F.3d 1215 (§ 406(b) compensates attorney for federal-court work that produced past-due benefits)
- Laboy v. Colvin, [citation="631 F. App'x 468"] (lodestar may inform but not control § 406(b) reasonableness)
- Hearn v. Barnhart, 262 F. Supp. 2d 1033 (district courts typically defer to contingency contract terms in § 406(b) awards)