Sinkler v. Berryhill
305 F. Supp. 3d 448
W.D.N.Y.2018Background
- Plaintiff filed suit seeking review of a denial of Supplemental Security Income; the district court reversed and remanded. Counsel obtained an EAJA fee award of $6,500 by stipulation.
- On remand the ALJ granted benefits; the Commissioner issued a notice awarding $67,404 in past-due benefits.
- Plaintiff's counsel moved for § 406(b) fees seeking $16,851 (25% cap) and pledged to refund the EAJA award if granted.
- The Commissioner did not oppose the amount but noted counsel received the notice of award in late December 2016 and filed the § 406(b) motion over six months later, raising timeliness issues.
- The court analyzed whether Rule 54(d)(2)(B) (with equitable tolling per Walker) or Rule 60(b)(6)/reasonableness (per McGraw) governs timeliness, and considered case law and policy implications.
- The court held Rule 54(d)(2)(B) applies with equitable tolling until counsel is notified of the notice of award; because counsel filed more than 14 days after notification and offered no justification, the § 406(b) motion was untimely and denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Which Federal Rule governs timeliness of a § 406(b) fee motion? | Motion should be judged by a "reasonable time" standard (Rule 60/broad equitable standard). | Rule 54(d)(2)(B) governs timing; if applied literally, equitable tolling may be needed. | Rule 54(d)(2)(B) governs; apply equitable tolling (per Walker) until counsel is notified of the notice of award. |
| Was counsel's § 406(b) motion timely when filed ~6 months after notice of award? | The filing was acceptable; amount reasonable and Commissioner did not oppose. | Commissioner flagged the 6+ month delay and questioned timeliness. | Untimely: counsel filed well beyond the 14-day tolling window after notice and offered no justification; motion denied. |
| If McGraw/reasonableness applied, would the delay still be excused? | (Implied) 6 months can be reasonable in some circumstances. | (Implied) Delay must be justified; long unexplained delays are not reasonable. | Even under McGraw's reasonableness test, the unexplained six-month delay was not reasonable; motion denied. |
| Duty of court vs. Commissioner when Commissioner does not object to timeliness | Court should accept non-opposition. | Commissioner has trustee-like role but often declines to raise timeliness; non-opposition does not bind court. | Court must independently evaluate timeliness and reasonableness even if the Commissioner does not object. |
Key Cases Cited
- Gisbrecht v. Barnhart, 535 U.S. 789 (court must independently review reasonableness of contingent-fee § 406(b) agreements)
- Wells v. Sullivan, 907 F.2d 367 (2d Cir. 1990) (factors for § 406(b) reasonableness inquiry)
- Walker v. Astrue, 593 F.3d 274 (3d Cir. 2010) (apply Rule 54 with equitable tolling until notice of award is issued/received)
- Pierce v. Barnhart, 440 F.3d 657 (5th Cir. 2006) (Rule 54 applies; district courts may allow refiling outside 14-day window)
- McGraw v. Barnhart, 450 F.3d 493 (10th Cir. 2006) (advocates reasonableness standard and Rule 60(b)(6) approach)
