(SS) Adams v. Commissioner of Social Security
1:12-cv-01338
E.D. Cal.Jul 17, 2014Background
- Plaintiff Desire Sue Adams moves for attorney’s fees under 42 U.S.C. § 406(b) on May 5, 2014.
- Commissioner filed no opposition; provided a late response trusting the motion’s stance.
- Administrative decision remanded to Commissioner on June 14, 2013; EAJA fees awarded Aug. 14, 2013 ($3,401.42).
- March 24, 2014 notice awarded retroactive disability benefits totaling $67,298.00 to Adams.
- Counsel seeks $4,750.00 under § 406(b); EAJA offset must reduce this amount by $2,477.42.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is $4,750.00 reasonable under § 406(b)? | Within 25% cap; reasonable given results and hours (18.8). | Reasonableness tested by Gisbrecht factors; within statutory ceiling. | Yes; fee approved as reasonable. |
| Should § 406(b) fees be offset by EAJA amounts? | Offset required to refund EAJA; full amount to plaintiff. | Offset applies; refund from 406(b) to plaintiff after EAJA deduction. | Offset approved; $2,477.42 to be refunded to Adams. |
| Does contingent-fee agreement govern the 406(b) award? | Agreement provides 25% of past-due benefits. | Court must first respect agreement, then test for reasonableness per Gisbrecht. | Contingent-fee arrangement respected; fee deemed reasonable. |
Key Cases Cited
- Gisbrecht v. Barnhart, 535 U.S. 789 (U.S. 2002) (limits fee to reasonable amount within 25% cap; respect contingent agreement)
- Crawford v. Astrue, 586 F.3d 1142 (9th Cir. 2009) (test reasonableness of § 406(b) fees within 25% boundary)
- Cotter v. Bowen, 879 F.2d 359 (8th Cir. 1989) (contingent-fee awards and reasonableness framework)
- Craig v. Sec’y Dep’t of Health & Human Servs., 864 F.2d 324 (4th Cir. 1989) (agency’s standing to challenge § 406(b) fee awards)