(SS) Campbell v. Commissioner of Social Security
2:18-cv-01991
E.D. Cal.Jul 21, 2021Background
- Plaintiff Shantell Campbell sought Disability Insurance Benefits (Title II) and Supplemental Security Income (Title XVI). The court previously remanded the case on March 4, 2020.
- On remand plaintiff received $81,015 in past-due benefits.
- Plaintiff and counsel had a contingent-fee agreement providing for up to 25% of past-due benefits. Counsel filed for § 406(b) fees requesting $20,253.75 (25% of $81,015).
- The Commissioner did not oppose the request and submitted an analysis instead of an objection.
- The court applied the Gisbrecht/Crawford reasonableness framework, noting counsel spent 26.4 hours, achieved a favorable result, and engaged in no dilatory or substandard conduct.
- The court found the requested fee reasonable, awarded $20,253.75 under § 406(b), directed payment, and ordered counsel to reimburse plaintiff $5,000 previously awarded under the EAJA.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a § 406(b) fee of $20,253.75 (25% of past-due benefits) is reasonable | Fee is authorized by the contingent-fee agreement; counsel obtained successful result and assumed risk; 26.4 hours of work justify fee | Commissioner did not oppose fee and supplied analysis only | Fee is reasonable under Gisbrecht/Crawford; awarded $20,253.75 |
| Whether prior EAJA award offsets the § 406(b) award | Counsel accepts that EAJA must be offset; client should receive EAJA reimbursement | Commissioner did not contest offset | Court ordered counsel to reimburse plaintiff $5,000 EAJA upon receipt of § 406(b) fees |
Key Cases Cited
- Crawford v. Astrue, 586 F.3d 1142 (9th Cir. 2009) (en banc) (discussing §406(b) review and deference to contingent-fee agreements)
- Gisbrecht v. Barnhart, 535 U.S. 789 (U.S. 2002) (establishing the reasonableness standard and factors for §406(b) awards)
- Craig v. Sec'y, Dep't of Health & Human Servs., 864 F.2d 324 (4th Cir. 1989) (recognizing the Commissioner may challenge §406(b) awards)
- Cotter v. Bowen, 879 F.2d 359 (8th Cir. 1989) (explaining the need to balance attorney incentive against depletion of claimant benefits)
- Hearn v. Barnhart, 262 F. Supp. 2d 1033 (N.D. Cal. 2003) (noting counsel assume risk under contingent-fee arrangements)