2:14-cv-02352
E.D. Cal.May 17, 2018Background
- Plaintiff David Gridley obtained a remand and favorable judgment from this court reversing the Commissioner’s denial of Supplemental Security Income benefits.
- On remand plaintiff received past-due (retroactive) benefits; counsel had a contingent-fee agreement providing for recovery from those benefits.
- Plaintiff’s counsel moved for § 406(b) attorney’s fees seeking $9,000 (17% of past-due benefits) for ~20.9 hours of work.
- The Commissioner did not oppose the fee request.
- The court evaluated the § 406(b) request for reasonableness under Gisbrecht and Crawford factors, reviewed counsel’s billing, and found no dilatory conduct or substandard performance.
- The court granted the $9,000 § 406(b) award but ordered counsel to reimburse plaintiff $3,666.60 previously awarded under the EAJA.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Entitlement to § 406(b) fees | Counsel seeks fees authorized by § 406(b) after a favorable judgment. | Commissioner did not oppose fee petition. | Court grants fee award under § 406(b). |
| Reasonableness of fee amount | $9,000 (17% of past-due benefits) is reasonable given results and hours. | No opposition contesting reasonableness. | Court finds fee reasonable after applying Gisbrecht/Crawford factors. |
| Contingent-fee agreement primacy | Agreement yields the fee; court should defer then test for reasonableness. | N/A (no opposition). | Court gives primacy to the agreement and tests for excessiveness; finds no reduction needed. |
| EAJA offset | Counsel must not double-dip; prior EAJA award should be credited to claimant. | N/A. | Court orders counsel to reimburse plaintiff $3,666.60 (EAJA) from the § 406(b) recovery. |
Key Cases Cited
- Crawford v. Astrue, 586 F.3d 1142 (9th Cir. 2009) (district courts must respect contingent-fee arrangements and test them for reasonableness under § 406(b))
- Gisbrecht v. Barnhart, 535 U.S. 789 (U.S. 2002) (§ 406(b) allows court review of contingent-fee agreements for reasonableness; lists factors to consider)
- Cotter v. Bowen, 879 F.2d 359 (8th Cir. 1989) (discusses policy of preserving claimants’ past-due benefits while providing counsel incentive)
- Craig v. Secretary, Department of Health & Human Services, 864 F.2d 324 (4th Cir. 1989) (Commissioner has standing to challenge § 406(b) awards)
- Hearn v. Barnhart, 262 F. Supp. 2d 1033 (N.D. Cal. 2003) (recognizes risk assumed by contingency counsel in reasonableness analysis)