(SS) Rangel v. Commissioner of Social Security
1:16-cv-01895
E.D. Cal.Jun 30, 2020Background:
- Rangel sued for review of a Social Security denial on December 20, 2016; the Court granted judgment and remanded under Sentence Four on March 27, 2018.
- Counsel had a contingent-fee agreement providing for 25% of any backpay awarded for judicial relief.
- The Commissioner certified approximately $45,861 in retroactive (past-due) benefits to Rangel.
- Counsel sought $11,465.25 (25% of retroactive benefits) under 42 U.S.C. § 406(b); counsel reported 31.5 hours litigating the district-court matter.
- An EAJA fee of $6,000 had earlier been agreed and awarded; the commissioner did not oppose the §406(b) motion and Rangel filed no objections.
- The court found the requested §406(b) fee reasonable but ordered counsel to refund $6,000 to Rangel to offset the prior EAJA award.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Reasonableness of 25% §406(b) fee | 25% contingency is authorized; counsel spent 31.5 hours and obtained reversal/remand so fee is reasonable | No response | Fee of $11,465.25 is reasonable and allowed under §406(b) (no reduction needed) |
| Offset of prior EAJA award | Counsel requested §406(b) fee but acknowledged prior $6,000 EAJA award | No response | §406(b) award must be offset by $6,000; counsel ordered to refund that amount to Rangel |
Key Cases Cited
- Gisbrecht v. Barnhart, 535 U.S. 789 (2002) (courts must respect contingent-fee agreements but test for reasonableness under §406(b))
- Crawford v. Astrue, 586 F.3d 1142 (9th Cir. 2009) (district courts should look first to the contingent-fee agreement when assessing §406(b) fees)
- Craig v. Secretary, Department of Health & Human Services, 864 F.2d 324 (4th Cir. 1989) (Commissioner has standing to challenge §406(b) awards)
- Cotter v. Bowen, 879 F.2d 359 (8th Cir. 1989) (§406(b) fee awards must balance incentive for counsel against depletion of claimant's benefits)