(SS) Villegas v. Commissioner of Social Security
1:22-cv-01270-BAM
E.D. Cal.Aug 4, 2023Background
- Plaintiff Alisa Villegas and Defendant Kilolo Kijakazi (Acting Commissioner of Social Security) stipulated to an EAJA fee award after resolution of the underlying Social Security action.
- Parties agreed to attorney fees and expenses totaling $8,500 under the Equal Access to Justice Act, 28 U.S.C. § 2412(d).
- The stipulation specifies that fees shall be payable to Plaintiff, but payment to counsel is conditioned on the Department of the Treasury determining Plaintiff owes no federal debt.
- The stipulation references Astrue v. Ratliff regarding the Treasury Offset Program and the government’s ability to honor assignments of EAJA fees.
- The parties characterized the payment as a compromise settling Plaintiff’s EAJA fee request and a complete release of any EAJA fee claims related to this action.
- The award expressly preserves counsel’s right to seek Social Security Act fees under 42 U.S.C. § 406(b), subject to the EAJA savings clause.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether EAJA fees should be awarded | Villegas sought $8,500 in EAJA fees | Government stipulated to the $8,500 fee award | Court ordered EAJA fees of $8,500 pursuant to the stipulation |
| How payment is made and who receives it | Assignment to counsel; fees payable to counsel if assigned | Payment must first be made to Plaintiff; assignment honored only if no federal debt per Treasury offset rules | Fees to be paid to Plaintiff; if Treasury finds no federal debt, payment will be made directly to counsel per assignment |
| Effect of Treasury Offset / Astrue v. Ratliff | Counsel’s assignment should be honored if no offset | Government must determine and apply any offset; assignment cannot override Treasury offset rules | Government will determine offset status per Astrue; ability to honor assignment depends on offset result |
| Release and reservation of rights | Settlement releases EAJA claims; preserves right to seek §406(b) | Stipulation is a compromise and not an admission of liability; §406(b) fees still possible | Stipulation constitutes full release of EAJA claims here and preserves counsel’s ability to pursue §406(b) fees subject to EAJA savings clause |
Key Cases Cited
- Astrue v. Ratliff, 560 U.S. 586 (2010) (Treasury Offset Program can bar direct payment of EAJA fees to counsel; assignment honored only if no federal debt)