Whipple v. Commissioner of Social Security
6:23-cv-06290
W.D.N.Y.May 21, 2025Background
- Plaintiff Kevin W. filed a case seeking review of the Commissioner's denial of his Supplemental Security Income (SSI) claim.
- The District Court reversed the Commissioner’s decision and remanded the case for further proceedings, after the parties stipulated to remand.
- Plaintiff’s counsel had already received $7,240.00 in fees under the Equal Access to Justice Act (EAJA).
- The Commissioner later found in Plaintiff's favor and withheld $36,988.25 from past-due benefits to cover attorneys’ fees.
- Plaintiff’s counsel filed a timely motion under 42 U.S.C. § 406(b), seeking $32,100.00 in fees, pledging to refund the EAJA fee to Plaintiff.
- The Commissioner did not oppose or support the fee request.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Timeliness of § 406(b) fee application | Application filed within 14 days of benefits award notice | No opposition | Motion is timely |
| Reasonableness of requested § 406(b) attorneys’ fees | Fee is within 25% cap; no fraud; no windfall | No opposition | Fee is reasonable; award granted |
| Necessity to refund previously awarded EAJA fee under § 406(b) | Will refund EAJA fee if § 406(b) fee granted | No opposition | EAJA fee refund to Plaintiff required |
| Whether effective hourly rate constitutes a windfall | Rate aligns with prevailing awards in similar cases | No opposition | No windfall; rate approved |
Key Cases Cited
- Gisbrecht v. Barnhart, 535 U.S. 789 (U.S. 2002) (Court review required for contingency fee agreements under § 406(b), capped at 25%, and only allows reasonable fees)
- Wells v. Sullivan, 907 F.2d 367 (2d Cir. 1990) (Court must ensure no fraud, overreaching, or windfall in fee agreements)
