Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_06-cv-02109/USCOURTS-azd-2_06-cv-02109-1/pdf.json

Nature of Suit Code: 863
Nature of Suit: Social Security - DIWC/DIWW (405(g))
Cause of Action: 42:205 Denial Social Security Benefits

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Daniel C. Powers, 

Plaintiff, 

vs.

Michael J. Astrue, 

Commissioner of Social Security

Administration, 

Defendant. 

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No. CV 06-2109-PHX-MHM

 ORDER

Presently pending before the Court is Plaintiff’s Motion for Attorney’s Fees Under

42 U.S.C. § 406(b). Counsel seeks $17,737.00 as a reasonable 406(b) attorney fee for his

representation of Plaintiff in this social security case. Defendant filed a Response in which

it states that it does not object to the amount sought. 

Section 406(b) of the Social Security Act provides in relevant part: 

Whenever a court renders a judgment favorable to a claimant . . . who was

represented before the court by an attorney, the court may determine and allow

as part of its judgment a reasonable fee for such representation, no tin excess

of 25 percent of the total of the past-due benefits to which the claimant is

entitled by reason of such judgment. 

42 U.S.C. § 406(b)(1)(A).

In Gisbrecht v. Barnhart, 535 U.S. 789, 807 (2002), the United States Supreme Court

stated that a district court reviews a petition for Section 406(b) fees “as an independent

Case 2:06-cv-02109-MHM Document 37 Filed 07/01/08 Page 1 of 2
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check” to assure that contingency fee agreements between Social Security claimants and their

attorneys will “yield reasonable results in particular cases.” Agreements are not enforceable

to the extent that they provide for fees exceeding 25 percent of the past-due benefits. Id.

Within the 25 percent boundary, the attorney “must show that the fee sought is reasonable

for the services rendered.” Id. The court should consider the character of the representation

and the results achieved in making its determination. Id. at 808. Attorney’s fees may be

reduced in certain circumstances. For example, if the attorney is responsible for delay, a

reduction is in order so that the attorney will not profit from the accumulation of benefits

during the pendency of the case in court. Id. Also, if the benefits are large in comparison

to the amount of time counsel spent on the case, a downward adjustment is similarly in order.

Id.

Plaintiff’s counsel seeks $17,737.00. This amount is subject to the Equal Access to

Justice Act (“EAJA”) offset of $5,800.00, resulting in a net award out of pocket of

$11,937.00. In counsel’s application for fees under the EAJA, counsel indicated that he

expended 32.3 attorney hours representing Plaintiff at the district court level. This results

in an average attorney’s fee rate of $549.13 per hour ($17,737.00 divided by 32.3 hours).

In light of the outcome counsel achieved for his client and the contingent and risky nature

of the recovery, the Court finds the amount sought to be reasonable under Gisbrecht. 

Accordingly, 

IT IS ORDERED, granting Plaintiff’s Attorney’s Motion for Award of Attorney’s

Fees Under 42 U.S.C. § 406(b) (Doc. 33).

DATED this 27th day of June, 2008.

Case 2:06-cv-02109-MHM Document 37 Filed 07/01/08 Page 2 of 2