Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_03-cv-01162/USCOURTS-azd-2_03-cv-01162-0/pdf.json

Nature of Suit Code: 863
Nature of Suit: Social Security - DIWC/DIWW (405(g))
Cause of Action: 42:405 Review of HHS Decision (DIWC)

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

JAMES R. PELLIEN,, 

Plaintiff,

vs.

JO ANNE B. BARNHART, 

Commissioner of Social Security, et al., 

Defendants.

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No. CV- 03-1162- PHX- SMM

ORDER

Pending before the Court is Plaintiff counsel's Motion for an Award of Attorney's Fees

Under 42 U.S.C. § 406 (b) (Doc. 30), filed June 2, 2006. After considering the motion and

the Response filed by the Social Security Administration (SSA), the Court finds the following.

BACKGROUND

On June 17, 2003, counsel filed a complaint for judicial review of the decision of the SSA

finding Mr. Pellien not disabled under the Social Security Act and not entitled to Disability

Insurance Benefits under Title II of the Social Security Act. Counsel prepared and filed a

Motion for Summary Judgment based on 294 page administrative record. Thereafter, the

parties entered into a stipulation for remand pursuant to sentence 4 of the Social Security Act.

The Court accepted the stipulation and issued and Order of Remand on February 20, 2004.

DISCUSSION

The Court may award to an attorney "a reasonable fee" for his representation of a claimant

who was awarded past due benefits. 42 U.S.C. §406(b)(1). The fee however may not exceed

25% of the total of the past due benefits. Id. In Gisbrecht v. Barnhart, the Untied States

Case 2:03-cv-01162-SMM Document 33 Filed 04/03/07 Page 1 of 3
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 1The requested amount of §406(b) fees will be subject to the offset of the

$4,500.00 EAJA award which Plaintiff's counsel previously received.

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Supreme Court instructed courts to "approach [§406(b)] fee determinations by looking first

to the contingent fee agreement, then testing it for reasonableness." 535 U.S. 789, 808

(2002). In their discretion, courts may reduce the contingent fee if the fee is out of line with

"the character of the representation and the results...achieved," delay by counsel, or if the

amount of past due benefits is "large in comparison to the amount of time counsel spent on

the case." Id. Additionally, an award of 406(b) fees is offset by any award of attorney's fees

granted under the Equal Access to Justice Act (EAJA). 28 U.S.C. §2412; Gisbrecht, 535 U.S.

at 796.

On February 20, 2004, pursuant to a stipulation for voluntary remand by the parties, the

Court remanded this case to the Commissioner for further proceedings. Thereafter, the SSA

issued a fully favorable decision to Plaintiff. The decision entitled Plaintiff to receive pastdue benefits in the amount of $65, 036.20. Plaintiff's counsel seeks payment of $9,257.55

(minus $4,500.00 for the EAJA fees previously paid) from the past due benefits payable to

Plaintiff.1

 

Plaintiff's counsel's request for $9,257.55 for 35.80 hours expended in litigation amounts

to an effective rate of $258.60 per hour. "Since Gisbrecht...the district courts generally have

been deferential to the terms of contingency fee contracts in § 406(b) cases, accepting that

the resulting de facto hourly rate may exceed those for non-contingency fee arrangements.

Hearn v. Barnhart, 262 F.Supp. 2d 1033, 1037 (N.D. Cal. 2003). In determining the

reasonableness of this amount, the Court considered the bases set forth in Gisbrecht. The

Court finds that none of the bases for the reduction of contingency fees are applicable in this

case. First, the results achieved in this case are substantial, such as the past-due benefits in

the amount of $65, 036.20. Second, there was no question as to the quality of representation

and counsel was not responsible for any delay in the case. Third, the amount of past-due

benefits is not overly large in comparison with the number of hours expended on the case.

Case 2:03-cv-01162-SMM Document 33 Filed 04/03/07 Page 2 of 3
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Moreover, the Court notes that the contingent fee agreement placed the risk of loss on

counsel. Finally, given counsel's expertise in the field, the Court finds that the contingent

fee is reasonable. 

CONCLUSION

Accordingly,

IT IS HEREBY ORDERED that Plaintiff's counsel Eric G. Slepian's Motion for an

Award of Attorney's Fees Under 42 U.S.C. § 406 (b) (Doc. 30) is GRANTED.

IT IS FURTHER ORDERED that attorney Eric G. Slepian is awarded $9,257.55 in

attorney's fees, to be offset by the $4,500.00 previously awarded under the Equal Access to

Justice Act. 

DATED this 2nd day of April, 2007.

Case 2:03-cv-01162-SMM Document 33 Filed 04/03/07 Page 3 of 3