Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-almd-3_14-cv-00203/USCOURTS-almd-3_14-cv-00203-1/pdf.json

Nature of Suit Code: 864
Nature of Suit: Social Security - SSID Title XVI
Cause of Action: 42:405 Review of HHS Decision (SSID)

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IN THE DISTRICT COURT OF THE UNITED STATES

FOR THE MIDDLE DISTRICT OF ALABAMA

EASTERN DIVISION

LINDA M. ADETUNJI, )

)

Plaintiff, )

)

v. ) CIVIL ACTION NO. 3:14cv203-CSC

) (WO)

CAROLYN W. COLVIN, )

Acting Commissioner of Social Security, )

)

Defendant. )

MEMORANDUM OPINION AND ORDER

On July 1, 2015, the plaintiff filed a motion for attorney’sfees pursuant to 42 U.S.C.

§ 406(b) seeking $3,247.45 in attorney’s fees. See Doc. # 20. According to plaintiff’s

counsel, the Social Security Administration withheld $9,247.45 from the plaintiff’s award

of past due benefits for payment of attorney’s fees which represents 25 percent of the past

due benefits awarded. (Doc. # 20 at 1). Plaintiff’s counsel initially requested $3,247.45

from the amount withheld because counsel received a check in the amount of $6,000.00 for

work performed at the administrative level. (Id. at 1-2). However, the Social Security

Administration determined that because counsel had not filed a petition to receive fees, he

had erroneously received the award of $6000.00. Plaintiff’s counsel has not yet returned

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the $6000.00 received to the Administration, nor has he filed a petition for fees pursuant

to 42 U.S.C. § 406(a) for work performed at the administrative level.

Counsel actually received $5,912.00 because the Social Security Administration assessed an

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administrative service fee. (Doc. # 22, Ex. G)

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Instead of filing a fee petition, on September 17, 2015, the plaintiff filed an amended

motion for attorney’s fees (doc. # 26) seeking fees in the amount of $9,247.45 pursuant to

42 U.S.C. § 406(b), but agrees that the amount of fees would be offset by the $6000.00 he

has already received for work performed at the administrative level. See 42 U.S.C. §

406(a). On September 23, 2015, the Commissioner filed a response to the amended motion

for attorney’s fees in which the Commissioner “does not object to an award of 406(b) fees

in the amount sought” but requested that the court offset the award by the $6000.00

previously received. See Doc. # 28.

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To clarify the position of the parties, the court heard oral argument on the motions

on October 19, 2015. At oral argument, plaintiff’s counsel requested that he be awarded

fees in the amount of $9,247.45 but that he only be paid $3,247.45. The United States

reiterated that it does not oppose the award of fees in the amount sought, provided that the

amount awarded be offset by the monies already received by counsel.

Although plaintiff’s counsel could petition for an award of $6,000 in attorney’sfees

for work performed at the administrative level, he has not done so. See 42 U.S.C. § 406(a).

This court is not authorized to award feesfor work done at the administrative level. Instead

of repaying the amount awarded, or petitioning the Commissioner for payment of fees for

work done at the administrative level, by seeking an award of fees in the amount of

The plaintiff’s counsel was also previously awarded $2,497.50 in fees under the Equal Access to 2

Justice Act (“EAJA”). (Doc. # 19). However, because the Department of the Treasury applied this amount

to a debt owed by the plaintiff, counsel did not receive any EAJA fees. (Doc. #26, Ex. 6). 

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$9,247.45 pursuant to 42 U.S.C. § 406(b), plaintiff’s counsel seeks to increase his hourly

rate in this court. The court will not engage in such creative accounting. Consequently,

after deducting the amount of fees which the plaintiff’s attorney could receive at the

administrative level, $3,247.45 remains for an award of fees under § 406(b).

The plaintiff entered into a contingency fee agreement with counsel in which the

plaintiff agreed to payment of attorney’s fees in the amount of 25 percent of any past due

benefits awarded to her. (Doc. # 26, Ex. 1). On March 21, 2014, the plaintiff sought

review of the Commissioner’s adverse decision in this court. (Compl., Doc. # 1). Pursuant

to 28 U.S.C. § 636(c)(1) and M.D. Ala. LR 73.1, the parties consented to entry of final

judgment by the United States Magistrate Judge. On August 26, 2014, the court remanded

this case to the Commissioner for further proceedings pursuant to sentence four of 42

U.S.C. § 405(g). (Docs. # 14 & 15).

On May 27, 2015, the plaintiff was awarded past due benefits in the amount of

$36,989.80. (Doc. # 26, Ex. 2).

While the United States does not oppose the award of fees, the court must

independently determine whether an award of attorney’sfeesin the amount of $3,247.45 is

reasonable in this case. The plaintiff’s counsel asserts that he expended 25.25 hours

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A fee of $9,247.45 equates to an approximate hourly rate of $366.23 for work performed in this 3

court. 

The court notes that plaintiff’s counsel billed three (3) hours to draft the original fee petition which 4

contained 4.5 pages of argument and seven exhibits, and then billed an additional 2.5 hours to draft an amended

petition which added little in the way of argument and attached the same exhibits. The expenditure of 5.5 hours

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Case 3:14-cv-00203-CSC Document 35 Filed 10/30/15 Page 3 of 5
representing the plaintiff in this court which equates to an hourly rate of $128.61.

In Grisbrecht v. Barnhart, 535 U.S. 789, 794 (2002), the Supreme Court examined

the question of attorney’s fees in conjunction with contingency fee agreements in Social

Security disability cases. Specifically, the Court held that “§ 406(b) does not displace

contingent-fee agreements as the primary means by which fees are set for successfully

representing Social Securitybenefits claimsin court. Rather § 406(b) callsfor courtreview

of such arrangements as an independent check, to assure that they yield reasonable results

in particular cases.” 535 U.S. at 807. The contingency fee agreement in this case does not

exceed the 25 percent ceiling established by § 406(b). However, it is not sufficient for the

court to simply accept 25 percent of past due benefits as a reasonable attorney fee.

Courtsthat approach fee determinations bylooking first to the contingent-fee

agreement, then testing for reasonableness, have appropriately reduced the

attorney’s recovery based on the character of the representation and the

results the representation achieved.

Gisbrecht, 535 U.S. at 808.

“Within the 25 percent boundary . . . the attorney for the successful claimant must

show that the fee sought is reasonable for the services rendered.” Id., at 807. The burden

is on plaintiff’s counsel to demonstrate the reasonableness of the requested fee. Id. An

award of attorney’s fees in the amount of $3,247.45 for 25.25 hours of work over a two

year period is reasonable. The hourly rate of the award would equal $128.61 which the

to draft the fee petitions borders on the unreasonable but because the Commissioner does not object to the

amount of hours sought, the court will allow them. 

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court concludes is reasonable on its face. The United States does not object to the award,

and the court’s judgment about reasonableness is informed by Gisbrecht’s conclusion that

Congress did not mean to “outlaw” lawful contingent fee agreements. Counsel is

experienced in representing Social Security claimants, and he has represented over eighty

(80) Social Security claimants for a period of over ten (10) years. He regularly practices

in this court and the court isfamiliar with his work. Consequently, the court concludesthat

payment in the amount of $3,247.45 which equals 25% of the past due benefits (minus the

$6000.00 that is available for work performed at the administrative level) would be

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reasonable under the circumstances of this case. Accordingly, it is

ORDERED and ADJUDGED that, pursuant to the 42 U.S.C. § 406(b), the petition

for attorney’s fees be and is hereby GRANTED to the extent that counsel be and is hereby

AWARDED $3,247.45 as a reasonable attorney’s fee, and the Commissioner shall pay to

the plaintiff’s attorney$3,247.45 ofthe amount previouslywithheld fromthe plaintiff’s past

due benefits.

Done this 30th day of October, 2015.

/s/Charles S. Coody

CHARLES S. COODY

UNITED STATES MAGISTRATE JUDGE

Although plaintiff’s counsel seeks to avoid refunding the previously awarded $6,000.00 to the

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Commissioner, and desires the court to offset the award of attorney’sfees by that amount, because the plaintiff

has not filed a petition for fees for work performed at the administrative level, the court cannot will not offset

an award of fees in this court for that work. 

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