Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-4_13-cv-01549/USCOURTS-azd-4_13-cv-01549-1/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 (SSID)

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IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Amy Ferber, 

Plaintiff, 

vs.

Carolyn W. Colvin, Acting Commissioner

of Social Security Administration, 

Defendant. 

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No. CV-13-01549-TUC-CRP

ORDER

Plaintiff through counsel has filed a Motion for Attorney Fees Under 42 U.S.C. §

406(b) (Doc. 27, Motion), and a Brief in Support (Doc. 28). Defendant has filed a Response

to the Motion for Attorney Fees. (Doc. 29). This case is before the Magistrate Judge based

on the parties’ consent. (Doc. 10).

On March 31, 2015, the Court filed an Order reversing Defendant’s decision denying

insurance benefits and remanding for an award of benefits. (Doc. 21, Order). On August 30,

2015, the Court filed an Order granting the parties’ Joint Stipulation for an Award of

Attorneys’ Fees to Plaintiff pursuant to the Equal Access to Justice Act (“EAJA”), 28 U.S.C.

§ 2412(d), in the amount of $4,600. (Doc. 26, EAJA Order). 

Plaintiff’s counsel now seeks $10,000 in attorney’s fees for representing Plaintiff on

a contingency fee basis. (Doc. 28 at 2). Plaintiff’s counsel has submitted the Contract for

Case 4:13-cv-01549-CRP Document 30 Filed 11/03/16 Page 1 of 4
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Attorney Representation (Doc. 28-1), the Time Records for the two attorneys who worked

on this case (Doc. 28-2 & 28-3), and the Notice of Award (Doc. 28-4). Defendant has filed

a Response stating no position or no objection to the § 406(b) Motion. (Doc. 29).

Based on the Contract for Attorney Representation, Plaintiff retained counsel and

“agree[d] that my attorney shall charge and receive as the fee an amount equal to twenty-five

percent (25%) of the” past-due benefits award. (Doc. 28-1). Plaintiff was awarded $76,355

in past due benefits and the Social Security Administration withheld $19,088.75 for payment

of attorney fees ( Doc. 28-4). This amount constitutes 25% of Plaintiff’s past-due benefits.

(Id.). Counsel’s requested fee amount of $10,000 is approximately 13% of the past-due

benefits awarded. (Doc. 28 at 8). 

Under 42 U.S.C. § 406(b)(1)(A), when a claimant represented by counsel has received

a favorable judgment, “the court may determine and allow as part of its judgment a reasonable

fee for such representation, not in excess of 25 percent of the total of the past-due benefits[.]”

The Court “review[s] for reasonableness” the fee yielded by contingency fee agreements.

Gisbrecht v. Barnhart, 535 U.S. 789, 808-09 (2002). The Court may consider the character

of the representation, the results achieved, performance, delay, and whether the benefits are

in proportion to the time spent on the case. Crawford v. Astrue, 586 F.3d 1142, 1151 (9th Cir.

2009). 

Plaintiff’s two attorneys claim 25.2 hours of service on this case in the federal district

court. (Doc. 28 at 10, Doc. 28-2 & Doc. 28-3 ). This results in an hourly rate of $396.83

based on the requested $10,000 fee amount. (Doc. 28 at 10). The non-contingent hourly rate

of Plaintiff’s attorney Meghan Miller is $250. (Id.). The Court has considered counsel’s

successful representation of Plaintiff, any delay in the proceedings, the contingency fee

agreement, and the risk inherent in a contingency fee arrangement. 

In reversing the decision of the Commissioner and ordering an award of benefits to

Plaintiff, the Court found that the ALJ erred in the evaluation of the opinions of Plaintiff’s

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treating physician. The ALJ’s decision was unsupported by substantial evidence and based

on legal error. 

Plaintiff’s counsel sought one extension of time regarding the filing of the legal

memorandum in the proceedings before this Court. Plaintiff’s Opening Brief was timely filed.

(Doc. 14-16). The record provides no reason for a reduction in the requested fees award on

the basis of the character of counsel’s representation, the results achieved, or delay in the

proceedings attributable to Plaintiff’s counsel. 

The record does not suggest any reason to question the propriety of the contingency

fee agreement in this case. There is no showing that the fees requested exceed the twentyfive percent cap. The Court is mindful of the contingent-fee nature of this case and the risk

imposed on counsel in agreeing to represent Plaintiff under such terms. 

The district court may reduce a § 406(b) award if “benefits ... are not in proportion to

the time spent on the case.” Crawford, 586 F.3d at 1151 (citing Gisbrecht, 535 U.S. at 808).

“If the benefits are large in comparison to the amount of time counsel spent on the case, a

downward adjustment is ... in order.” Gisbrecht, 535 U.S. at 808. The fee sought must be

reasonable “for the services rendered.” Id. at 807. The reviewing court should not allow a

“windfall.” Id. at 808. 

As noted in Gisbrecht, “§ 406(b) does not displace contingent-fee agreements as the

primary means by which fees are set for successfully representing Social Security benefits

claimants in court.” Gisbrecht, 535 U.S. at 807 However, “§ 406(b) calls for court review

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

particular cases.” Id. (footnote omitted). 

The Court, in its discretion and taking into account counsel’s risk involved in the

contingency fee arrangement in this case, finds that counsel’s request for $10,000 is a

reasonable fee amount. Plaintiff’s attorney’s Motion for attorney fees will be granted.

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Plaintiff’s counsel shall refund to Plaintiff the lesser of the fees awarded under 42 U.S.C. §

406(b) and the Equal Access to Justice Act.

Accordingly,

IT IS ORDERED that Plaintiff’s Attorney’s Motion for Attorney Fees Under 42

U.S.C. § 406(b) (Doc. 27) is granted to the extent that counsel is awarded $10,000 in

attorney’s fees.

IT IS FURTHER ORDERED that Plaintiff’s counsel shall refund to Plaintiff the

lesser of the fees awarded under 42 U.S.C. § 406(b) and the Equal Access to Justice Act.

DATED this 3rd day of November, 2016.

Case 4:13-cv-01549-CRP Document 30 Filed 11/03/16 Page 4 of 4