N O T FO R PUB L ICAT IO N UNITED STATES C OUR T OF APPEALS FOR THE NINTH C IR C U IT
SANDR A E. LAB OY Plaintiff - Appe lla nt,
v. C AR OLYN W . C OLVIN, Ac ting C om m issione r of Soc i a l Se c urity De fe nda

nt - Appe lle e . No. 14-15211 D.C . No. 2:11-c v-00596-RLHC W H
M EM O R ANDUM *

Appe a l from

the Unite d

Sta t e s Distric t C ourt for the Distric t of Ne v a da R oge r L. Hunt, Distric t Judge , Pre siding Subm itte d De c e m

be r 11, 2015 Sa n Fran c isc o , C a lifornia B e fore : B YB EE a

nd C H R ISTEN, C irc u it Judge s, a nd C H EN, Distric t Judge
. ** R e a l-pa rty -in-inte re st M arc . V. Ka la gia n a ppe a ls the distric t c ourt’ s orde r gran ting a re duc e d a ttorne y ’ s fe e s a ward a fte r he re pre se nte d San dra E. La boy in he r c la im for Soc ia l Se c urity

be ne fits. W e have jurisdic tion ove r this a ppe a l 

# FIL ED JAN 20 2016 M OLLY C. DW Y ER, CLERK U
. S
. CO URT O F APPEALS

* This disposition is not a ppropria te for public a t ion a

nd is not pre c e de nt e xc e pt a s provide d

by 9th C ir. R . 36-3. ** The Honora

ble Edwa rd M . C h e n , Distric t Judge for the U.S. Distric t C ourt for the Northe rn Distric t of C a lifornia , sitting by de signa tion.pursua

nt to 28 U.S.C
. § 1291. W e re vie w a distric t c ourt’ s a

w ard of a ttorne y ’ s fe e s pursua nt to 42 U.S.C
. § 406(b) for a buse of disc re tion. C

raw ford v . Astrue , 586 F.3d 1142, 1146-47 (9th C ir. 2009) (e n ba nc ). Having re vie we d the re c ord a nd the pa rtie s ’ brie fs on a

ppe a l, we va c a te the distric t c ourt’ s fe e award and re m and. The award of a ttorne y ’ s fe e s in soc ia l se c urity c a se s is gove rne d by

42 U.S.C . § 406. 42 U.S.C
. § 406(a ) gove rns fe e s for the re pre s e ntation of a c la im ant be fore the Soc i a l Se c urity Adm inistra

tion (SSA), while 42 U.S.C . § 406(b) gove rns fe e s for the re p re se n tation of a c la im ant be fore the c ourt. Ea c h se c tion im pose s a se pa ra te 25% c a

p on the a m ount tha

t c an be awarde d to a

n a ttorne y . Se c t ion 406(b) “ lim its only

the a m ount of a

ttorne y ’ s fe e s a

w arde d unde r § 406(b), not the
c om bine d fe e s a

warde d unde r § 406(a ) a nd § 406(b), to 25% of the c la im ant’ s pa st-due be ne fits.” C

lark v . Astrue , 529 F.3d 1211, 1218 (9th C ir. 2008). In the a ppe a l of the SSA’ s de nia l of be ne fits to thedistric t c ourt, the pa rtie s jointly stipula te d to re m and the c a se for a ne w he aring. On re m and, the ALJ found that Pla intiff wa s disa

ble d. The Soc ia l Se c urity C om m issione r a warde d $112,657.00 in pa st be ne fits, a nd withhe ld 25% – $28,164.25 – for a ttorne y ’ s fe e s . 1 Ka la gia n’ s c ontinge nt-fe e a gre e m e nt with M s. La boy tra c ks § 406(a ) a

nd (b) in

1 Pla intiff ha s file d a

n unoppose d m otion a sking this c ourt to ta k e judic ia l notic e of the SSA’ s le tte r on the withholding of pa st-due be ne fits for a ttorne y ’ s fe e s . W e G RANT Pla i n tiff’ s m otion. S e e F E D R
. E V I D . 201(b)(2). 1 4
- 1 5 2 1 1 2providing for se pa ra t e fe e re c ove ry

for work be fore the a ge n c y and the c ourt. Unde r tha t a gre e m e nt, for re pre se ntation be fore the c ourt, Ka la g ia n wa s e n title d to 25% of the pa st-due be ne fits a warde d to La

boy . Ka la gia

n m ove d for a ttorne y ’ s fe e s for work be fore the distric t c ourt pursua nt to 42 U.S.C . § 406(b), re q ue sting $20,000.00 (71% of the

c ontra c t a

m ount). The distric t c ourt re d uc e d the re que ste d fe e a ward to $5,914.49, re

pre se nting 21% of the

c o ntra c t fe e , be c a

use only 21% of the t ota l hours wa s spe nt be fore the c ourt a s oppose d to hours spe nt be fore the
a ge nc y . This 21% a

p portionm e nt wa s a

n a buse of disc re tion be c a

u se it wa s ba se d on the a ggre ga te tim e spe nt be fore both the c ourt a nd the a ge nc y , a

nd the distric t c ourt
a ssum e d tha t the a ggre ga te wa s subje c t to a single 25% lim it. Unde r C lark , the 25% c a p in § 406(b) a

p plie s only

to fe e s for re pre s e ntation be fore the c ourt. Suc h fe e s are a sse s se d inde pe nde nt of fe e s for work be fore the a ge n c y . Like wise , the fe e a gre e m e nt a lso provide d for se pa ra te fe e awards for a ge nc y an d c ourt re pre se ntation. Ac c ordingly , we va c a te the distric t c ourt’ s a ward of a ttorne y ’ s fe e s a

nd
re m and this c a se to the distric t c ourt for re a sse ssm e nt of a n a ppropria te fe e . On
re m and, the distric t c ourt should only c onside r the tim e spe nt be fore the c ourt in
awarding a

ttorne y ’ s fe e s unde r § 406(b), a nd should be g in its a

na ly sis “by

looking

1 4
- 1 5 2 1 1 3first to the c ontinge n t-fe e a gre e m e n t, the n te sting it for re a sona

ble ne s s.” Gisbre c h t
v . Barnhart , 535 U.S. 789, 808 (2002). In a sse s sing the re a sona ble ne ss of the fe e a gre e m e nt, the distric t c o urt should not sta rt with the lode sta

r c a lc u lation, but should inste a d c onside r “ ‘ t he c ha ra c te r of the re pre se ntation a n d the re sults the
re pre se ntative a c hie ve d.’ ” C raw ford , 586 F.3d a

t 1151 (quoting Gisbre c ht , 535 U.S. a t 808). The lowe r c o urt m ay a pply a downwa

rd a djustm e nt in the e ve nt of

“ substa n da rd pe rform anc e , de la

y , or be n e fits tha

t a re not in proportion to the tim e spe n t on the c a s e .” C

raw ford , 586 F.3d a

t 1151 (c iting Gisbre c ht , 535 U.S. a t 808). The distric t c ourt m a y a lso re quire c ounse l to submit a re c ord of hours spe nt
and a sta te m e nt of norm a l hourly

billing c ha

rge s, but a

lode sta r a na ly sis should be
use d only a s a n a id (a nd not a ba se line ) in a sse ssing there a sona ble ne ss of the fe e . Id. If the distric t c ourt re duc e s the re que ste d fe e award a s unre a sona ble , it m ust provide a “ c onc ise but c le ar e xpla

n a tion of its re a sons for the fe e award.” C raw f ord , 586 F.3d a

t 1152 (inte rna l quota

tions a nd c ita t ion om itte d). RE V E RSE D and RE M ANDE D.

1 4
- 1 5 2 1 1 4