Teague v. Astrue

Filing 27

MEMORANDUM OPINION AND ORDER GRANTING 23 Motion for Attorney Fees and 25 Amended Motion for Attorney Fees. Plaintiff's attorney is AWARDED a fee in the amount of $5,143.35 for his services before this Court. It is FURTHER ORDERED that Brock pay Plaintiff $2,468.75, the sum representing the EAJA fee previously awarded, as further set out. Signed by Magistrate Judge Bert W. Milling, Jr on 10/25/2012. (clr)

IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF ALABAMA
SOUTHERN DIVISION
LAURA TEAGUE,

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Plaintiff,
vs.
MICHAEL J. ASTRUE,
Commission of Social Security,
Defendant.

CIVIL ACTION 09-0755-M

MEMORANDUM OPINION AND ORDER
This action is before the Court on Plaintiff’s Attorney’s
Motion for Approval of Attorney’s Fees Under 42 U.S.C. § 406(b)
(Doc. 23), Defendant’s Response (Doc. 24), and Plaintiff’s
Amended Petition for Award of Attorney Fees with accompanying
Memorandum (Docs. 25-26).

After consideration of all pertinent

materials in the file, it is ORDERED, without objection by the
Government, that Plaintiff’s Attorney’s Motion be GRANTED, that
Plaintiff’s attorney, Quinn E. Brock, be AWARDED a fee of
$5,143.35 for his services, and that Brock pay to Plaintiff the
sum of $2,468.75, representing the fee previously awarded to
Brock pursuant to the Equal Access to Justice Act (hereinafter
EAJA).
Plaintiff hired Brock to pursue his claims for a period of
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disability, disability insurance benefits, and Supplemental
Security Income on November 17, 2009 (Doc. 23, Exhibit 3).

At

that time, Plaintiff executed a written contingent fee agreement
through which Brock would receive twenty-five percent of pastdue benefits paid to Plaintiff (id.).
For the past approximately two years and eleven months,
Counsel has prosecuted Plaintiff’s claims before both the Social
Security Administration (hereinafter SSA) and this Court,
commencing a civil action here on November 18, 2009 (Doc. 1).
On August 16, 2010, the undersigned entered a Memorandum Opinion
and Order and Judgment in which the decision of the
Administrative Law Judge (hereinafter ALJ) was reversed and this
action remanded for further administrative proceedings (Docs.
17-18).

On remand, the ALJ rendered a fully favorable decision,

finding Plaintiff entitled to disability benefits (see Docs. 1920).
On December 19, 2010, Plaintiff’s Counsel received a Notice
of Award from the SSA, stating that the amount of $6,000.00 had
been withheld for payment of authorized attorney fees (Doc. 25,
Exhibit 4, p. 3).

Brock has received $6,000.00 in

administrative attorney fees and now requests a fee in the
amount of $5,143.35 for his services before this Court;
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together, these sums equal twenty-five percent of Plaintiff’s
past-due benefits.
On September 26, 2012, Brock filed the pending Motion,
requesting approval of a fee in the amount of $5,143.35 (Docs.
23, 25-26).1

Since filing this action on November 18, 2009,

Counsel has spent a total of twenty-three hours representing
Teague before this Court without compensation (Doc. 25, Exhibit
2).

Defendant has provided no objection to the requested fee

(Doc. 24).
The Social Security Act provides that when a court renders
a favorable judgment to a Social Security 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, not in 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).

The fee

is payable “out of, and not in addition to, the amount of [the]
past-due benefits.”

Id.

Thus, the Act “provides for contingent

fees to be charged to the client, with the amount to be set by
the district court subject to a statutory maximum.”

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Watford v.

Brock filed an Amended Motion and accompanying Memorandum (Docs.
25-26) on October 24, 2012 that more clearly set out his claim for
fees.

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Heckler, 765 F.2d 1562, 1566 (11th Cir. 1985) (citations omitted)
(emphasis in original).
The Supreme Court, in Gisbrecht v. Barnhart, 535 U.S. 789,
805-07 (2002), concluded that Congress designed § 406(b) to
monitor fee agreements between Social Security benefits
claimants and their counsel.

Specifically, the Court held that

Ҥ 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.
Rather, § 406(b) calls for court review of such arrangements as
an independent check, to assure that they yield reasonable
results in particular cases.”

Id. at 807.

The only boundaries

made by Congress are that the fee cannot exceed twenty-five
percent of the total disbursement and that the “fee sought [be]
reasonable for the services rendered.”

Id.

The fee provided for in § 406(b) is in addition to that
provided in § 406(a) which states that the Commissioner may
award attorney’s fees to a successful claimant’s attorney for
work performed before the SSA.

Fees awarded pursuant to §

406(a) and § 406(b) are awarded in addition to any attorney’s
fee a claimant’s attorney may receive pursuant to EAJA, 28
U.S.C. § 2412, if the Commissioner’s position before the Court
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was not “substantially justified.”

Gisbrecht, 535 U.S. at 796.

In order to avoid a double recovery, a claimant’s attorney who
is awarded attorney’s fees under both § 406(b) and EAJA must
refund the lesser amount to his or her client.

Id.

The Gisbrecht Court did not set out the specific facts that
the district courts are to consider when reviewing fees yielded
by a contingent-fee agreement.

It did, however, point to the

following factors which may be considered in reviewing for
reasonableness:

(1) the character of representation; (2) the

result achieved by the attorney; (3) any delay caused by the
attorney; (4) the amount of benefits relative to the time spent
on the action such that the attorney receives a windfall; (5)
fraud or overreaching in making the agreement; and (6) a
requirement that the requested fee does not exceed twenty-five
percent of past-due benefits.

See Gisbrecht, 535 U.S. at 808.

A decision from the Second Circuit Court of Appeals further
noted that “[s]hould the district court find that the agreement
provides an unreasonable fee under the circumstances, the court
may reduce the fee provided it states the reasons for and the
amounts of the deductions.”

Wells v. Sullivan, 907 F.2d 367,

372 (2nd Cir. 1990).
After reviewing the fee petition and accompanying
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documents, the Defendant’s response, and the guidance provided
by Gisbrecht and the opinions cited above, the Court finds that
Brock has diligently represented Plaintiff since November 18,
2009 in this Court and has been successful in obtaining past-due
benefits for Plaintiff.

There is no evidence that Brock

contributed to any undue delay in this action, either before the
Commissioner or before this Court, nor evidence of any fraud or
overreaching in procuring or making the contingent-fee
agreement.

Plaintiff has signed a fee agreement in which he

agrees to the fee being requested by Brock.

The total fee

requested does not exceed twenty-five percent of past-due
benefits and comports with Plaintiff’s contingent-fee agreement
with his attorney.
windfall.

The requested fee is not considered a

The Court finds that the requested fee of $5,143.35

is reasonable for the services rendered before this Court.
By Memorandum Opinion and Order and Judgment entered on
August 16, 2010 (Docs. 21-22), the Commissioner was ordered to
pay Plaintiff’s Counsel $2,468.75 in fees pursuant to EAJA.

In

the instant Motion, Brock requests the Court to include in its
order a provision that he pay Plaintiff $2,468.75, the sum
representing the fee awarded under EAJA and which is currently
held in trust for Plaintiff’s benefit (Docs. 25-26).
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An

attorney’s fee awarded under § 406(b) is subject to a dollarfor-dollar offset by the attorney’s previous fee awarded under
EAJA.
Therefore, it is ORDERED, without objection from Defendant,
that Plaintiff’s Attorney’s Motion for Attorney’s Fees and
Amended Motion for Attorney’s Fees (Docs. 23, 25-26) be GRANTED
and that Plaintiff’s attorney be AWARDED a fee in the amount of
$5,143.35 for his services before this Court.

It is FURTHER

ORDERED that Brock pay Plaintiff $2,468.75, the sum representing
the EAJA fee previously awarded.
DONE this 25th day of October, 2012.

s/BERT W. MILLING, JR.
UNITED STATES MAGISTRATE JUDGE

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