Reyna v. Commissioner of Social Security

Filing 42

ORDER GRANTING Motion For Attorneys' Fees under 42 USC 406(b), document 40 . The Court GRANTS plaintiff's petition for attorneys' fees of $10,939.50, net of the previously awarded fee of $7,527.63, under the Equal Access to Justice Act, for a total amount payable to plaintiff's attorneys of $3,411.87. The balance of funds withheld from plaintiff's past due benefits, $7,527.63, shall be paid to plaintiff. Order signed by Magistrate Judge Sandra M. Snyder on 6/3/2013. (Rooney, M)

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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF CALIFORNIA
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PABLO REYNA,

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Plaintiff,

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CASE NO. 1:09-CV-01970-SMS
ORDER GRANTING MOTION FOR
ATTORNEYS’ FEES UNDER
42 U.S.C. § 406(b)

v.
MICHAEL J. ASTRUE,
Commissioner of Social Security,

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Defendant.
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(Doc. 40)
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Pursuant to 42 U.S.C. § 406(b), Plaintiff moves the Court to grant his attorneys fees of
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$10,939.50. Defendant Commissioner has filed a brief taking no position on Plaintiff’s request.
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Having reviewed the motion and its supporting documentation, as well as the case file, this Court
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awards the requested attorneys’ fees.
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I.

Legal and Factual Background

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On November 6, 2009, Plaintiff filed a complaint in this Court appealing Defendant’s
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denial of his application for disability insurance benefits. On October 25, 2010, Plaintiff and
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attorney Jeffrey Milam of the Law Offices of Jeffrey Milam (“attorneys”) entered a contingent
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fee agreement, providing payment to attorneys of twenty-five per cent of Plaintiff’s past due
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benefits in the event the case was won. By a judgment entered June 9, 2011, this Court
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remanded the matter to the agency for payment of benefits.
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On May 24, 2013, the agency notified Plaintiff of the award of monthly disability benefits
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beginning in August 2005. Twenty-five per cent of Plaintiff’s past due benefit total of $43,758.00
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equals $10.939.50.00. Previously, the Court ordered paid to Plaintiff a fee of $7527.63 under the

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Equal Access to Justice Act (EAJA). Plaintiff now requests attorneys’ fees of $10,939.50.

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II.

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Discussion

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Whenever a court renders judgment favorable to a claimant under this subchapter
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 . . . . .

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42 U.S.C. § 406(b)(1)(A).

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The Court must review contingent-fee arrangements “as an independent check, to assure

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that they yield reasonable results in particular cases.” Gisbrecht v. Barnhart, 535 U.S. 789, 807

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(2002). Section 406(b) “instructs courts to review for reasonableness” fees yielded under

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contingent fee agreements, taking into account both the character of the representation and the

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results achieved. Gisbrecht, 535 U.S. at 808. Congress has provided a single guideline:

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Contingency agreements are unenforceable to the extent that they provide for fees in excess of

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twenty-five per cent of past-due benefits. Id. at 807. Within the twenty-five percent corridor, the

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attorney for a successful claimant must demonstrate that the fee is reasonable for the services that

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he or she provided. Id.

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“[D]istrict courts generally have been deferential to the terms of contingency fee contracts

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in § 406(b) cases.” Hearn v. Barnhart, 262 F.Supp.2d 1033, 1037 (N.D.Cal. 2003). Attorneys

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who agree to represent claimants pursuant to a contingent fee agreement assume the risk of

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receiving no compensation for their time and effort if the action does not succeed. Id. Here,

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Plaintiff’s attorneys accepted substantial risk of loss in representing Plaintiff, whose application

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had already been denied at the administrative level. Plaintiff agreed to the contingent fee.

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Working efficiently and effectively, the attorneys secured a remand, and ultimately, the award of

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substantial benefits to Plaintiff.

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III.

Conclusion and Order

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Accordingly, this Court hereby GRANTS Plaintiff’s petition for attorneys’ fees of

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$10,939.50, net of the previously awarded fee of $7527.63 under the Equal Access to Justice Act

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(EAJA), for a total amount payable to Plaintiff’s attorneys of $3411.87. The balance of funds

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withheld from Plaintiff’s past due benefits, $7527.63, shall be paid to Plaintiff.

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IT IS SO ORDERED.

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DATED: 6/3/2013

/s/ SANDRA M. SNYDER
UNITED STATES MAGISTRATE JUDGE

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