Rivera v. Commissioner of Social Security
Filing
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ORDER Regarding 17 Motion for Attorney Fees Pursuant to 42 U.S.C. 406 (b), signed by Magistrate Judge Dennis L. Beck on 3/22/2012. (Figueroa, O)
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UNITED STATES DISTRICT COURT
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EASTERN DISTRICT OF CALIFORNIA
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JUANITA I. RIVERA,
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Plaintiff,
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v.
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MICHAEL J. ASTRUE, Commissioner
of Social Security,
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Defendant.
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1:09cv01971 DLB
ORDER REGARDING MOTION FOR
ATTORNEY FEES PURSUANT TO 42 U.S.C.
§ 406(b)
(Document 17)
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Petitioner Steven G. Rosales (“Counsel”), attorney for Plaintiff Juanita I. Rivera, filed the
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instant motion for fees on January 31, 2012. Counsel requests fees in the amount of $14,570.65
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pursuant to 42 U.S.C. § 406(b)(1). Defendant did not file an opposition.
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BACKGROUND
Plaintiff filed this action on November 2, 2009. On September 28, 2010, the Court found
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that the underlying decision of the Administrative Law Judge (“ALJ”) was not supported by
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substantial evidence. The Court reversed the ALJ’s decision and remanded the case for further
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proceedings. Pursuant to the Court’s order, the Clerk of the Court entered judgment in favor of
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Plaintiff.
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On November 1, 2010, the Court granted the parties’ stipulation for attorney’s fees and
expenses pursuant to the Equal Access to Justice Act (“EAJA”) in the total amount of $4,000.00.
On September 30, 2011, ALJ John Cusker issued a fully favorable decision for Plaintiff.
Exhibit 2, attached to Application. Pursuant to the ALJ’s decision, the Commissioner issued a
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Notice of Award on October 24, 2011. Exhibit 3, attached to Application. The Notice indicates
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that Plaintiff is entitled to past-due monthly benefits totaling $58,282.60.
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By this motion, Counsel seeks an award of $14,570.65 for 25.5 hours of attorney time.1
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This amount represents 25% (twenty-five percent) of the past-due award. After crediting
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$4,000.00 received previously pursuant to the EAJA, Counsel requests a net fee of $10,570.65
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from the past-due award.
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DISCUSSION
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42 U.S.C. § 406(b)(1)(A) provides in relevant part:
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Whenever a court renders a 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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In Gisbrecht v. Barnhart, 535 U.S. 789, 807 (2002), the Supreme Court explained that a
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district court reviews a petition for section 406(b) fees “as an independent check” to assure that
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contingency fee agreements between claimants and their attorneys will “yield reasonable results
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in particular cases.” The Court must respect “the primacy of lawful attorney-client fee
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agreements,” id. at 793, “looking first to the contingent-fee agreement, then testing it for
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reasonableness.” Id. at 808; see also Crawford v. Astrue, 586 F.3d 1142 (9th Cir. 2009).
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Agreements are not enforceable to the extent that they provide for fees exceeding 25 percent of
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the past-due benefits. Gisbrecht, 535 U.S. at 807. “Within the 25 percent boundary. . . the
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attorney for the successful claimant must show that the fee sought is reasonable for the services
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rendered.” Id.
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In determining the reasonableness of an award, the district court should consider the
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character of the representation and the results achieved. Id. at 808. Ultimately, an award of
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section 406(b) fees is offset by an award of attorney’s fees granted under the EAJA. 28 U.S.C. §
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2412; Gisbrecht, 535 U.S. at 796.
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Counsel submitted a detailed billing statement. Exhibit 4, attached to Motion.
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In Crawford v. Astrue, the Ninth Circuit recently suggested factors that a district court
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should examine under Gisbrecht in determining whether the fee was reasonable. In determining
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whether counsel met their burden to demonstrate that their requested fees were reasonable, the
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Court noted that (1) no reduction in fees due to substandard performance was warranted, and the
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evidence suggested that counsels’ performance was nothing other than excellent; (2) no reduction
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in fees for dilatory conduct was warranted, as the attorneys in these cases caused no excessive
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delay which resulted in an undue accumulation of past-due benefits; and (3) the requested fees,
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which were significantly lower than the fees bargained for in the contingent-fee agreements, were
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not excessively large in relation to the benefits achieved and when taking into consideration the
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risk assumed in these cases. Crawford, 586 F.3d at 1151-1152.
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Here, there is no indication that a reduction of fees is warranted for substandard
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performance. Counsel is an experienced, competent attorney who secured an extremely
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favorable result for Plaintiff. There is no indication that Counsel engaged in any dilatory conduct
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resulting in excessive delay. Finally, Counsel requests an amount equal to the 25% percent
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contingent-fee that Plaintiff agreed to at the outset of the representation. Exhibit 1, attached to
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Motion. The $14,570.65,000 fee ($10,570.65 net fee after subtracting the previously awarded
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EAJA fee) is not excessively large in relation to the past-due award of $58,282.60. In making
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this determination, the Court recognizes the contingent nature of this case and Counsel’s
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assumption of the risk of going uncompensated. Hearn v. Barnhart, 262 F.Supp.2d 1033, 1037
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(N.D. Cal. 2003).
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ORDER
Based on the foregoing, Counsel’s section 406(b) Motion is GRANTED in the amount of
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$14,570.65. This amount should be payable directly to the Law Offices of Lawrence D.
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Rohlfing. Upon payment, Counsel is directed to refund $4,000.00 to Plaintiff.
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IT IS SO ORDERED.
Dated:
3b142a
March 22, 2012
/s/ Dennis L. Beck
UNITED STATES MAGISTRATE JUDGE
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