(SS)Macias v. Commissioner of Social Security
Filing
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ORDER GRANTING Amended Motion for Attorney Fees pursuant to 42 U.S.C. § 406(b) 21 , 28 signed by Magistrate Judge Barbara A. McAuliffe on 9/16/2022.(Lundstrom, T)
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UNITED STATES DISTRICT COURT
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FOR THE EASTERN DISTRICT OF CALIFORNIA
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JUAN A. MACIAS,
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Plaintiff,
v.
COMMISSIONER OF SOCIAL
SECURITY,
Case No. 1:19-cv-01187-BAM
ORDER GRANTING AMENDED MOTION
FOR ATTORNEY’S FEES PURSUANT TO
42 U.S.C. § 406(b)
(Docs. 21, 28)
Defendant.
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I.
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Steven G. Rosales (“Counsel”), attorney for Juan A. Macias (“Plaintiff”), filed a motion
Introduction
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for attorney fees pursuant to 42 U.S.C. § 406(b) on March 15, 2022. (Doc. 21.) The motion was
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served on Plaintiff and contained notice that any response should be filed within fourteen (14)
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days. (Id. at 1-2, 22.) Plaintiff did not file a response.
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On August 11, 2022, the Commissioner filed a response to the motion, and provided an
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analysis of the fee request. The Commissioner noted discrepancies in amounts requested or
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received by Counsel, including payment of $6,000.00 in fees under section 406(a). (See
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generally Doc. 27.) Thereafter, Counsel filed an amended motion for attorney fees with adjusted
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amounts. (Doc. 28.) Plaintiff was served with a copy of the amended motion on August 16,
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2022. (Doc. 30.) Plaintiff has not objected or otherwise responded to the amended fee request.
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Having considered the amended motion and its supporting documentation, as well as the
record in this case, and as detailed below, the Court will grant the amended motion.
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II.
Relevant Background
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Plaintiff, through Counsel, filed this action challenging the denial of social security
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benefits on August 29, 2019. (Doc. 1.) On March 8, 2021, the Court issued an order reversing
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the Commissioner’s denial of benefits and remanding the action for further proceedings. (Doc.
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17.) Judgment was entered in Plaintiff’s favor. (Doc. 18.) On June 2, 2021, the Court approved
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the parties’ stipulation to award Plaintiff attorney fees of $4,400.00 pursuant to the Equal Access
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to Justice Act (“EAJA”), 28 U.S.C. § 2412. (Doc. 20.)
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On remand, an administrative law judge issued a partially favorable opinion. (Doc. 21-2.)
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Past benefits were awarded in the amount of $62,780.00; 25% of that amount is $15,695.00.1
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(Doc. 27-1, Ex. 1 to Declaration of Ellinor Coder.) The Commissioner withheld the $15,695.00
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from Plaintiff’s past due benefits to pay her lawyer, and paid Counsel $6,000.00. Following
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payment, the Commissioner withheld the remaining amount of $9,695.00. (Id.) Counsel also
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previously received payment of $4,400.00 in EAJA fees. (Doc. 28 at 1) (“the EAJA fees
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previously paid in the amount of $4,400.00.”)
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In the amended motion, Counsel seeks approval of attorney fees in the amount of
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$15,695.00, which is equal to 25% of the amount withheld by the Commissioner. (Doc. 28 at 2.)
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Counsel represents that approval of the fee will have “the net effect of Counsel keeping the
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$6,000 already received, receiving the additional $9,695.00 the Social Security Administration
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has withheld, with $4,400.00 to be refunded as a credit for the [EAJA] payment for a net fee of
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$11,295.00.” (Id. at 2.)
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Counsel contends that the 25% fee amount is reasonable considering the services
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expended and the results achieved. (See Doc. 21 at 8.) As noted, Plaintiff did not file any
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objection to Counsel’s amended request.
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The award letter was issued after Counsel’s fee petition, but prior to Counsel’s amended
petition.
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II.
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An attorney may seek an award of fees for representation of a Social Security claimant
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Legal Standard
who is awarded benefits:
Whenever a court renders a judgment favorable to a 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 . . . .
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42 U.S.C. § 406(b)(1)(A); see also Gisbrecht v. Barnhart, 535 U.S. 789, 794 (2002) (Section
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406(b) controls fees awarded for representation of Social Security claimants in court). A
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contingency fee agreement is unenforceable if it provides for fees exceeding twenty-five percent
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of past-due benefits. Gisbrecht, supra, 535 U.S. at 807. “[A]n award of section 406(b) fees is
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offset by an award of attorney fees granted under the EAJA.” Jones v. Comm’r of Soc. Sec., No.
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1:17-cv-00846-SAB, 2021 WL 84401, at *2 (E.D. Cal. Jan. 11, 2021) (citing Gisbrecht, 535 U.S.
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at 796.).
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III.
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District courts “have been deferential to the terms of contingency fee contracts in § 406(b)
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cases.” Hearn v. Barnhart, 262 F.Supp.2d 1033, 1037 (N.D. Cal. 2003). However, the Court must
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review contingent-fee arrangements “as an independent check, to assure that they yield
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reasonable results in particular cases.” Gisbrecht, 535 U.S. at 807. In doing so, the Court should
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consider “the character of the representation and the results the representative achieved.” Id. at
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808. In addition, the Court should consider whether the attorney performed in a substandard
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manner or engaged in dilatory conduct or excessive delays, and whether the fees are “excessively
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large in relation to the benefits received.” Crawford v. Astrue, 586 F.3d 1142, 1151 (9th Cir.
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2009) (en banc).
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Discussion and Analysis
In this case, after carefully considering the fee agreement and the applicable law, the
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Court finds Plaintiff’s counsel’s requested fees to be reasonable. In support of the original motion
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for attorneys’ fees under 42 U.S.C. § 406(b), Plaintiff’s counsel attached the contingent fee
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agreement which provided for a contingent fee of 25% of the past-due benefits. (Doc. 21-1.)
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Plaintiff’s counsel accordingly accepted the risk of loss in the representation. Plaintiff’s counsel
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additionally expended a total of 23.3 hours while representing Plaintiff before the District Court.
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(Doc. 21 at 6; Declaration of Steven G. Rosales at ¶ 5 and Ex. 4.) The aggregate requested fee
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amount will not exceed the applicable maximum. As a result of Counsel’s work before the Court,
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the matter was remanded for further proceedings and the Commissioner awarded Plaintiff
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benefits.
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Plaintiff’s counsel provided a copy of the amended motion for attorney’s fees to Plaintiff.
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(Doc. 30.) Although served with the original motion and amended motion, Plaintiff did not
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challenge the requested fees which attests to their reasonableness.
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Additionally, there is no indication counsel performed in a substandard manner or
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engaged in severe dilatory conduct to the extent that a reduction in fees is warranted. Plaintiff was
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able to secure a fully favorable decision at the federal court level and a remand for further
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proceedings, including a subsequent award of past-due benefits. Accordingly, the Court finds the
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fees sought by counsel are reasonable in light the results achieved in this action, and the amount,
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which will include fees already received by Counsel in the amount of $6,000.00, will not exceed
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twenty-five percent of the maximum permitted under 42 U.S.C. § 406(b).
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IV.
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Based upon the foregoing, the Court ORDERS:
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1.
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Conclusion and Order
Counsel’s amended motion for attorney fees under 42 U.S.C. § 406(b) (Doc. 28) is
GRANTED;
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The Court approves an attorney fee award of $15,695.00 pursuant to 42 U.S.C. §
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406(b). Counsel shall retain the $6,000.00 already received and shall receive the additional
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$9,695.00 the Social Security Administration has withheld;
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3.
Plaintiff’s counsel shall compensate Plaintiff in the amount of $4,400.00 as an
offset for fees previously awarded pursuant to the EAJA.
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IT IS SO ORDERED.
Dated:
/s/ Barbara
September 16, 2022
A. McAuliffe
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UNITED STATES MAGISTRATE JUDGE
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