Macdonald v. Commissioner of Social Security

Filing 25

ORDER signed by Magistrate Judge Edmund F. Brennan on 4/10/2020 GRANTING plaintiff's 23 Motion for Attorney Fees. Plaintiff's counsel is AWARDED $12,250 in fees pursuant to 42 U.S.C. § 406(b). (Kastilahn, A)

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UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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PATRICK J. MACDONALD,

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Plaintiff,

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No. 2:16-cv-1046-EFB

v.

ORDER

ANDREW SAUL, Commissioner of Social
Security,
Defendant.

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Pursuant to 42 U.S.C. § 406(b), counsel for plaintiff in the above-entitled action seeks an

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award of attorney fees in the amount of $15,000, which is 18.4 percent of past benefits due to

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plaintiff. ECF No. 23. Plaintiff entered into a retainer agreement with his attorney which

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provides that he would pay counsel 25 percent of any past-due benefits won as a result of the

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appeal in this case. ECF No. 23-2. Counsel spent 14.6 professional hours on plaintiff’s case, and

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a paralegal spent an additional 2.4 hours on the case. ECF No. 23-5.
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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Rather than being paid by the government, fees under the Social Security Act are awarded

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out of the claimant’s disability benefits. Russell v. Sullivan, 930 F.2d 1443, 1446 (9th Cir. 1991),

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receded from on other grounds, Sorenson v. Mink, 239 F.3d 1140, 1149 (9th Cir. 1991).

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However, the 25 percent statutory maximum fee is not an automatic entitlement; the court also

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must ensure that the requested fee is reasonable. Bisbrecht v. Barnhart, 535 U.S. 789, 808-09

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(2002) (“We hold that § 406(b) does not displace contingent-fee agreements within the statutory

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ceiling; instead, § 406(b) instructs courts to review for reasonableness fees yielded by those

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agreements.”). “Within the 25 percent boundary . . . the attorney for the successful claimant must

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show that the fee sought is reasonable for the services rendered.” Id. at 807. A “court may

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properly reduce the fee for substandard performance, delay, or benefits that are not in proportion

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to the time spent on the case.” Crawford v. Astrue, 586 F.3d 1142, 1151 (9th Cir. 2009) (en

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banc).

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After this court remanded for further proceedings, plaintiff was found disabled and

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awarded past-due benefits in the amount of $81,553.72. ECF No. 23 at 9. Plaintiff’s counsel’s

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request for $15,000, which is less than the statutory maximum, would constitute an hourly rate of

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$974.03.1 Counsel did not delay these procedures and his representation of plaintiff was not

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substandard. Indeed, he successfully represented his client’s interests before this court. Although

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the hourly rate exceeds the rate awarded in the majority of social security cases, based on the risk

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of loss taken in representing plaintiff, counsel’s experience in the field of Social Security law, and

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the results achieved in this case, the court finds that fee request is reasonable. See De Vivo v.

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Berryhill, No. 1:15-cv-1332-EPG, 2018 WL 4262007 (E.D. Cal. Sept. 6, 2018) (awarding fees at

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effective hourly range of $1,116.26); Jamieson v. Astrue, No. 1:09cv0490 LJO DLB, 2011 WL

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587096 (E.D. Cal. Feb. 9, 2011) (finding fee at effective hourly rate of $1,169.49 reasonable);

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Naddour v. Colvin, No.: 13-CV-1407-BAS, 2016 WL 4248557 (S.D. Cal. Aug. 11, 2016)

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(awarding fee at effective hourly rate of $1,063); Kazanjian v. Astrue, No. 09 civ. 3678 (BMC),

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This amount does not account for the 2.4 hours of paralegal time.
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2011 WL 2847439, at *1-2 (E.D.N.Y. July 15, 2011) (finding that counsel “performed well,

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diligently, and with unusual efficiency,” and awarding fee at hourly rate of $2,100).

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Counsel concedes that the $15,000 award should be offset in the amount of $2,750 for

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fees previously awarded under the Equal Access to Justice Act (“EAJA”). ECF No. 23 at 1; see

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ECF No. 22. Accordingly, counsel will be granted $12,250.00 pursuant to 42 U.S.C. § 406(b).

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See Gisbrecht v. Barnhart, 535 U.S. 789, 796 (2002) (holding that where attorney’s fees are

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awarded under both EAJA and § 406(b), the attorney must refund the smaller of the two awards

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to the plaintiff).

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Accordingly, it is hereby ORDERED that:

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1. Plaintiff’s counsel’s motion for attorney’s fees (ECF No. 23) is granted; and

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2. Plaintiff’s counsel is awarded $12,250 in fees pursuant to 42 U.S.C. § 406(b).

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DATED: April 10, 2020.

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