Beckett v. Commissioner of Social Security Administration

Filing 40

MEMORANDUM OPINION AND ORDER -- The Court GRANTS Plaintiff's Motion for Attorney Fees Under 42 U.S.C. § 406(b), ECF No. 38 . See Order as more fully set out. Signed by Magistrate Judge Shon T. Erwin on 10/29.19. (mc)

IN THE UNITED STATES DISTRICT COURT FOR THE
WESTERN DISTRICT OF OKLAHOMA
MARCY ELLEN BECKETT,
Plaintiff,
v.
COMMISSIONER OF THE SOCIAL
SECURITY ADMINISTRATION,
Defendant.

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Case No. CIV-17-514-STE

MEMORANDUM OPINION AND ORDER
This matter is before the Court on Plaintiff’s Motion for Attorney Fees Under 42
U.S.C. § 406(b), seeking an award in the amount of $14,339.63. (ECF No. 38). The
Commissioner has responded to the § 406(b) motion. The Commissioner takes no position
on this request, but rather he defers to the Court’s sound discretion as to the
reasonableness of the requested fee award. See ECF No. 39.
I.

PROCEDURAL BACKGROUND
Plaintiff Marcy Ellen Beckett retained Troutman and Troutman, PC., to appeal the

SSA denial of her application for disability insurance benefits. (ECF No. 38-1). The contract
between Ms. Beckett and Troutman and Troutman, PC., provided for payment of an
attorney fee contingent upon Ms. Beckett prevailing before the federal court and
ultimately being awarded benefits by the SSA. Under the contract, Ms. Beckett agreed to
an attorney fee in the amount of twenty-five percent (25%) of any past-due benefits
awarded. See id.

Plaintiff prevailed in federal court. In an Order and Judgment dated April 24, 2018,
the Court reversed the decision of the SSA and remanded the case for further
administrative findings. (ECF Nos. 30 & 31). On remand, Plaintiff was awarded past-due
benefits from which the SSA withheld $14,339.63, representing twenty-five percent
(25%) of the total past due benefit. (ECF No. 38-2:3). Pursuant to 42 U.S.C. § 406(b),
and citing the contractual agreement between the parties and Gisbrecht v. Barnhart,
Plaintiff requests a fee award in the amount of $14,339.63. (ECF No. 38).
II.

FEES FOR REPRESENTATION
Congress has prescribed specific limitations on the amount of fees which may be

awarded for representation of Social Security claims. See 42 U.S.C. § 406. Section 406
“deals with the administrative and judicial review stages discretely: § 406(a) governs fees
for representation in administrative proceedings; § 406(b) controls fees for representation
in court.” Gisbrecht v. Barnhart, 535 U.S. 789, 794 (2002). Subsection 406(b) provides:
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. . .
42 U.S.C. § 406(b)(1)(A). Any such payment must be made “out of, and not in addition
to,” the past-due benefits owed to the claimant. Id. This subsection “does not displace
contingent-fee agreements as the primary means by which fees are set for successfully
representing Social Security benefits claimants in court” so long as the agreed-upon
amount stays within the statute’s “25 percent boundary.” Gisbrecht v. Barnhart, 535 U.S.

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at 789. For a fee request that lies within this boundary, “the attorney for the successful
claimant” still “must show that the fee sought is reasonable for the services rendered.”

Id. If attorney fees are also awarded under EAJA, Plaintiff’s counsel is to refund the
smaller amount to Plaintiff. Weakley v. Bowen, 803 F.2d 575 (10th Cir. 1986).
III.

AWARD OF § 406(b) FEES
Troutman and Troutman, PC. has requested § 406(b) fees in the amount of

$14,339.63 and has attached a detailed billing summary reflecting a total of 37.50 hours
(4.2 paralegal/intern hours and 33.3 attorney hours) with a total hourly fee of $7.064.10.

See ECF No. 38-4. Even though the amount requested is more than the hourly fee
reflected in the invoice, the amount requested does not exceed twenty-five percent
(25%) which would equal $14,339.63 of the total awarded past-due benefits, and is,
therefore, in line with both the contractual agreement and § 406(b). The Court has
reviewed the file and finds this amount to be reasonable.
IV.

PLAINTIFF’S AWARD OF ATTORNEY FEES UNDER THE EQUAL ACCESS TO
JUSTICE ACT (EAJA)
On August 21, 2018, Plaintiff was awarded EAJA attorney fees in the amount of

$7,064.10 as the prevailing party. See ECF No. 34. Plaintiff’s attorney therefore must
refund the lesser of the two fees to Plaintiff. See Weakley v. Bowen, 803 F.3d 575, 580
(10th Cir. 1986).
ORDER
The Court GRANTS Plaintiff’s Motion for Attorney Fees Under 42 U.S.C. § 406(b),
(ECF No. 38). Plaintiff’s attorneys, Troutman and Troutman, are awarded attorney’s fees

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in the amount of $14,339.63, to be paid out of the past-due benefits Plaintiff received
by reason of the remand and favorable decision in this case. See 42 U.S.C. § 406(b)(1)(A).
Plaintiff’s attorney shall refund the attorney fees awarded under the EAJA (ECF No. 34).

See Weakley v. Bowen, 803 F.3d 575, 580 (10th Cir. 1986).
The SSA shall pay this amount directly to Troutman & Troutman, P.C., 1350 S.
Boulder, Suite 410, Tulsa, OK 74119.
ENTERED on October 29, 2019.

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