Cromwell v. Commissioner of the Social Security Administration
Filing
31
ORDER: It is ORDERED that Plaintiff, Margaret McFadden Cromwell, upon approval of the Joint Stipulation, is awarded attorney fees under the EAJA in the amount of $5,000.00. Signed by Honorable Bruce Howe Hendricks on 2/14/2017. (gnan )
UNITED STATES DISTRICT COURT
DISTRICT OF SOUTH CAROLINA
Margaret McFadden Cromwell,
) Civil Action No. 4:15-4117-BHH
Plaintiff, )
v.
)
ORDER
NANCY A. BERRYHILL,1
Acting Commissioner of Social Security,
)
)
Defendant.
___________________________________ )
Upon consideration of the joint Stipulation for attorney’s fees pursuant to the
Equal Access to Justice Act (EAJA) 28 U.S.C. §2412(d) (ECF No. 29), it is hereby,
ORDERED that Plaintiff, Margaret McFadden Cromwell, is awarded attorney fees
under the EAJA in the amount $5.000.00 in attorney fees. The attorney fees will be paid
directly to Plaintiff, Margaret McFadden Cromwell, and sent to the business address of
Plaintiff’s counsel. Full or partial remittance of the awarded attorney fees will be
contingent upon a determination by the Government that Plaintiff owes no qualifying,
pre-existing debt(s) to the Government. If such a debt(s) exists, the Government will
reduce the awarded attorney fees in this Order to the extent necessary to satisfy such
debt(s).1
1
Counsel has submitted an assignment, by Plaintiff, of the fees in this case (ECF No. 28-1) and,
therefore, requests any award be made payable to him. In Astrue v. Ratliff, 560 U.S. 586, 598 (2010), the
United States Supreme Court held that the EAJA requires attorneys’ fees to be awarded directly to the litigant.
Id. (holding that the plain text of the EAJA requires that attorneys’ fees be awarded to the litigant, thus
subjecting EAJA fees to offset of any pre-existing federal debts); see also Stephens v. Astrue, 565 F.3d 131,
139 (4th Cir. 2009) (same). Neither Ratliff nor Stephens addresses whether claimants may assign EAJA fees
to their attorneys via contract. This district, however, has fairly consistently found such assignments ineffective
to require the Court to make payment directly to counsel. See Williams v. Astrue, No. 2012 WL 6615130, at
*4 (D.S.C. Dec. 19, 2012); Phillips v. Astrue, 2011 WL 5041751, at *1 (D.S.C. Oct. 21, 2011); Tate v. Astrue,
2010 WL 4860356, at *2 (D.S.C. Nov. 23, 2010); Washington v. Astrue, 2010 WL 3023028, at *5 (D.S.C. July
29, 2010) (holding that EAJA fees are payable to plaintiff even where plaintiff has attached an affidavit
assigning his rights in the fees award to counsel). At least one circuit court of appeals has additionally
IT IS SO ORDERED.
/s/Bruce Howe Hendricks
United States District Judge
February 14, 2017
Greenville, South Carolina
1.
Nancy A. Berryhill is now the Acting Commissioner of Social Security. Pursuant to Rule 43(c)(2) of
the Federal Rules of Appellate Procedure, Nancy A. Berryhill should be substituted for Acting Commissioner
Carolyn W. Colvin as the defendant-appellee in this appeal. No further action needs to be taken to continue
this appeal by reason of the last sentence of section 205(g) of the Social Security Act, 42 U.S.C. § 405(g).
expressed concern that such contracts would constitute an “endrun” around the plain text of the EAJA, as
interpreted in Ratliff. See Brown v. Astrue, 271 Fed. App’x 741, 743 (10th Cir. 2008) (stating, in dicta, that
claimant’s “assignment of his right in the fees award to counsel does not overcome the clear EAJA mandate
that the award is to him as the prevailing party . . . .”). The undersigned has on some previous occasion
ordered payment to counsel but only where the United States has accepted the assignment as valid; the
government’s practice in this regard has not been uniform. Here, the parties filed a joint Stipulation (ECF No.
29) in which Defendant conditioned its acceptance of the assignment upon Plaintiff having no outstanding
federal debt.
Because Defendant has not accepted the assignment as valid without conditions, and in keeping
with the prudent decisions of this District, the Court declines to treat such an assignment as altering the
Court’s obligation, in payment, to Plaintiff directly. As the Court in Ratliff emphasized, the EAJA controls
what the losing defendant must pay, “not what the prevailing plaintiff must pay his lawyer.” Ratliff, 560 U.S.
at 598.
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