PHILIP M. PRO, District Judge.
Presently before the Court is Plaintiff Cherylin F. Berman's ("Berman") Application for Award of Attorney's Fees Pursuant to 42 U.S.C. § 406(b) and to the Equal Access to Justice Act, 28 U.S.C. § 2412(d) (Doc. #20), filed on June 20, 2014.
The parties are familiar with the facts of this case, and the Court will not repeat them here except where necessary. Berman filed suit in this Court seeking review of the Commissioner's denial of Berman's request for Social Security disability insurance benefits based on chronic interstitial cystitis and other problems. (Compl. (Doc. #1).) Rather than answering the Complaint, the Commissioner moved to remand, arguing it was unclear whether the administrative law judge had considered certain evidence in the electronic claims file that had not been marked as exhibits. (Not. of Mot. & Mot. to Remand (Doc. #5).) Berman opposed the motion to remand, and subsequently objected to the Magistrate Judge's report and recommendation in which the Magistrate Judge recommended that the case be remanded. (Opp'n to Def.'s Mot. to Remand this Case Pursuant to Sentence Six of 42 U.S.C. § 405(g) (Doc. #6); Objection to Magistrate's Findings & Recommendations (Doc. #9).) The Court overruled Berman's objection and remanded the case to the Commissioner for a de novo hearing before the administrative law judge. (Order (Doc. #11).) On remand, the administrative law judge issued a decision in Berman's favor, and the Court subsequently entered Judgment in Berman's favor. (Order (Doc. #18) at 1; J. (Doc. #19).)
Berman now moves for attorney's fees under the Equal Access to Justice Act, 28 U.S.C. § 2412(d) ("EAJA"), and the Social Security Act, 42 U.S.C. § 406(b). Berman argues she is entitled to attorney's fees under the EAJA in the amount of $10,716.68, which represents the fee for 58.10 hours of attorney time. Berman further argues she is entitled to attorney's fees under § 406(b) in the amount of $12,405.48, which represents twenty-five percent of Berman's past-due benefits that she agreed to pay her attorney under a contingency fee agreement. The Commissioner does not dispute that Berman is entitled to attorney's fees under the EAJA, but opposes the amount requested, arguing that the $10,716.68 request for 58.10 hours of work is unreasonable and that Berman only has satisfied her burden of showing the reasonableness of $1,597.39 in EAJA fees for 7.6 hours. The Commissioner does not dispute that Berman is entitled to $12,405.48 in attorney's fees under § 406(b).
The EAJA provides for the award of "fees and other expenses" to a prevailing party in a "civil action" against the United States for review of an agency action, unless the Court finds "that the position of the United States was substantially justified or that special circumstances make an award unjust."
Section 406(b) provides that the Court may award reasonable attorney's fees, "not in excess of 25 percent of the total of the past-due benefits," when the Court renders a judgment in favor of a Social Security claimant. Unlike EAJA fee awards, which the government pays, fee awards under § 406(b) are paid directly out of the claimant's past-due benefits.
To determine a reasonable attorney's fee under the EAJA, the Court applies the "lodestar" method by multiplying the number of hours reasonably expended by a reasonable hourly rate.
Berman requests an hourly rate of $179.21 for hours her attorney worked in 2011, $182.91 for hours worked in 2012, $185.59 for hours worked in 2013, and $188.87 for hours worked in 2014. After accounting for inflation, these rates are within the adjusted statutory maximum hourly rate set forth in the EAJA. 28 U.S.C. § 2412(d)(2)(A)(ii) (providing that a higher fee than the statutory maximum of $125.00 per hour may be awarded if "the court determines that an increase in the cost of living . . . justifies a higher fee."); see also Appl. for Award of Attorney's Fees Pursuant to 42 U.S.C. § 406(b) and to the Equal Access to Justice Act, 28 U.S.C. § 2412(d) ["Appl. for Attorney's Fees"] (Doc. #20), Ex. 3 at 6 (setting forth Berman's attorney's hourly rates as adjusted for inflation). Moreover, the Commissioner does not object to the reasonableness of these rates. The Court therefore will set Berman's attorney's rates at these amounts.
Berman requests compensation for 58.10
The Commissioner responds by identifying four categories of hours for which the Commissioner contends Berman should not receive fees. First, the Commissioner objects to all of the fees incurred in 2011 because they are related to the presentation of Berman's case to the Social Security Administration before the Complaint was filed in this case. The Commissioner similarly objects to the portion of the fees incurred in 2012 that are not related to Berman's case before this Court. Second, the Commissioner objects to the fees Berman incurred in opposing the Commissioner's motion to remand and objecting to the Magistrate Judge's report and recommendation, arguing the hours are excessive, redundant, or unnecessary, and therefore are unreasonable under the EAJA. Third, the Commissioner objects to various time entries in which redaction makes the entries' relation to the case unclear. Finally, the Commissioner objects to various time entries following the parties' stipulation to reopen and enter judgment on the grounds it is unclear how these hours are related to this case.
A reasonable number of hours expended means the number of hours an attorney reasonably could have billed to a private client.
The Commissioner argues the 8.70 hours
The EAJA generally does not provide for the award of attorney's fees for administrative proceedings.
Here, the time entries from April 28, 2011, May 1, 2011, May 2, 2011, and May 7, 2011, are related to work performed before the Social Security Administration. Specifically, the entries for these dates document that Berman's counsel reviewed the administrative law judge's decision, conducted research regarding interstitial cystitis and Social Security rulings bearing on the disease, and drafted a brief to the Social Security Administration's Appeals Council.
As for the remaining 2011 entries dated May 10, 2011, August 31, 2011, September 17, 2011, and October 15, 2011, the redactions to these entries prevent the Court from determining whether the work performed was related to the administrative proceedings or was work performed in preparation of filing the Complaint in this case, which was filed in 2012. Berman does not dispute that the hours incurred in 2011 were for pre-litigation work performed before the Social Security Administration, nor does Berman provide unredacted copies of the billing entries that would allow the Court to determine whether the redacted entries were related to the administrative proceedings. Further, because these fees were incurred before remand, they do not fall within the narrow class of fees for administrative proceedings for which EAJA compensation may be available. The Court therefore will deduct the remaining 1.30 hours incurred in 2011, for a total reduction of 8.70 hours.
Regarding the hours incurred in 2012, the redactions to the entries dated September 10, 2012, and September 13, 2012, prevent the Court from determining whether the work performed was related to the administrative proceedings or was related to this case. As for the block billed entry dated November 17, 2012, the portion regarding correspondence to Berman does not contain sufficient detail for the Court to determine whether the correspondence was related to this case. The other portion of the block billed entry stating "[l]etter to SSA" appears to be related to the administrative proceedings, and Berman does not provide evidence indicating otherwise. The Court therefore will deduct 2.00 hours for the entries dated September 10, 2012, September 13, 2012, and November 17, 2012.
The Court will award 2.20 hours incurred on September 8, 2012, for preparation of the Complaint as these hours are related to the civil action, not the administrative proceedings. The Court similarly will award a total of 0.70 hours incurred on January 25, 2013, January 28, 2013, and March 18, 2013, related to the filing and service of the Complaint. The Commissioner does not object to these hours. (Opp'n at 4.)
Finally, the Court will award 2.60 hours incurred on August 9, 2013, August 19, 2013, October 16, 2013, October 18, 2013, and October 25, 2013. These hours were incurred on remand to the Social Security Administration, during which time this Court retained jurisdiction, and therefore fall within the class of fees for administrative proceedings for which EAJA compensation is available. (Order (Doc. #11) (remanding the case pursuant to sentence six of 42 U.S.C. § 405(g)).) The Commissioner does not object to these hours.
The Commissioner objects to all but 1.20 of the hours Berman incurred in opposing the Commissioner's motion to remand and in objecting to the Magistrate Judge's report and recommendation, arguing the fees are excessive, redundant, and unnecessary. The Commissioner argues that because she sought remand before answering, Berman was not required to prepare a merits brief in this case. The Commissioner further argues that Berman applied the incorrect legal standard in her opposition and objection. The Commissioner asserts that Berman's arguments lacked factual support and were irrelevant to the basis for the Commissioner's request to remand. The Commissioner also asserts that Berman failed to articulate a theory that would have compelled the Court to award benefits to Berman. Finally, the Commissioner argues Berman could have avoided these fees by stipulating to remand.
Berman replies that the Commissioner did not have good cause to remand because few decisions by administrative law judges specifically address all of the evidence in an exhibit file, and the missing evidence in this case was not necessarily outcome determinative. Berman also argues that given the delay that would be occasioned to the case by a remand, that few cases receive favorable decisions on remand, that she had a chance of obtaining benefits from the Court without another round of administrative proceedings, it was not unreasonable for her to oppose the motion to remand or to object to the report and recommendation. Finally, Berman argues that if she had failed to object to the Magistrate Judge's report and recommendation, she would have lost the right to appeal.
Given that Berman did not file a merits brief in this case before the Commissioner moved to remand, the Court cannot evaluate whether Berman's expectation of a judicial award of benefits was reasonable. Regardless, if Berman successfully had opposed the Commissioner's motion to remand and had prevailed in this case, it is possible Berman could have obtained a judicial award of benefits from this Court without another round of administrative proceedings and the attendant delay.
The Commissioner argues Berman should not be permitted to recover attorney's fees for various billing entries that have been partially redacted on the grounds that the redactions make the entries' relation to this case unclear. Berman does not reply to the Commissioner's arguments regarding the redactions or provide the Court with unredacted billing entries. The redacted time entries, which mostly consist of entries for conversations between Berman and her attorney, prevent the Court from determining the reasonableness of the work performed. Berman's failure to provide even a general description of the subject matter renders it impossible to assess the reasonableness of these time entries. The Court therefore will deny the portions of the fee application that relate to redacted entries.
The Commissioner objects to various time entries recorded after counsel for the parties spoke on October 25, 2013, regarding a proposed stipulation to reopen this case and enter judgment. According to the Commissioner, because these hours were incurred after the parties agreed to reopen this case and enter judgment, these hours are not sufficiently related to the case to be reasonable and are not recoverable under the EAJA. Berman does not specifically respond to the Commissioner's arguments regarding the post-stipulation hours, however, she argues that fees for representation before an administrative agency on remand are compensable under the EAJA if the Court retains jurisdiction.
Although the billing records indicate a stipulation to reopen the case and to enter judgment was discussed by counsel on October 25, 2013, the docket in this case indicates that on October 25, 2013, the parties filed a stipulation for additional time to complete the de novo hearing before the administrative law judge. (Stipulation for Additional Time to Complete Administrate Law Judge Hearing (Doc. #13).) The stipulation to reopen the case and to enter judgment was not filed until nearly five months later, on March 21, 2014. (Stipulation to Reopen Case for Purpose of Entering J. for Pl. (Doc. #17).) Thus, the hours incurred between October 27, 2013, and March 21, 2014, are hours for work done at the administrative level following remand by the district court, and therefore are compensable under the EAJA.
As for the hours incurred after the March 21, 2014 stipulation, the Commissioner does not object to 1.00 of those hours, which were incurred on March 24, 2014, April 28, 2014, May 13, 2014, and May 28, 2014. The Court therefore will award 1.00 hours for those dates. As for the 0.50 hours incurred on April 4, 2014, and May 7, 2014, the Commissioner objects to the hours, and Berman does not provide any argument or evidence indicating that the hours are reasonable. The Court therefore will deduct 0.50 hours for the entries dated April 4, 2014, and May 7, 2014.
This is not the rare case where any of the
Berman moves for $12,405.48 in attorney's fees pursuant to 42 U.S.C. § 406(b), arguing the Court should approve the fees because they represent the statutory maximum of twenty-five percent of her past-due benefits. Berman entered into a contingency fee agreement with her attorney specifying that the fee for the representation would be twentyfive percent of any past-due benefits recovered. (Appl. for Attorney's Fees, Ex. 1.) The Social Security Administration withheld $12,405.48 for payment of attorney's fees, which is twenty-five percent of Berman's past-due benefits. (Appl. for Attorney's Fees, Ex. 2 at 3, Ex. 4 at ¶ 3.) The Commissioner does not oppose Berman's request for § 406(b) fees.
In Social Security cases, contingency fee agreements not exceeding twenty-five percent of the claimant's past-due benefits are enforceable under § 406(b), subject to the Court's review "to assure that they yield reasonable results in particular cases."
Here, the fees Berman requests are reasonable. Berman submits the signed contingency fee agreement, as well as a declaration in which she acknowledges she understands and agrees to the twenty-five percent contingency fee. (Appl. for Attorney's Fees, Ex. 1, Ex. 4.) The requested fee is within the twenty-five percent boundary set by § 406(b). Further, no reduction in fees due to substandard performance is warranted. Although Berman's counsel was unsuccessful in opposing remand, Berman ultimately prevailed on remand and was awarded past-due benefits. Berman's attorney did not cause any unnecessary delay resulting in an accumulation of back benefits. In fact, Berman's attorney opposed the Commissioner's motion to remand partly because of the delay it would occasion to the case. Finally, the requested fees are not excessively large in relation to the benefits achieved. As a result of Berman's attorney's efforts, Berman received an award of benefits. The requested fees represent a rate of $391.34 per hour, which is only slightly higher than Berman's attorney's customary hourly rate of $350.00, and is reasonable taking into account the risk Berman's attorney assumed in accepting Berman's case, including the risk that no benefits would be awarded or that there would be significant delays in resolving the case. Thus, the fees do not represent a windfall to Berman's attorney. The Court therefore will award $12,405.48 in attorney's fees to Berman pursuant to § 406(b).
Berman requests $350.00 in costs for her filing fee with the Court. The Commissioner does not object to the requested costs. The Court therefore will award Berman $350.00 in costs.
IT IS THEREFORE ORDERED that Plaintiff Cherylin F. Berman's Application for Award of Attorney's Fees Pursuant to 42 U.S.C. § 406(b) and to the Equal Access to Justice Act, 28 U.S.C. § 2412(d) (Doc. #20) is hereby GRANTED in part and DENIED in part as set forth more fully in this Order.
IT IS FURTHER ORDERED that the parties shall prepare and file within fifteen (15) days from the date of this Order a joint proposed form of order consistent with the Court's instructions regarding which fees appropriately are included within the award.
IT IS FURTHER ORDERED that the Clerk of Court shall seal Plaintiff Cherylin F. Berman's Application for Award of Attorney's Fees Pursuant to 42 U.S.C. § 406(b) and to the Equal Access to Justice Act, 28 U.S.C. § 2412(d) (Doc. #20) in its entirety. Plaintiff Cherylin F. Berman's counsel shall re-file the entire Application, including all exhibits, with appropriate redactions to all exhibits, for the public record in accordance with Special Order No. 108 within fifteen (15) days from the date of this Order.
IT IS FURTHER ORDERED that the Clerk of Court shall unseal all other documents in the case.
IT IS FURTHER ORDERED that the Clerk of Court shall substitute Carolyn W. Colvin, Acting Commissioner of Social Security, for Michael J. Astrue as the Defendant in this case.