SUSAN COLLINS, Magistrate Judge.
Plaintiff Hope A. Waffle brought this suit to contest a denial of disability benefits by Defendant Commissioner of Social Security ("Commissioner"). (DE 1). On September 26, 2016, this Court entered an Opinion and Order that reversed the Commissioner's denial of benefits and remanded the case for further proceedings. (DE 29).
Waffle's attorney, Joseph Shull, now moves pursuant to 42 U.S.C. § 406(b) for the Court's authorization of attorney fees in the amount of $20,463.25 for his representation of Waffle in federal court. (DE 36). The Commissioner filed a response indicating that she does not oppose the motion (DE 41), and thus, the motion is ripe for ruling. For the following reasons, Shull's motion for attorney fees will be GRANTED, subject to an offset explained herein that will reduce his fee to $14,828.75.
On October 15, 2014, Shull entered into a contingent fee agreement with Waffle for his representation of her in federal court.
That same day, Waffle filed the instant action with this Court, appealing the Commissioner's denial of her application for disability benefits. (DE 1). On September 26, 2016, Waffle received a favorable judgment from this Court, and the case was remanded to the Commissioner for further proceedings. (DE 29; DE 30).
On December 16, 2016, Waffle filed a request for attorney fees under the Equal Access to Justice Act ("EAJA"), 28 U.S.C. § 2412, seeking payment for the 29.5 hours that Shull spent advocating her claim in federal court. (DE 31-DE 33). The Court granted Waffle an EAJA fee award of $5,634.50. (DE 34).
On October 20, 2017, the Commissioner sent a notice of award to Waffle, explaining that she was entitled to monthly disability benefits beginning March 2011 and past-due benefits in the amount of $105,853.00. (DE 37-1 at 1, 4). The notice further explained that the Commissioner had withheld 25 percent of Waffle's past-due benefits, that is, $26,463.25, to pay Waffle's attorney and that any remainder after doing so would be sent to Waffle. (DE 37-1 at 4).
On February 21, 2018, approximately four months after Hill received her notice of award, Shull filed the instant motion seeking fees under § 406(b). (DE 37).
Fees for representing Social Security claimants, both administratively and in federal court, are governed by 42 U.S.C. § 406. Gisbrecht, 535 U.S. at 793-94. Section 406(a) controls fees for representation in administrative proceedings, and § 406(b) controls attorney fees for representation in court. Id. Unlike fees obtained under the EAJA,
Under § 406(a), an attorney who has represented a claimant may file a fee petition or fee agreement with the Commissioner to receive fees for his or her representation at the administrative level. 42 U.S.C. § 406(a); Gisbrecht, 535 U.S. at 794-95; 20 C.F.R. §§ 404.1725(a), 416.1525(a). There are, however, limits on the amount that the Commissioner can award pursuant to § 406(a). Gisbrecht, 535 U.S. at 794-95.
Under § 406(b), an attorney who has successfully represented a claimant in federal court may receive "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 . . . ."
Unlike the award by the Commissioner under § 406(a), the court is required under § 406(b) to review for reasonableness the attorney fees yielded by contingent fee agreements. Id. at 809. The Supreme Court has explained:
Id. at 807-08 (citations and footnotes omitted).
The Court is charged with determining whether Shull's requested fee of $20,463.25 under the contingent fee agreement and § 406(b) is "a reasonable fee for such representation, not in excess of 25 percent of [Waffle's] total past-due benefits . . . ." 42 U.S.C. § 406(b)(1)(A). The notice of benefits from the Commissioner indicates that Waffle was awarded $105,853.00 in past-due benefits. (DE 37-1 at 4). Thus, the fee amount that Shull requests, $20,463.25, does not exceed 25 percent of Waffle's past-due benefits.
Shull contends that his requested fee award of $20,463.25 is reasonable for the 29.5 hours he spent representing Waffle in federal court. He emphasizes that: (1) he achieved a good result for Waffle; (2) he provided her with effective and efficient representation, which he attributes to his significant experience and knowledge in the area of Social Security disability law; (3) the requested fee reflects the contingent nature of the recovery; and (4) the requested fee is in alignment with the fees of other attorneys in the local market. (DE 37 at 6-10).
Shull did obtain a good result for Waffle and undoubtedly provided her with quality representation. See Gisbrecht, 535 U.S. at 808; Brown v. Barnhart, 270 F.Supp.2d 769, 772 (W.D. Va. 2003) (considering in a § 406(b) analysis that counsel had handled 900 or more Social Security cases and achieved a large measure of success for his client). This Court acknowledges Shull's numerous years of experience and significant knowledge in the area of Social Security disability law. (See DE 37-3 ¶ 6 (noting Shull's significant professional experience in the area of Social Security law)). Having said that, this case was not particularly complex, as Shull advanced four relatively-routine arguments on appeal.
The Court further notes that Shull requested and received three 28-day extensions during the briefing process due to his busy schedule.
Here, Shull's requested fee of $20,463.25 divided by the 29.5 hours he spent on the case in federal court equates to an effective rate of $693.67 per hour, an amount 2.3 times the noncontingent hourly rate of $300.
Ultimately, "if a claimant's success on appeal can be attributed to h[er] attorney's endeavors before the district court, then that attorney should reap the benefit of his work—even if he managed to accomplish a great deal in a small window of time." Jeter, 622 F.3d at 381. Shull has made a convincing case that the good result he achieved for Waffle was due to his substantial knowledge and experience in Social Security disability law and his effective and efficient representation, rather than due to "some other source for which it would be unreasonable to compensate the attorney." Id. (citing Gisbrecht, 535 U.S. at 808). The Seventh Circuit Court of Appeals has stated that it "do[es] not read Gisbrecht's `windfall' as support for the proposition that experienced, competent counsel should be punished for accomplishing an arduous task in a shorter span of time than less-experienced, less-aggressive counsel." Id. at 380-81.
Accordingly, Shull's requested fee award under § 406(b) will be authorized by this Court, but will incorporate an offset for the $5,634.50 in EAJA fees that Shull already recovered, reducing the fee award to $14,828.75. (DE 37 at 9 (acknowledging that his § 406(b) award is reduced by the EAJA award of $5,634.50)); see Gisbrecht, 535 U.S. at 796.
For the foregoing reasons, Shull's Motion for Authorization of Attorney Fees Pursuant to 42 U.S.C. § 406(b) (DE 37) is GRANTED, except that his requested fee of $20,463.25 is reduced to $14,828.75 to offset his prior award of EAJA fees in the amount of $5,634.50.
SO ORDERED.