R. STEVEN WHALEN, Magistrate Judge.
Plaintiff Cornell Elms filed this action under 42 U.S.C. §405(g), challenging a final decision of Defendant Commissioner denying his application for Disability Insurance Benefits ("DIB") and Supplemental Security Income ("SSI") under the Social Security Act. On September 18, 2017, the Court entered judgment in Plaintiff's favor, remanding the case for further administrative proceedings. Before the Court is Plaintiff's motion for attorney fees under the Equal Access to Justice Act ("EAJA"), 28 U.S.C. § 2412(d)(1)(A) [Doc. #31].
The Equal Access to Justice Act ("EAJA") is one of some 131 fee shifting statutes enacted by Congress. See Coulter v. State of Tennessee, 805 F.2d 146, 148 (6
The question of whether the position of the United States was "substantially justified" is answered with respect to not only the civil action, but to the administrative decision upon which the civil action is based:
In the context of a Social Security case brought under 42 U.S.C. § 405(g), a plaintiff such as Mr. Elms who wins a Sentence Four remand directing further administrative proceedings is a "prevailing party" within the meaning of the EAJA. Shalala v. Schaefer, 509 U.S. 292, 301-302 (1993). In addition, I find that the Commissioner's decision to deny benefits at the administrative level was not substantially justified. The Commissioner's argument that the basis for the remand was a mere "articulation error" is not correct. The Administrative Law Judge's erred in rejecting the opinion of Plaintiff's treating physician, Dr. Newman, and according "significant weight" to a one-time consultative source. The error was not just a matter of neglecting to articulate good reasons for that finding, but rather in substantively misstating and disregarding clinical evidence that supported Dr. Newman's opinion. The Court's Opinion read as follows:
The Court concluded with a clear statement that the AJL's finding that Dr. Newman's opinion was not supported by objective clinical evidence was erroneous, not that the ALJ simply failed to articulate his finding:
Given this error, I do not find that the Commissioner's position was substantially justified, either in the Court or in the administrative proceeding. Plaintiff is therefore entitled to EAJA fees.
Attorney's fees claimed under the EAJA must be reasonable. Glass v. Secretary of HHS, 822 F.2d 19, 21 (6
Plaintiff's counsel argues that he is entitled an increase in hourly rate from the statutory rate of $125 per hour, to $187.02 per hour for the year 2016 and $190.06 per hour for 2017. See 28 U.S.C. § 2412(d)(2)(A). In Bryant v. Commissioner of Soc. Sec. 578 F.3d 443, 450 (6
Plaintiff has submitted the following documentation in support of his fee request: (1) The affidavit of his attorney Ronald D. Glotta, describing counsel's 50 years of experience in handling Social Security cases, his educational background, including continuing legal education, his usual hourly rate of $300.00 to $350.00 per hour, an a itemization of time spent on this case; (2) EAJA rates approved by the 9
These submissions satisfy Plaintiff's burden of supporting an hourly rate over the statutory maximum, in the amounts requested. See See Pizzo v. Commissioner of Social Sec. 2014 WL 7157129, *5 (E.D.Mich. December 15, 2014)(affidavit, CPI, and Economics of Law Survey, considered in tandem, support request for $187.02 per hour); see also Cowart v. Commissioner of Soc. Sec., 795 Fed.Supp.2d 667, 671 (E.D. Mich. 2011)("Given the effect of inflation since 1996 . . . $173.00 per hour is a reasonable rate for work performed from November, 2008 to June, 2010"); Payne v. Commissioner of Soc. Sec., 2015 WL 5212048 (E.D. Mich. 2015)(approving hourly rates of $187.13 for 2013 and $189.75 for 2014).
The Commissioner is correct that an increase in the CPI, standing alone, is insufficient to support a request for an increase in the statutory cap. See Bryant, 578 F.3d at 450. The Commissioner is incorrect, however, that the statistics from the State Bar of Michigan are insufficient to show that the requested rates are in line with those prevailing in this community. First, the Commissioner errs in positing that the State Bar Report does not provide information regarding Social Security practice. Page 11 of the Report, Plaintiff's Exhibit 2, Pg. ID 808, lists the average hourly rates for "public benefits" practice, which would include Social Security. Attorneys within the 75
In addition, Bryant instructs that an attorney seeking EAJA fees must show that the requested rate is in line with those prevailing in the community for similar services, not identical services. The Report's average hourly rates for attorneys in the 75
Therefore, EAJA fees will be ordered at the rate of $187.02 per hour for the year 2016 and $190.06 per hour for 2017.
Plaintiff's counsel's time sheets itemize at total of 57.45 hours for federal court time.
That said, I do find that a few of the hours claimed do not appear reasonable. Plaintiff claims 3.50 hours for preparing the complaint with exhibits, including the ALJ's opinion. A complaint in a Social Security case is generally a fairly brief, simple document, and the relevant exhibits would generally be included in the administrative transcript. I will reduce this item by 2 hours.
Plaintiff requests a total of 2 hours for reviewing simple, one-page consent notices and orders and a scheduling order. I will reduce these claims by one hour.
The Plaintiff claims one hour for receipt and review of Defendant's motion for leave to file a sur-reply brief, which is fine. However, he then claims an additional hour for reviewing the two-sentence order granting that motion. I will reduce that claim by .75 hours.
In total, I will reduce the 2016 claim for 47 hours by two hours, at $187.02, for a reduction of $374.04. In addition, I will reduce the 2017 claim for 22 hours by 1.75 hours, at $190.06 per hour, for a reduction of $332.60. The award under EAJA is therefore as follows:
Under EAJA, a prevailing party is entitled to "a judgment for costs, as enumerated in section 1920 of this title, but not including the fees and expenses of attorneys...." 28 U.S.C. sc 2412(a)(1). See also 28 U.S.C. sc 2412(b) (allowing "reasonable fees and expenses" to a prevailing party).
Plaintiff is entitled only to those costs and expenses related to his federal court action, not to the administrative proceedings. Thus, and costs and expenses predating January, 2016 are not allowable. These included Healthport-DMC Outpatient Psychiatry ($42.62); Hanson Renaissance deposition fee ($175.00); Dr. Aggarwal ($25.00); and RIM records ($40.28).
A Social Security appeal under sec. 405(g) is based on the administrative record. Costs associated with production of records are therefore not reasonable in the context of this action. These include the requests for reimbursement of HFHS records ($34.19); MIPC records ($61.90); and Dr. Krugel records ($70.80).
This leaves the two requests for PACER expenses: $60.75 on 7/15/16, and $577.60 on 8/4/17. The latter expense was incurred seven months after the Court granted Defendant leave to file a sur-reply, and about six weeks before the Court entered its opinion and judgment. The Plaintiff does not set forth the basis of the August, 2017 PACER expense, and in the absence of any explanation, I cannot find that expense reasonable, as required by sc. 2412(b). I will, however, allow the July 15, 2016 PACER expense of
In the absence of an assignment of EAJA fees from the Plaintiff to his or her counsel, such fees are to be paid directly to the Plaintiff. Astrue v. Ratliff, 560 U.S. 586 (2010). In addition, EAJA fees are subject to offset for any pre-existing debt that the Plaintiff owes to the government. Id.; Cowart v. Commissioner of Soc. Sec., 795 Fed.Supp.2d 667, 671-72 (E.D. Mich. 2011). In his motion, Plaintiff does not allege that there was an assignment of EAJA fees, nor has a copy of any such assignment been submitted. Therefore, the EAJA fees awarded herein are to be paid directly to Plaintiff Cornell Elms, with an offset for any preexisting federal debt owed by the Plaintiff.
Fees and expenses under EAJA are awarded to Plaintiff Cornell Elms as follows:
The attorney fees will be paid directly to Plaintiff Cornell Elms. Within three weeks of the date of this Opinion and Order, the government will determine if Mr. Elms owes it any pre-existing debt. If he does, then the EAJA fees will be offset by the amount of that debt, with the remainder being paid directly to Mr. Elms. If he does not owe a pre-existing debt, the entire amount of the EAJA attorney fee award will be paid to Mr. Elms.
IT IS SO ORDERED.