SONJA F. BIVINS, Magistrate Judge.
This action is before the undersigned Magistrate Judge on Petitioner William T. Coplin, Jr., Esq.'s Motion for Attorney's Fees in connection with his representation of Plaintiff, Patricia Vaughn, who brought an action before this Court seeking disability insurance benefits and supplemental security income, under Titles II and XVI of the Social Security Act, 42 U.S.C. §§ 401 et seq., and 1381, et seq. (Doc. 28). This action was referred to the undersigned Magistrate Judge for report and recommendation pursuant to 28 U.S.C. § 636(b)(1)(B) and Local Rule 72.2(c)(3). Upon consideration of the motion, the Commissioner's lack of opposition thereto (Doc. 30), and all other pertinent portions of the record, it is the recommendation of the undersigned that Petitioner's motion be
Petitioner, William T. Coplin, Jr., Esq. was hired by Plaintiff to represent her in connection with her claim for a period of disability, disability insurance benefits, and supplemental security income on August 18, 2008. (Doc. 28-1, "Attorney Fee Agreement"). The Attorney Fee Agreement entered into by Plaintiff and her counsel in August 2008 provides, in pertinent part, that if Plaintiff receives a favorable decision from the Social Security Administration after the decision of a federal court, Plaintiff will pay her attorney a fee equal to 25% of all past-due benefits. (
On October 26, 2012, this Court granted the Commissioner's unopposed motion to remand pursuant to sentence four of 42 U.S.C. § 405(g) for further administrative proceedings to allow the Administrative Law Judge the opportunity to further evaluate Plaintiff's mental impairments and residual functional capacity. (Docs. 19, 20, 21). Thereafter, on January 30, 2013, the Court granted Plaintiff's motion for attorney's fees under the Equal Access to Justice Act ("EAJA"), 28 U.S.C. § 2412(d) in the sum of $1,241.88. (Docs. 25, 26, 27).
On May 22, 2015, following remand, an Administrative Law Judge rendered a fully favorable decision, finding that Plaintiff is disabled and that she was entitled to benefits commencing May 2007. (Docs. 28-2, 28-3). Pursuant to Section 206 of the Social Security Act, codified at 42 U.S.C. § 406, the Administration withheld 25% of Plaintiff's past-due benefits in order to pay for approved attorney's fees. (Doc. 28-3). According to Petitioner, he petitioned the Social Security Administration for a fee (for representation of Plaintiff before the Administration) and received $6,000. (Doc. 28 at 1). In addition, he received EAJA fees in the amount of $1,241.88. (
In the present petition, Petitioner seeks to have the remainder of the 25% of Plaintiff's past-due benefits, $3,744.10, be awarded as an additional attorney's fee under § 406(b). (Doc. 28 at 1). Petitioner asserts that this request is consistent with the contingency agreement that Plaintiff executed upon retaining Petitioner and that, once he reimburses Plaintiff the amount of attorney's fees previously awarded by the Court under the EAJA ($1,241.88), the attorney's fees received will not exceed the allowable 25% of past-due benefits awarded to Plaintiff.
In response to Petitioner's request, the Commissioner states that she does not object to the requested fee but agrees that an attorney who has received attorney's fees under both §406 and EAJA must refund the lesser amount to his client. (Doc. 30 at 1).
There are three statutory provisions under which attorneys representing claimants in Social Security Disability cases may be compensated: 42 U.S.C. §§ 406(a) and 406(b) and 28 U.S.C. § 2412(d). Section 406(a) provides the exclusive avenue for attorneys seeking fees for work done before the Commissioner at the administrative level. The fees awarded under Section 406(a) are paid out of the claimant's past-due benefits awarded and are capped at twenty-five percent of past-due benefits awarded or a lesser fixed amount. 42 U.S.C. § 406(a)(2)(A) and (B).
For fees incurred representing claimants in federal court, claimants and their attorneys may seek fees under two statutory provisions, 42 U.S.C. § 406(b) and 28 U.S.C. § 2412(d). Under Section 406(b), upon entry of judgment in favor of a claimant, the Court may award a reasonable fee for work performed before the Court, which are paid out of the claimant's past-due benefits awarded. 42 U.S.C. § 406(b)(1)(A). Section 406(b) imposes a cap on the total amount of fees that may be awarded, providing that a Court may not award fees "in excess of 25 percent of the total of the past-due benefits to which the claimant is entitled." 42 U.S.C. § 406(b)(1)(A).
Section 406(b) thus "provides for contingent fees to be charged
The Supreme Court has held that "§ 406(b) does not displace contingent-fee agreements within the statutory ceiling; instead, § 406(b) instructs courts to review for reasonableness fees yielded by those agreements."
In line with
By contrast, the EAJA permits a claimant to seek an award of fees against the government for work that is done before the Court if the claimant prevailed and the position of the Commissioner is not substantially justified. 28 U.S.C. § 2412(d)(1)(A). The EAJA contains a Savings Provision that provides that "where the claimant's attorney receives fees for the same work under both [406(b) and the EAJA], the claimant's attorney refunds to the claimant the amount of the smaller fee."
This Circuit has held that "the aggregate of the attorney's fees awarded under § 406(a) and § 406(b) may not exceed 25% of the claimant's past due benefits."
As previously stated, based on the information provided to Plaintiff by the Social Security Administration (Doc. 28-3), 25% of Plaintiff's past-due benefits is $10,985.98 (making the total amount of past due benefits $43,943.92). (Doc. 28 at 1; Doc. 28-3). The contingency agreement, which Plaintiff entered into on August 18, 2008 (Doc. 28-1, "Attorney Fee Agreement"), contemplates attorney's fees of as much as 25% of the claimant's past-due benefits following a favorable decision after a federal court remand. (
Based on the foregoing, it is the recommendation of the undersigned that Petitioner's motion be
A copy of this report and recommendation shall be served on all parties in the manner provided by law. Any party who objects to this recommendation or anything in it must, within fourteen (14) days of the date of service of this document, file specific written objections with the Clerk of this Court.