JOHN H. RICH, III, Magistrate Judge.
In this district, the Commissioner of Social Security and many plaintiffs "have been at loggerheads over the appropriate paralegal rate . . . for some time." Defendant's Opposition to Plaintiff's EAJA [Equal Access to Justice Act] Application for Fees and Expenses ("Opposition") (ECF No. 18) at 1-2 n.1. To resolve the impasse, the court convened an evidentiary hearing on November 19, 2018, in this case and two others, Traci H. v. Berryhill, No. 1:16-cv-00568-JAW (D. Me.), and Buck S. v. Berryhill, No. 2:17-cv-00465-JDL (D. Me.), to address whether the time has come for an upward adjustment in the hourly rate of $90 that this court has awarded in recent years in EAJA fees for paralegal work in Social Security disability appeal cases.
The plaintiff seeks a fee award pursuant to the EAJA, 28 U.S.C. § 2412(d), of $3,113.72 for 8.8 hours of attorney time and 12.5 hours of paralegal time expended in connection with this Social Security benefits appeal. See Application for EAJA Fees ("Motion") (ECF No. 16) & [Fee Invoice], Exh. A (ECF No. 16-1) thereto, at [2]. The commissioner's sole objection is to the hourly rates of $110 sought for 12 hours of work by the plaintiff's attorney's experienced paralegals and $100 sought for a half-hour of work by a relatively new, non-specialized paralegal. See Motion at [4] & n.2; Opposition at 3-6.
For the reasons that follow, I conclude that the plaintiff has shown that an increase to $105, rather than the $110 requested, is warranted in the hourly rate of experienced paralegals assisting in Social Security disability appeal cases in this district. Hence, I recommend that the court grant the Motion in part and award EAJA fees totaling $3,051.22, consisting of $1,743.72 for 8.8 hours of attorney time at $198.15 per hour, $1,260 for 12 hours of the time of experienced paralegals at $105 per hour, and $47.50 for a half hour of the time of an inexperienced paralegal at $95 per hour.
The plaintiff presented two witnesses, Portland, Maine, attorney Robert Edmond Mittel, Esq., the senior member of MittelAsen, LLC, and her own attorney, Francis M. Jackson, Esq., a founding partner of Jackson & MacNichol, and offered 11 exhibits, which were admitted without objection, as well as two demonstrative aids. Those exhibits consist of (i) a declaration and supplemental declaration of Attorney Mittel, see Plaintiff's Exhs. 5-6, (ii) two Bureau of Labor Statistics ("BLS") price index measures, see Plaintiff's Exhs. 10-11, (iii) excerpts from two paralegal billing surveys, see Plaintiff's Exhs. 3-4, (iv) records from two Social Security EAJA fee cases decided in this court and a copy of a decision in a third, see Plaintiff's Exhs. 7-9, and (v) affidavits of local attorneys Andrea Bopp Stark, Esq., and John H. Montgomery, Esq., filed in this court in support of fee awards in non-Social Security cases, including awards for paralegal work, see Plaintiff's Exhs. 1-2.
The commissioner presented no witnesses and offered three exhibits, which were admitted without objection, as well as one demonstrative aid. Those exhibits are (i) an affidavit of Rami M. Vanegas, Assistant Regional Counsel for the Social Security Administration, Office of the General Counsel ("OCG") — Region One, see Defendant's Exh. 1 and (ii) two decisions of the United States District Court, District of Massachusetts, in which the plaintiff's attorney's law firm requested, and was awarded, EAJA paralegal fees in Social Security cases at an hourly rate of $90, see Defendant's Exhs. 2-3.
At the close of the hearing, I heard oral argument.
The EAJA provides, in relevant part:
28 U.S.C. § 2412(d)(1)(A). The EAJA allows fee reimbursement to a prevailing party for "reasonable fees and expenses of attorneys[.]" Id. § 2412(b). In turn, the "amount of [attorney] fees awarded under this subsection [2412(d)] shall be based upon prevailing market rates for the kind and quality of the services furnished," subject to a statutory cap of $125 per hour, "unless the court determines that an increase in the cost of living or a special factor . . . justifies a higher fee." Id. § 2412(d)(2)(A).
This court has adopted, as the measure of whether cost of living adjustments above the $125 cap are warranted, the BLS Consumer Price Index — All Urban Consumers, Not Seasonally Adjusted, U.S. city average, All items ("CPI-U-ALL"). Quint v. Barnhart, Civil No. 05-135-B-W, 2006 WL 1495004, at *1, 3 (D. Me. May 25, 2006) (rec. dec., aff'd June 13, 2006).
The Supreme Court has construed the phrase "reasonable fees . . . of attorneys" to encompass paralegal fees, holding that "a prevailing party that satisfies EAJA's other requirements may recover its paralegal fees from the Government at prevailing market rates." Richlin Sec. Serv. Co. v. Chertoff, 553 U.S. 571, 590 (2008).
"The plaintiffs bear the burden of establishing the reasonableness of the rates and hours submitted in their application for fees." Mason v. Me. Dep't of Corr., 387 F.Supp.2d 57, 60 (D. Me. 2005).
At hearing, the parties agreed that the appropriate market for purposes of determining the prevailing market rate pursuant to Richlin is the District of Maine. The commissioner conceded, as she had in two teleconferences with counsel held in preparation for the hearing, that some upward adjustment is warranted. She proposed that it be calculated by the percentage increase in the CPI-U-ALL since the court's award of paralegal fees at a $90 rate in Knudsen v. Colvin, No. 2:14-cv-155-JHR, 2015 WL 5628784 (D. Me. July 31, 2015). By her calculations, this would result in an hourly rate of $96 to $97.
The plaintiff advocated for the use of either or both of two other BLS indices that she contended yield more targeted and accurate results: the Producer Price Index industry group data for Legal services, not seasonally adjusted ("PPI/Legal"), which does not break data down for regions or states, see Plaintiff's Exh. 10, and/or a CPI index measuring Other personal services in Northeast urban, all urban consumers, not seasonally adjusted ("CPI-U/Northeast Services"), see Plaintiff's Exh. 11. She argued that the increase should be calculated for the period since July 2013, when Social Security paralegal services first were performed for which this court awarded fees at a $90 hourly rate. See Plaintiff's Exh. 7 ([Fee Invoice] ("Baker Invoice"), Exh. A to EAJA Application for Fees and Expenses, Baker v. Colvin, No. 1:13-cv-00134-DBH (D. Me.)).
Finally, the plaintiff contended that these indices should be used only to establish a "floor" for market-rate paralegal fees. She asserted that she had demonstrated that the market rate for experienced, specialized paralegals in this district is at least $110 an hour, as a result of which her request for an EAJA paralegal fee award at that hourly rate for the services of her experienced paralegals should be approved.
With the benefit of the evidentiary hearing and oral argument held on November 19, 2018, I recommend that the court find that the market rate for experienced paralegals assisting in Social Security disability appeal cases in this district has risen to $105 per hour, as evidenced primarily by certain testimony of Attorney Mittel and the application of the PPI/Legal index.
I give great weight to the testimony and declaration of Attorney Mittel that, among lawyers engaged in work in this court that is somewhat comparable to that performed by Attorney Jackson and his paralegal — for example, the defense of ERISA-based disability claims and the defense of medical malpractice claims — paralegal rates exceed $100 per hour, except in some cases in which an insurance carrier is paying, qualifying the carriers (who Mittel testified pay legal bills promptly) for a discount. See Plaintiff's Exh. 6 (Supplemental Declaration of Robert Edmond Mittel ("Suppl. Mittel Decl.")) ¶ 8.
Attorney Mittel also testified, as did Attorney Jackson, that $110 per hour is a reasonable, appropriate rate for the work of Attorney Jackson's paralegal Bradley Enna and, in fact, probably lower than current market rates for some specialized paralegals assisting in civil litigation in this community, particularly those involved in intellectual property litigation. See also Suppl. Mittel Decl. ¶ 3. However, this testimony rests on footings that are simultaneously too narrow and too broad, falling short of establishing that $110 is the market rate for experienced Social Security paralegals in this district.
First, it pertains solely to the work of paralegal Enna, who received a Juris Doctorate from the University of Pennsylvania Law School and practiced law at the law firm of Skadden, Arps, Slate, Meagher & Flom LLP before suffering a closed head injury. Second, it relies on comparison between the services of Enna and those of specialized paralegals in civil litigation in this community generally, including those involved in intellectual property litigation. Yet, this court has declined to assume that the market rate for the work of Social Security paralegals is equivalent to that of other specialized, experienced paralegals, see, e.g., Pearson v. Astrue, Civil No. 1:11-CV-252-DBH, 2012 WL 837243, at *1 (D. Me. Mar. 12, 2012) (court was "not prepared to say, without evidence, that the market rate for paralegal services in social security cases is equivalent to that for copyright, trademark and patent infringement cases"), and the plaintiff offered no evidence at hearing that specialized paralegals as a group are fair comparators. To the contrary, the testimony of Attorney Mittel, as a whole, fairly can be construed to indicate that, while the market rate for paralegals assisting in the types of litigation most comparable to Social Security work typically exceeds $100, it is below $110. While Attorney Mittel did testify that Enna's work is comparable to that of an experienced trademark paralegal, for reasons discussed below, that testimony, even accepted at face value, does not bridge the gap to a rate of $110.
I also rely in part on the PPI/Legal index, rather than the CPI-U-ALL or the CPI-U/Northeast Services, because it is the BLS index most closely tailored to answering the question presented here: the degree to which the market rate for experienced Social Security paralegals in this district has risen. Whereas the PPI/Legal index solely addresses the price rise in legal services, the CPI-U-ALL measures price increases in goods and services, and the CPI-U/Northeast Services measures price increases in services provided in the Northeast, presumably running the gamut from unskilled, minimum-wage services to those performed by highly compensated professionals. While the CPI-U/Northeast Services is more tailored geographically, the geographic region covered is still too large to make it of greater probative value than the nationwide PPI/Legal index. The PPI/Legal index, while not a perfect fit, thus is the best fit available on the record before me.
At hearing, the commissioner's counsel advocated for the use of the CPI-U-ALL, the same index adopted in Quint to calculate increases in attorney fees above the statutory $125 cap. However, as the plaintiff's counsel argued at hearing, this court adopted the CPI-U-ALL to serve the materially different purpose of making fee adjustments above the nationwide $125 cap imposed by the EAJA. See Quint, 2006 WL 1495004, at *3 (noting that "[t]he national index ensures that the cost-of-living adjustment [above the $125 cap] is uniform for all attorney's fee awards throughout the United States[,] thereby equalizing the impact on the public fisc") (citation and internal quotation marks omitted). By contrast, because the plaintiff seeks paralegal fees in an amount below the $125 cap, she is entitled to a fee award "based upon prevailing market rates for the kind and quality of the services furnished[.]" 28 U.S.C. § 2412(d)(2)(A).
Notwithstanding the foregoing, I apply the PPI/Legal index to a different time period than those proposed by either side. I decline to use Baker as a point of reference because, in that case, the parties entered into a settlement agreement regarding the EAJA fee award sought, see Plaintiff's Exh. 7 (Settlement Agreement, Baker), and I decline to use Knudsen as a point of reference because, in the earlier case of Poissant v. Colvin, No. 2:13-cv-00162-GZS (D. Me.), this court, for the first time, approved fees for a Social Security paralegal's work at a $90 rate over the commissioner's objection, see Plaintiff's Exh. 8 (Defendant's Partial Opposition to Plaintiff's EAJA Application for Fees and Expenses ("Poissant Motion"), Poissant; Order, Poissant).
By my calculations, application of the PPI/Legal index for the period from October 2013, when paralegal work was initially performed in Poissant, see Plaintiff's Exh. 8 ([Fee Invoice], Exh. A to Poissant Motion), through September 2018, when paralegal work was most recently performed in the case of Buck S., see [Fee Invoice], Exh. A (ECF No. 21-1) to EAJA Application for Fees and Expenses (ECF No. 21), Buck S., yields a 14.4 percent increase, resulting in an hourly paralegal rate of $102.96.
In support of the requested increase to a $110 hourly rate, the plaintiff also introduced evidence that (i) the median paralegal rate for all paralegals in Maine was $110 in 2015-16, see Plaintiff's Exh. 4 (Ronald L. Burdge, Esq., United States Consumer Law Attorney Fee Survey Report 2015-16 ("Burdge Report")) at 80, and (ii) average hourly billing rates for paralegal work were $111 in the New England/Mid East region in 2014 and $137 in 2016, see Plaintiff's Exh. 3 (NALA [National Association of Legal Assistants]: The Paralegal Association, 2016 National Utilization & Compensation Survey Report ("NALA Report")) at 21.
The probative value of the Burdge Report is lessened, however, by its lack of indication of how many of the 721 survey participants reported on paralegal fees in Maine, see Burdge Report at 1, 80, and that of the NALA Report is lessened by the sheer size of the New England/Mid East region, encompassing the District of Columbia and 11 states, including New Jersey, New York, and Pennsylvania, and the fact that data was gathered from only two participants in Maine and only seven from the entire New England region, see NALA Report at 9. In addition, neither report clarifies whether its data encompasses the work of Social Security paralegals.
Nevertheless, an hourly rate of $105 for experienced Social Security paralegals in the District of Maine is not inconsistent with either the Burdge Report's finding that the median paralegal rate in Maine was $110 in 2015-16 or the NALA Report's finding that average hourly billing rates in the New England/Mid East region were $137 in 2016. Put differently, these reports neither carry the plaintiff's burden of proving that the market rate for experienced Social Security paralegals in this district is $110 an hour nor undercut the finding that it is $105.
Finally, in support of the requested $110 per hour paralegal rate, the plaintiff submitted the affidavits of Attorneys Bopp-Stark and Montgomery filed in support of fee requests in non-Social Security cases, see Plaintiff's Exhs. 1-2, and a list of 10 non-Social Security cases in which this court has awarded paralegal fees at hourly rates ranging from $90 to $112, see Plaintiff's Exh. 13 (Plaintiff's Demonstrative Aid B — Rates Awarded for Paralegal Services in Previous Cases); see also Plaintiff's Authorities.
At hearing, the plaintiff's counsel argued that this court no longer distinguishes between fees for experienced Social Security paralegals and fees for other specialized, experienced paralegals; in any event, other courts do not do so; and, further, Attorney Mittel's testimony established that Enna's work is comparable to that of an experienced paralegal specializing in trademark litigation, demonstrating that the requested hourly rate of $110 is reasonable in view of this court's award of paralegal fees at an hourly rate of $112 in the trademark infringement case of Nationwide Payment Solutions, LLC v. Plunkett, No. 2:09-cv-600-GZS, 2012 WL 234852 (D. Me. Jan. 24, 2012) (rec. dec., aff'd Feb. 15, 2012).
These arguments do not carry the day.
First, this court continues to hold that mere citation to non-Social Security cases in which this court has awarded fees for work by specialized, experienced paralegals at higher rates does not carry a Social Security claimant's burden to demonstrate that an award at that rate is appropriate in this context. See, e.g., Manniello v. Berryhill, No. 1:17-cv-00051-GZS, 2018 WL 881757, at *2 (D. Me. Feb. 14, 2018) (rec. dec., aff'd Mar. 1, 2018) (evidentiary showing made in bid for $110 per hour paralegal rate deficient when, inter alia, cases cited were "not Social Security appeals cases").
Second, while the plaintiff's counsel cited Ulugalu v. Berryhill, Case No.: 3:17-cv-01087-GPC-JLB, 2018 WL 2012330 (S.D. Cal. Apr. 30, 2018), and Moreno v. Comm'r of Soc. Sec., Case No. 1:16-cv-1600-SAB, 2018 WL 2388805 (E.D. Cal. May 25, 2018), as examples of cases in which courts did not distinguish between hourly rates for Social Security paralegals and other types of paralegals in determining EAJA fee awards, requested paralegal rates in both cases were unopposed, and in Ulugalu, the court nevertheless reduced the requested paralegal hourly rate of $125 to $100. See Ulugalu, 2018 WL 2012330, at *4; Moreno, 2018 WL 2388805, at *3.
Third, and finally, while Attorney Mittel testified that, in his opinion, the paralegal work performed by Enna was equivalent to paralegal work in trademark cases and, if anything, more complex than trademark work, the plaintiff's reliance on the hourly rate of $112 awarded in Plunkett is misplaced. The defendant in Plunkett filed no objection to the fee request, and, in deeming the requested paralegal fee award at rates ranging from $90 to $112 reasonable, the court relied not on market rate evidence but, rather, on citation to a then-recent case in which a paralegal fee rate of $100 was found reasonable. See Plunkett, 2012 WL 234852, at *1, 3. Most recently, this court has awarded fees for experienced, specialized paralegals in non-Social Security cases at an hourly rate of $105. See Dorr v. Woodlands Senior Living or Brewer, LLC, 1:15-cv-00092-JCN, 2017 WL 4329765, at *2 (D. Me. Sept. 29, 2017); Prescott v. Rumford Hosp., 2:13-cv-00460-JDL, 2016 WL 3406079, at *2 (D. Me. June 17, 2016).
The commissioner's evidence does not call into question my finding that the market rate for experienced Social Security paralegals in this district has risen to $105 per hour. The affidavit of Assistant Regional Counsel Vanegas states that it has been her practice, commensurate with court precedent in the District of Maine, to direct attorneys in the OCG's Boston regional office not to agree to more than $90 per hour for paralegal rates and that, to the best of her knowledge, no court has awarded more than $90 per hour for such services in the Districts of Maine, New Hampshire, Massachusetts, or Rhode Island. See Defendant's Exh. 1. However, this begs the question of whether an increase in those rates is warranted, and the commissioner's counsel conceded that it was, albeit only to between $96 and $97. The fact that, in 2016 and 2018 cases, the plaintiff's attorney's law firm sought and was awarded EAJA paralegal fees for work in Social Security cases at a $90 rate by the United States District Court for the District of Massachusetts, see Defendant's Exh. 2 (Sinclair v. Berryhill, 284 F.Supp.3d 111, 116-17 (D. Mass. 2018)); Defendant's Exh. 3 (Dine v. Colvin, Civil Action No. 15-cv-10140-ADB, 2016 WL 7256762, at *3 n.5 (D. Mass. Dec. 15, 2016)), also begs the question of whether, on the showing made here, an increase is warranted.
In sum for the foregoing reasons, I recommend that the court award fees for the work of the plaintiff's attorney's experienced paralegals at a $105 hourly rate.
I address one final point: the commissioner's suggestion that, going forward, the court automatically adjust the paralegal rate in Social Security cases in accordance with the CPI-U-ALL. It is not the job of the court to adjust such rates automatically but, rather, to review fee petitions. That said, in view of the parties' long-running dispute over appropriate paralegal rates and the time consumed in resolving this issue by way of an evidentiary hearing, I agree that the court should pick a measure by which such rates should be adjusted going forward.
I recommend that, until such time as this court approves EAJA Social Security paralegal rates exceeding the statutory $125 cap, those rates be adjusted by application of the PPI/Legal index. As discussed above, while this index is not perfectly suited to the task, it is the best suited of the three BLS indices proposed by the parties to determine an appropriate adjustment in the market rate for the services of Social Security paralegals in this district. Once the court determines that the market rate for Social Security paralegals has hit the $125 cap, the appropriate EAJA hourly rate should be adjusted in accordance with the CPI-U-ALL, consistent with this court's ruling in Quint.
For the foregoing reasons, I recommend that the court