FRANK D. WHITNEY, Chief District Judge.
THIS MATTER is before the Court on Plaintiff's Amended Motion for Attorney's Fees (Doc. No. 22) pursuant to the Equal Access to Justice Act ("EAJA"), 28 U.S.C. § 2412(d). In addition to attorney's fees, the Motion also seeks to recover costs associated with this litigation. Upon review of Plaintiff's Motion and supporting materials, and for the reasons set forth below, the Motion is GRANTED, WITH MODIFICATION, IN PART and DENIED IN PART.
On March 2, 2015, Plaintiff filed a Complaint in this Court for review of an unfavorable decision on her application for Social Security Disability Insurance Benefits. (Doc. No. 1). On March 24, 2015, the Court granted Plaintiff leave to proceed in forma pauperis. (Doc. No. 3). Plaintiff and Defendant filed cross motions for Summary Judgment. (Doc. Nos. 13 and 16, respectively). On December 10, 2015, the Court remanded the case pursuant to Sentence Four of 42 U.S.C. § 405(g) to the Commissioner for further administrative proceedings consistent with the decision.
The EAJA provides that a district court "shall award to a prevailing party . . . fees and other expenses . . . incurred by that party in any civil action" against the United States, or an agency thereof, "unless the court finds that the position of the United States was substantially justified or that special circumstances make an award unjust." 28 U.S.C. § 2412(d)(1)(A). When the court remands under Sentence Four of 42 U.S.C. § 405(g), the plaintiff is properly considered the prevailing party.
While the EAJA includes a limited abrogation of the United States' sovereign immunity for the purpose of the recovery of a prevailing parties' costs, it does so "[e]xcept as otherwise provided by statute." 28 U.S.C. § 2412(a). The in forma pauperis statue, 28 U.S.C. § 1915(f), is one such statute limiting recovery of costs under the EAJA. In cases where the plaintiff proceeds in forma pauperis, "the United States shall not be liable for any of the costs . . . incurred" in the lawsuit. 28 U.S.C. § 1915(f).
Any award of attorney's fees under the EAJA must be "reasonable" with respect to both the number of hours claimed and the hourly rate charged.
The Supreme Court has held that attorney's fees awarded under the EAJA are payable to the prevailing party and not to the prevailing party's attorney, and that such fees are subject to the offset of any preexisting debt the prevailing party may owe to the government.
In light of the Court's prior remand of this matter under Sentence Four of 42 U.S.C. § 405(g), Plaintiff is properly considered a "prevailing party" in this action.
However, Defendant does object to Plaintiff's request for reimbursement of $424.00 in costs because Plaintiff proceeded in forma pauperis and 28 U.S.C. §1915(f) bars the United States' liability for costs incurred by prevailing in forma pauperis litigants. (Doc. No. 24). Plaintiff neither addressed this issue in her Motion nor raised any objection to the Commissioner during the LR 7.1(B) conference preceding the filing of the Commissioner's opposition to the award of costs in this case. (Doc. No. 24, ¶ 4). Regardless, the Court finds the Commissioner's position concerning the interaction of 28 U.S.C. § 2412 and 28 U.S.C. § 1915(f) to be correct. Therefore, the Court concludes that Plaintiff is not entitled to a reimbursement of costs, but is entitled to an award of attorney's fees under the EAJA.
Having determined that Plaintiff is entitled to a fee award, the Court now turns to the issue of the amount to be awarded. Plaintiff's Amended Motion and the affidavit of Plaintiff's counsel represent that Plaintiff's counsel expended a total of 30.7 hours pursuing this case. (Doc. No. 22, ¶ 8; Doc. No. 20-1, ¶ 4). Plaintiff further represents that the parties "have agreed to an award of $5,400.00 in full satisfaction of any and all claims for attorney fees for legal services rendered" under the EAJA. (Doc. No. 22, ¶ 9). Based on these representations, Plaintiff seeks an hourly rate of $175.90.
Upon review of Plaintiff's itemized time sheet (Doc. No. 20-1, ¶ 4), the Court takes no issue with the amount of hours claimed. However, Plaintiff's Motion fails to articulate any justification—i.e. cost of living increases or other special factor— for an upward departure from the statutorily prescribed $125.00 per hour rate.
The mere absence of special circumstances that would render attorney's fees unjust does not equate automatically to the presence of "a special factor" justifying a higher fee. This is particularly true where the statutory language of the EAJA evinces no Congressional intent to create any mechanism for automatic rate increases—pegged to inflation or any other economic factor—in § 2412.
Accordingly, the Court finds that upward adjustment is not justified in this case. An award of attorney's fees consistent with the maximum hourly rate allowed by the EAJA is therefore appropriate. Based upon the hourly rate of $125.00 for 30.7 hours spent, the Court concludes that a recalculated fee of Three Thousand Eight Hundred Thirty-Seven Dollars and Fifty Cents ($3,837.50) is justified.
The Plaintiff has attached to the Motion a copy of the fee agreement entered into with her counsel in which she assigns any attorney's fee award pursuant to the EAJA directly to counsel. (Doc. No. 20-2). The Court finds that the Commissioner should accept the assignment by Plaintiff of the awarded fees to her attorney and shall pay that award of fees directly to Plaintiff's counsel; provided, however, it is shown that as of the date of this Order, Plaintiff does not owe any debt to the United States Government which is subject to offset.
IT IS, THEREFORE, ORDERED that Plaintiff's Amended Motion for Attorney's Fees under the EAJA (Doc. No. 22) is hereby GRANTED, WITH MODIFICATION, IN PART and DENIED IN PART as stated herein and the Plaintiff is hereby awarded attorney's fees in the amount of Three Thousand Eight Hundred Thirty-Seven Dollars and Fifty Cents ($3,837.50) which sum is in full satisfaction of any and all claims by Plaintiff in this case pursuant to EAJA, 28 U.S.C. § 2412(d), and subject to the limitations set forth herein.
IT IS FURTHER ORDERED that the Commissioner shall inform Plaintiff's counsel whether Plaintiff owes a debt to the Government by which this fee award may be offset no later than thirty (30) days from entry of this Order. Provided that Plaintiff does not owe any debt to the United States Government which is subject to offset, the Commissioner shall honor the Assignment of fees. In the event that Plaintiff does, however, owe the United States Government any debt subject to offset, the Commissioner shall pay any attorney's fees remaining after such offset to Plaintiff instead of to her attorney.
IT IS FURTHER ORDERED that no additional Petition pursuant to 28 U.S.C. § 2412(d) may be filed.
IT IS FURTHER ORDERED that the sum of Four Hundred Twenty-Four Dollars and No Cents ($424.00) requested for the reimbursement of costs is DENIED.
IT IS SO ORDERED.