IRMA CARRILLO RAMIREZ, Magistrate Judge.
Pursuant to Special Order No. 3-251, this case was automatically referred for findings, conclusions, and recommendation. Before the Court is the plaintiff's Petition to Obtain Approval of a Fee for Representing a Social Security Claimant, filed August 14, 2014 (doc. 30). Based on the relevant filings, evidence, and applicable law, the petition should be
On December 16, 2011, Carol L. Baker (Plaintiff) filed a complaint seeking reversal and remand of the Commissioner of Social Security's (Commissioner) decision denying her claim for disability benefits under Title II of the Social Security Act. (Doc. 1.) On March 18, 2013, the Court entered judgment, reversing and remanding the case for further proceedings. (Docs. 22, 23.) Plaintiff then moved for an award of attorney's fees under § 406(b) of the Social Security Act in the amount of $17,639.71. (Doc. 30.) She seeks this award pursuant to a fee agreement in which she agreed to pay 25% of her past-due benefits for her representation in a federal court. (Doc. 30 at 6-7, 51-52.) After a timely-filed response by the Commissioner (doc. 32), the motion is now ripe for recommendation.
"Sections 406(a) and 406(b) of the Social Security Act provide for the discretionary award of attorney's fees out of the past-due benefits recovered by a successful claimant in a Social Security action." Murkeldove v. Astrue, 635 F.3d 784, 787 (5th Cir.2011). While § 406(a) governs the award of attorney's fees for representing a claimant in administrative proceedings, § 406(b) governs the award of attorney's fees for representing a claimant in court. Gisbrecht v. Barnhart, 535 U.S. 789, 794 (2002). Section 406(b) provides:
42 U.S.C.A. § 406(b)(1)(A) (West 2010) (emphasis added); see also Murkeldove, 635 F.3d at 788 (citing Gisbrecht, 535 U.S. at 800). Contingency fee agreements in social security cases are unenforceable to the extent that they provide for fees exceeding 25% of past-due benefits. Gisbrecht, 535 U.S. at 807. Even when contingency fee agreements are within the statutory ceiling, "§ 406(b) calls for court review of such arrangements as an independent check, to assure that they yield reasonable results in particular cases." See Gisbrecht, 535 U.S. at 807.
The reasonableness of attorney's fees awarded pursuant to a fee-shifting statute is generally determined by using the lodestar method.
The Fifth Circuit has not prescribed an exhaustive list of factors to consider in determining whether a fee award is unearned. It has, however, noted with approval several factors considered by lower courts, including "risk of loss in the representation, experience of the attorney, percentage of the past-due benefits the fee constitutes, value of the case to a claimant, degree of difficulty, and whether the client consents to the requested fee." Id. at 381-82 (citing Brannen v. Barnhart, No. 1:99-CV-325, 2004 WL 1737443, at *5 (E.D.Tex. July 22, 2004)). The claimant's attorney bears the burden of persuasion on the reasonableness of the fees sought. See Gisbrecht, 535 U.S. at 807 n. 17.
With regard to the first factor, courts have consistently recognized that "there is a substantial risk of loss in civil actions for social security disability benefits." Charlton v. Astrue, No. 3:10-CV-0056-O-BH, 2011 WL 6325905, at *4 (N.D.Tex. Nov.22, 2011), rec. adopted, 2011 WL 6288029 (N.D.Tex. Dec.14, 2011) (noting that in the year 2000, only 35 percent of claimants who appealed their case to federal court received benefits); see also Hartz v. Astrue, No. CIV.A. 08-4566, 2012 WL 4471846, at *6 (E.D.La. Sept.12, 2012), rec. adopted, 2012 WL 4471813 (E.D.La. Sept.27, 2012) (collecting cases). Here, counsel faced a substantial risk of loss, as Plaintiff had lost at all levels of the administrative proceedings, and the Commissioner had fully briefed a motion opposing remand. (See doc. 20.)
Counsel's resulting hourly rate of $747.45 ($17,639.71 divided by 23.60 hours of attorney work devoted to the case) is slightly less than twice his regular hourly rate of $375.
Moreover, counsel provided effective and efficient representation, expending over 20 hours drafting a 24-page motion for summary judgment and a 9-page reply brief that identified and analyzed two legal issues. (See docs. 17, 21.) The fees requested reflect the favorable result obtained, given that Plaintiff recouped $52,919.18 in wrongfully-denied past-due benefits. (See doc. 30 at 39.) By the time counsel represented Plaintiff in federal court, he had over 36 years of experience practicing exclusively in Social Security law. (Doc. 30 at 12-13); see also Jeter, 622 F.3d at 381-82. The contingency fee requested in this case represents exactly 25% of the past-due benefits awarded to Plaintiff. (See doc. 30 at 41.) Finally, while certainly not determinative, the existence of a contingency fee agreement indicates that Plaintiff consented to the payment of a 25% fee. See Jeter, 622 F.3d at 381-82; Hartz, 2012 WL 4471846, at *6.
After weighing the relevant factors, the Court finds that the requested contingency fee award in the amount of $17,639.71 is reasonable and should be granted.
The Petition to Obtain Approval of a Fee for Representing a Social Security Claimant, filed August 14, 2014 (doc. 30), should be