Opinion
1:18-cv-1976
08-08-2022
PATRICIA A. STAYTON, Plaintiff, v. COMMISSIONER OF SOCIAL SECURITY, Defendant.
OPINION & ORDER [Resolving Doc. 15]
JAMES S. GWIN, UNITED STATES DISTRICT JUDGE:
In this Social Security case, counsel for Plaintiff Patricia Stayton seeks approval for $13,225.75 in attorney's fees. Respondent Commissioner does not oppose.
Doc. 15.
Doc. 16.
This Court concludes that awarding $13,225.75, or $618.02 per hour, would be a windfall for the Plaintiff's attorney.
This Court ORDERS payment of attorney's fees at $400 per hour for 21.4 hours totaling $8,560.
I. Background
In 2018, Plaintiff Stayton challenged the Commissioner of Social Security's decision to deny her disability benefits. After Plaintiff filed her brief on the merits, the parties jointly stipulated that the case should be remanded to the Commissioner.
Doc. 1.
Doc.
This Court remanded the case to the Commissioner. The Court also granted the parties' joint motion for Equal Access to Justice Act fees. Through that order, Plaintiff's counsel received $3,978.07 in fees under 28 U.S.C. § 2412.
Doc. 12.
Doc. 14.
On remand, the Commissioner awarded the Plaintiff $137,303 in past-due benefits.
Doc. 15 at 1.
Plaintiff now asks this Court to approve allotting 9% of the award, or $13,225.75, to her attorney.
The contingency fee arrangement states that Plaintiff's counsel may collect up to 25% of past-due benefits after a decision in Plaintiff's favor. Doc. 15-4 at 1. Plaintiff's counsel already received $21,100 in fees for work before the Commissioner. Doc. 15 at 1. Combined with the $13,225.75, the requested total award would be $34,325.75, or 25% of the award.
The contingency fee arrangement states that Plaintiff's counsel may collect up to 25% of past-due benefits after a decision in Plaintiff's favor. The fees award that Plaintiff's counsel now requests is the maximum amount that the contingency fee agreement authorizes. Plaintiff's counsel already received $21,000 in fees for work before the Commissioner.
Doc. 15-4 at 1.
Doc. 15 at 1.
Plaintiff's counsel says that counsel will reimburse the $3,978.07 in already-received fees to Plaintiff if this Court approves a greater award.
Doc. 15 at 2.
II. Legal Standard
This Court must determine a reasonable attorney's fee in this case.
In a typical Social Security action, a plaintiff sues the Commissioner for denying a benefits claim. When a plaintiff wins, she receives a payment of “past-due benefits” totaling what she would have received were her claim not originally denied.
Under 42 U.S.C. § 406(b), an attorney may receive up to 25% of a past-due benefit award. However, courts must review the reasonableness of contingency fees, even if they fall within the statutorily allotted amount.
Gisbrecht v. Barnhart, 535 U.S. 789, 807 (2002).
In the Sixth Circuit, there is “a rebuttable presumption that an attorney would receive the full 25% contingency fee under contract unless . . . the attorney would enjoy an undeserved windfall due to the client's large back pay award or the attorney's relatively minimal effort.”
Hayes v. Sec'y of HHS, 923 F.2d 418, 419 (6th Cir. 1990).
Factors courts consider in determining whether a contingency fee payout constitutes a windfall include (1) “the standard rates applied to social security fee requests;” (2) whether an award is more than twice the standard hourly rate; and (3) the “the ‘brevity' . . . of the representation.” “If the benefits are large in comparison to the amount of time counsel spent on the case, a downward adjustment is . . . in order.”
Lasley v. Comm'r of Soc. Sec., 771 F.3d 308, 310 (6th Cir. 2014).
Hayes, 923 F.2d at 422.
Lasley, 771 F.3d at 310.
Gisbrecht, 535 U.S. at 808.
III. Discussion
Here, the Plaintiff's attorney would enjoy a windfall if this court approved a $618.02 per hour rate.
Capping the fees at $400 per hour is consistent with previous decisions in this Court and in this District.
Hyla v. Comm'r of Soc. Sec., 1:18-CV-1279, 2020 WL 3512843, at *1 (N.D. Ohio June 29, 2020); Daniels v. Colvin, 1:11-CV-806, 2017 WL 35697, at *1 (N.D. Ohio Jan. 4, 2017); Hayhurst v. Berryhill, 5:16-CV-576, 2018 WL 1122135, at *2 (N.D. Ohio Mar. 1, 2018); Hayes v. Colvin, 1:13CV2812, 2015 WL 4275506, at *3 (N.D. Ohio July 14, 2015) (collecting cases) (“Courts in this District have previously determined that an hourly rate of up to $350 is an appropriate upper limit in awarding attorney fees pursuant to § 406(b).”).
In addition, although this Court acknowledges that the Plaintiff's counsel succeeded, he only represented his client for 21.4 hours-a relatively brief amount of time.
Doc. 15 at 2.
Therefore, the Court reduces the attorney's fees to $400 per hour for 21.4 hours. The total fees award is $8,560.
IV. Conclusion
Accordingly, this Court ORDERS payment of attorney's fees at a rate of $400 per hour for 21.4 hours for a total award of $8,560. The Plaintiff's attorney must also refund the Plaintiff the $3,978.07 in attorney's fees this Court previously awarded under 28 U.S.C. § 2412.
IT IS SO ORDERED.