Booth v. Commissioner of Social Security

645 F. App'x 455
CourtCourt of Appeals for the Sixth Circuit
DecidedApril 20, 2016
DocketNo. 15-5892
StatusPublished
Cited by11 cases

This text of 645 F. App'x 455 (Booth v. Commissioner of Social Security) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Booth v. Commissioner of Social Security, 645 F. App'x 455 (6th Cir. 2016).

Opinion

HELENE N. WHITE, Circuit Judge.

Stevie Dale Booth successfully challenged the Commissioner of Social Security’s denial of his application for disability benefits, and his attorney, Wolodymyr Cy-briwsky — the real party in interest in this case — sought attorney fees. The district court granted the fee request, but noted that under 42 U.S.C. § 406, the fee would have to be paid out of Booth’s benefits award, which the Commissioner had already disbursed. After Cybriwsky was unsuccessful in his efforts to recover the fee from Booth, Cybriwsky moved to require payment by the Commissioner. The district court denied the motion, and we AFFIRM.

I.

A.

The Social Security Act governs attorney fees in Social Security cases, both administrative proceedings before the Commissioner and court actions seeking review of the Commissioner’s decision. 42 U.S.C. § 406. The Supreme Court has explained:

For representation of a benefits claimant at the administrative level, an attorney may file a fee petition or a fee agreement. 42 U.S.C. § 406(a). In response to a petition, the agency may allow fees “for services performed in connection with any claim before” it; if a determination favorable to the benefits claimant has been made, however, the Commissioner of Social Security “shall ... fix ... a reasonable fee” for an attorney’s services. § 406(a)(1) (emphasis added). In setting fees under this method, the agency takes into account, in addition to any benefits award, several other factors. See 20 CFR § 404.1725(b). Fees may be authorized, on petition, even if the benefits claimant was unsuccessful. § 404.1725(b)(2).
As an alternative to fee petitions, the Social Security Act, as amended in 1990, accommodates contingent-fee agreements filed with the agency in advance of a ruling on the claim for benefits. Omnibus Budget Reconciliation Act of 1990, 104 Stat. 1388-266 to 1388-267, as amended, 42 U.S.C. §§ 406(a)(2)-(4). If the ruling on the benefits claim is favorable to the claimant, the agency will generally approve the fee agreement, [457]*457subject to this limitation: Fees may not exceed the lesser of 25 percent of past-due benefits or $4,000 (increased to $5,300 effective February 2002). §§ 406(a)(2)(A)(ii), (iii); 67 Fed.Reg. 2477 (2002). [The applicable maximum has since been increased to $6,000. 74 Fed.Reg. 6080-02 (Feb. 4,2009).]
For proceedings in court, Congress provided for fees on rendition of “a judgment favorable to a claimant.” 42 U.S.C. § 406(b)(1)(A). The Commissioner has interpreted § 406(b) to “pro-hibi[t] a lawyer from charging fees when there is no award of back benefits.” Tr. of Oral Arg. 37-38.
As part of its judgment, a court may allow “a reasonable fee ... not in excess of 25 percent of the ... past-due benefits” awarded to the claimant. § 406(b)(1)(A). The fee is payable “out of, and not in addition to, the amount of [the] past-due benefits.” Ibid. Because benefits amounts figuring in the fee calculation are limited to those past due, attorneys may not gain additional fees based on a claimant’s continuing entitlement to benefits.
The prescriptions set out in §§ 406(a) and (b) establish the exclusive regime for obtaining fees for successful representation of Social Security benefits claimants. Collecting or even demanding from the client anything more than the authorized allocation of past-due benefits is a criminal offense. §§ 406(a)(5), (b)(2); 20 CFR §§ 404.1740-1799.

Gisbrecht v. Barnhart, 535 U.S. 789, 793-96, 122 S.Ct. 1817, 152 L.Ed.2d 996 (2002) (footnotes and some citations omitted). In the Sixth Circuit, an attorney who represents the claimant before the Commissioner and in court may separately receive fees for both representations, meaning the attorney may receive total fees exceeding twenty-five percent of the claimant’s benefits award. Horenstein v. Sec’y of Health & Human Servs., 35 F.3d 261, 262-63 (6th Cir.1994) (en banc). But see Rice v. Astrue, 609 F.3d 831, 834-35 & n. 12 (5th Cir.2010) (discussing the circuit split on this issue); Clark v. Astrue, 529 F.3d 1211, 1214-15 (9th Cir.2008) (same).

B.

After the Social Security Administration denied Booth’s benefits claim, Cybriwsky filed a complaint in the district court on Booth’s behalf. The Commissioner filed an answer, and then immediately moved for entry of judgment and remand, with the understanding that the Administration would issue a favorable decision. Booth consented to the remand, and the district court returned the case to the Administration. The Administration issued a decision awarding Booth $26,220 in past-due benefits in February 2012. The following month, the Administration sent Booth and Cybriwsky letters explaining that it would withhold twenty-five percent of Booth’s past-due benefits — a total of $6,555 — for payment of attorney fees. In June 2012, the Commissioner awarded Cybriwsky $6,000 in § 406(a) fees for his administrative representation, pursuant to a fee agreement between Booth and Cybriwsky. Soon after, the Commissioner released the remaining $555 in withheld funds to Booth.

In May 2013, more than a year after the Administration’s favorable decision, Cy-briwsky returned to the district court to petition for additional attorney fees for court proceedings under § 406(b) of the Social Security Act. Cybriwsky requested $6,555 for his services in federal court, relying on a fee agreement,1 and submitted [458]*458an itemized list of his hours. The Commissioner did not oppose the fee request, agreeing the fee was reasonable. The district court granted Cybriwsky the full $6,555 in August 2014. Because § 406(b) required the fee to be paid from Booth’s past-due benefits, the court noted, Cybriw-sky would need to collect the award directly from Booth.

A month later, Cybriwsky filed a motion seeking payment by the Commissioner of the § 406(b) fee for court representation. Cybriwsky explained that he had requested the $6,555 fee from Booth, who refused to pay, and asked the court to order the Commissioner to pay Cybriwsky the fee directly. The Commissioner opposed the motion because the past-due benefits had already been released. The district court construed Booth’s motion to require payment by the Commissioner as a Rule 59(e) motion to reconsider the court’s earlier order granting fees, and denied the motion in June 2015.

II.

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Cite This Page — Counsel Stack

Bluebook (online)
645 F. App'x 455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/booth-v-commissioner-of-social-security-ca6-2016.