Crawford v. Astrue

545 F.3d 854, 2008 U.S. App. LEXIS 20310, 2008 WL 4352375
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 25, 2008
Docket06-55822, 06-55954, 06-56284
StatusPublished
Cited by2 cases

This text of 545 F.3d 854 (Crawford v. Astrue) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crawford v. Astrue, 545 F.3d 854, 2008 U.S. App. LEXIS 20310, 2008 WL 4352375 (9th Cir. 2008).

Opinions

Opinion by Judge FRIEDMAN; Dissent by Judge B. FLETCHER.

FRIEDMAN, Circuit Judge:

We decide each of these three appeals, which were argued together, in a single opinion. In these cases, lawyers who successfully represented social security claimants under contingent-fee contracts challenge the sufficiency of the fees the United States District Court for the Central District of California awarded for the services they performed in the judicial phase of the cases. The lawyers contend that in setting their fees the district court failed to follow the methodology the Supreme Court prescribed in Gisbrecht v. Barnhart, 535 U.S. 789, 122 S.Ct. 1817, 152 L.Ed.2d 996 (2002), for determining attorney fees in social security cases.

We hold, however, that in awarding the fees in these eases the district court did not deviate from the standards announced in Gisbrecht and did not abuse its discretion. We, therefore, affirm in all three cases.

I. Each of these cases followed the same pattern: (1) after the Social Security Administration (“Administration”) denied a claim for benefits, the claimant retained an [857]*857attorney to institute a judicial challenge to the administrative action and signed a written agreement under which the attorney would be paid twenty-five percent of “the back pay awarded”; (2) after suit was filed, the case was remanded to the Administration; (3) the Administration awarded the claimant benefits, including substantial past benefits; (4) the attorney requested from the district court a fee of less than twenty-five percent of the back benefits; and (5) the district court (acting through a magistrate judge) awarded the attorney less than the amount sought.

Each of the three claimants was represented by a different attorney: Brian C. Shapiro (“Shapiro”) represented Clara Crawford, Young Cho (“Cho”) represented Ruby Washington, and Denise Bourgeois Haley (“Haley”) represented Daphne M. Trejo. The three attorneys were affiliated with the Lawrence D. Rohlfing (“Rohlf-ing”) law firm, which specializes in social security matters. Since the firm handled all its work on a contingent-fee basis, it had no regular hourly billing rates. In each case the district court calculated what would be a reasonable hourly rate for the work performed. The differences among the three cases relate to the work the attorney performed in the particular case, the time expended, the amount of back benefits awarded, the attorney fee requested, and the fee awarded.

In the Craivford case (No. 06-55822), Shapiro expended 19.5 hours of his own time and 4.5 hours of paralegal time. The past-due benefits awarded were $123,891.20, twenty-five percent of which was $30,972.80. Shapiro sought a fee of $21,000.00, which was 16.95 percent of the award. The court determined that a reasonable fee would be $8,270.00, which it reduced by $3,150.00 to reflect the fee already paid under the Equal Access to Justice Act, producing a net fee award of $5,120.00.

In the Washington case (No. 06-55954), Cho devoted 17.45 hours of his time and 4.7 hours of paralegal time. The past-due benefits awarded were $76,041.00, twenty-five percent of which was $19,010.25. Cho sought a fee of $11,500.00, which was fifteen percent of those benefits. The court determined that a fee of $8,825.53 would be reasonable, which it reduced by the $2,800.00 that had already been paid under the Equal Access to Justice Act, resulting in a net fee award of $6,025.33.

In the third case, Trejo (No. 06-56284), Haley spent 25.5 hours of her time and 1.1 hours of paralegal time. The past-due benefits awarded were $172,223.25, twenty-five percent of which was $43,055.75. Haley sought a fee of $24,000.00, which was fourteen percent of the benefits. The district court determined that a reasonable fee would be $12,650.40, which it reduced by the $3,200.00 prior payment made under the Equal Access to Justice Act, resulting in a net fee of $9,450.00.

We discuss in detail, in Parts IIB and IID, below, the court’s determinations and reasoning in setting the fee in each case.

II. A. Before Gisbrecht, courts ordinarily used a “lodestar” calculation for determining a “reasonable” attorney fee under fee-shifting statutes that required the losing party to pay the prevailing party’s legal fees. See Gisbrecht, 535 U.S. at 801-02, 122 S.Ct. 1817. Under that calculation, to produce a reasonable fee a court multiplied the “number of hours reasonably devoted to each case ... by a reasonable hourly fee.” Id. at 797-98, 122 S.Ct. 1817.

The lodestar calculation also was used in determining reasonable attorney fees in social security cases, although the Social Security Act does not shift payment of attorney fees from the prevailing to the [858]*858losing party. Instead, it provides for payment of a successful claimant’s attorney fee out of the benefits the claimant recovers. A court rendering a judgment favorable to a social security claimant represented by an attorney may “allow as part of its judgment a reasonable fee for such representation, not in excess of 25 percent of the total of the past-due benefits to which the claimant is entitled by reason of such judgment.” 42 U.S.C. § 406(b)(1)(A). Such fee will be paid to the attorney “out of, and not in addition to, the amount of such past-due benefits.” Id. When Gisbrecht was decided, such contingent-fee contracts were “the most common fee arrangement between attorneys and Social Security claimants.” Gisbrecht, 535 U.S. at 800, 122 S.Ct. 1817.

Gisbrecht, in which the Supreme Court reviewed one of our decisions, was such a lodestar social security attorney fee case. There, the district court used the lodestar calculation to determine attorney fees in four social security cases, but “set hourly lodestar rates lower than those that Plaintiffs had requested.” Gisbrecht v. Apfel, 238 F.3d 1196, 1198 (9th Cir.2000). We affirmed the attorney fee awards, stating that “[t]his court follows the ‘lodestar’ method of calculating fees under 42 U.S.C. § 406(b)(1)(A),” and rejected the contention that “the district courts abused their discretion by refusing to increase the lodestar fees based on the contingent nature of their fee agreements.” Id. at 1197, 1198-99.

The Supreme Court reversed. The Court rejected this court’s view that the lodestar calculation was the sole basis for determining attorney fees under the Social Security Act and that a contingent-fee agreement was not to be considered. It “concludefd]” that “ § 406(b) does not displace contingent-fee agreements as the primary means by which fees are set for successfully representing Social Security benefits claimants in court. Rather, § 406(b) calls for court review of such arrangements as an independent check, to assure that they yield reasonable results in particular cases.” Gisbrecht, 535 U.S. at 807, 122 S.Ct. 1817 (footnote omitted). It added that “[wjithin the 25 percent boundary ... the attorney for the successful claimant must show that the fee sought is reasonable for the services rendered.” Id. The Court additionally stated:

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Related

Cantrell v. Astrue
639 F. Supp. 2d 1033 (N.D. California, 2009)
Crawford v. Astrue
545 F.3d 854 (Ninth Circuit, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
545 F.3d 854, 2008 U.S. App. LEXIS 20310, 2008 WL 4352375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crawford-v-astrue-ca9-2008.