Ellick v. Barnhart

445 F. Supp. 2d 1166, 2006 U.S. Dist. LEXIS 80532, 2006 WL 2458640
CourtDistrict Court, C.D. California
DecidedAugust 17, 2006
DocketCV 03-6814-E
StatusPublished
Cited by19 cases

This text of 445 F. Supp. 2d 1166 (Ellick v. Barnhart) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ellick v. Barnhart, 445 F. Supp. 2d 1166, 2006 U.S. Dist. LEXIS 80532, 2006 WL 2458640 (C.D. Cal. 2006).

Opinion

OPINION AND ORDER GRANTING IN PART COUNSEL’S MOTION FOR ATTORNEY FEES PURSUANT TO 42 U.S.C. SECTION 406(b)

EICK, United States Magistrate Judge.

PROCEEDINGS

On June 16, 2006, counsel for Plaintiff filed “Counsel’s Notice of Motion and Motion for Attorney Fees Pursuant to 42 USC § 406(b), etc.” (“the Motion”), seeking $18,500. On July 12, 2006, Defendant filed a response that purportedly takes no position as to whether the requested fee is reasonable, but notes certain factors for the Court’s consideration. Counsel for Plaintiff filed a reply on July 17, 2006. The Court has taken the Motion under submission without oral argument. See Local Rule 7-15; June 16, 2006 Minute Order. 1

BACKGROUND

Plaintiff filed a complaint on September 26, 2003, seeking review of the Commissioner’s denial of disability benefits. 2 Fol *1167 lowing Defendant’s answer, Plaintiff filed a motion for summary judgment. The motion for summary judgment asserted that the Commissioner’s denial should be reversed, and benefits should be awarded, because: (1) the Administrative Law Judge (“ALJ”) allegedly failed to offer any reason to reject the treating physician’s opinion that Plaintiff is disabled; and (2) the ALJ allegedly failed to offer clear and convincing reasons to reject Plaintiffs subjective complaints of pain. See “Notice of Motion and Motion for Summary Judgment, etc.,” filed March 30, 2004.

On May 7, 2004, the parties stipulated to remand the matter to the Social Security Administration for further proceedings pursuant to sentence four of 42 U.S.C. section 405(g). The Court entered an order and a judgment accordingly. See “Stipulation to Voluntarily Remand Pursuant to Sentence Four of 42 U.S.C. § 405(g) and to Entry of Judgment; Order Thereon” and “Judgment of Remand,” filed May 7, 2004.

Following remand, the Administration conducted proceedings that resulted in a favorable decision for Plaintiff and an award of past-due benefits from December 1998, totaling approximately $68,097. See Exhibits 2 and 3 filed with the Motion. 3 Of this award, the Commission withheld $17,024.25 (ie., 25 percent) for attorney fees. See “Defendant’s Response to Plaintiffs Motion for Attorneys’ Fees Pursuant to 42 U.S.C. § 406(b),” p. 5, n. 4.

Counsel for Plaintiff now moves for $18,500 in fees, which counsel asserts is $8.25 less than 25 percent of the approximated award. 4 Counsel acknowledges that any award made under section 406(b) must be offset by the $2,600 in attorney fees counsel previously recovered under the Equal Access to Justice Act (“EAJA”). See Motion, p. 3; “Stipulation for the Award and Payment of Attorney Fees Under the EAJA, etc.,” filed July 12, 2004; 28 U.S.C. § 2412. In support of the Motion, counsel for Plaintiff submitted a copy of the fee agreement between Plaintiff and counsel, which provides for a contingent fee of 25 percent of any past-due benefits awarded on the reversal of any unfavorable ALJ decision. See Motion, Exhibit 1 at ¶¶ 3-4.

APPLICABLE LAW

Under 42 U.S.C. section 406(b), the Court may allow attorney fees in a “reasonable” amount, not to exceed 25 percent of the total past-due benefits awarded to the claimant. The Court has an independent duty to ensure that a section 406(b) contingency fee is reasonable. See id.; Gisbrecht v. Barnhart, 535 U.S. 789, 122 *1168 S.Ct. 1817, 152 L.Ed.2d 996 (2002) (“Gisbrecht ”). 5

The United States Supreme Court has explained that section 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. Congress has provided one boundary line: Agreements are unenforceable to the extent that they provide for fees exceeding 25 percent of the past-due benefits. Within this 25 percent boundary ... the attorney for the successful claimant must show that the fee sought is reasonable for the services rendered.

Gisbrecht, at 807, 122 S.Ct. 1817 (citations omitted).

When a contingency fee falls within the 25 percent boundary, as here, Gisbrecht instructs that the Court appropriately may reduce counsel’s recovery:

... based on the character of the representation and the results the representative achieved. If the attorney is responsible for delay, for example, a reduction is in order so that the attorney will not profit from the accumulation of benefits during the pendency of the case in court. If the benefits are large in comparison to the amount of time counsel spent on the case [thereby resulting in a windfall], a downward adjustment is similarly in order.

Id. at 808, 122 S.Ct. 1817 (citations omitted) (emphasis added); see also Straw v. Bowen, 866 F.2d 1167, 1169-70 (9th Cir.1989) (in traditional, non-contingency fee analysis, the court multiplies reasonable hours expended by the prevailing market rate to arrive at a “lodestar figure”; the court may adjust the lodestar figure by considering the factors identified in Kerr v. Screen Extras Guild, Inc., 526 F.2d 67, 70 (9th Cir.1975), cert. denied, 425 U.S. 951, 96 S.Ct. 1726, 48 L.Ed.2d 195 (1976), to the extent the lodestar figure does not already subsume such factors). Gisbrecht does not instruct precisely how a district court should quantify the “downward adjustment” when the court concludes such an adjustment is “in order.”

Justice Scalia dissented in Gisbrecht, expressing concern that the majority opinion “does nothing whatever to subject [section 406(b) ] fees to anything approximating a uniform rule of law.” Gisbrecht, 535 U.S. at 809, 122 S.Ct. 1817. Justice Scalia’s concern may have been well-founded. To date, there have been 43 reported decisions applying Gisbrecht to section 406(b) fee requests. A survey of these cases reveals considerable divergence and scant evidence of any “uniform rule of law.”

A.

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Bluebook (online)
445 F. Supp. 2d 1166, 2006 U.S. Dist. LEXIS 80532, 2006 WL 2458640, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ellick-v-barnhart-cacd-2006.