Gossett v. Social Security Administration, Commissioner

CourtDistrict Court, N.D. Alabama
DecidedJune 23, 2020
Docket4:14-cv-01696
StatusUnknown

This text of Gossett v. Social Security Administration, Commissioner (Gossett v. Social Security Administration, Commissioner) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gossett v. Social Security Administration, Commissioner, (N.D. Ala. 2020).

Opinion

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ALABAMA MIDDLE DIVISION LAURA GOSSETT, ) ) Claimant, ) ) vs. ) Case No. 4:14-CV-1696-CLS ) ANDREW SAUL, Commissioner, ) Social Security Administration, ) ) Defendant. ) MEMORANDUM OPINION I. INTRODUCTION The Eleventh Circuit Court of Appeals issued a formal mandate on June 22, 2020: the date on which its decision in Gossett v. Social Security Administration, Commissioner, No. 19-13922, 2020 WL 2043429 (11th Cir. April 28, 2020) (per curiam), became final. See doc. no. 43 (Circuit Mandate); Fed. R. App. P. 41(a).1 Upon issuance of the mandate, the jurisdiction of the appellate court terminated, and this court reacquired the authority to implement the mandate. The following memorandum opinion addresses the issues directed by the Circuit, as well as two

1 A “mandate” is the device by which an appellate court closes an appeal and transfers jurisdiction to another court. Federal Rule of Appellate Procedure 41 specifies that a mandate must issue seven days after expiration of the time to file a petition for rehearing expires, or seven days after entry of an order denying a timely petition for panel rehearing, rehearing en banc, or motion for stay of mandate, whichever is later. However, the Court of Appeals may shorten or extend those times. Fed. R. App. P. 1(b). motions filed by claimant’s attorney prior to the issuance of the mandate and, therefore, this court’s reacquisition of jurisdiction to address those motions.

II. PRIOR PROCEEDINGS This court entered an order on August 8, 2019, granting the motion and amended motion of claimant’s counsel for approval of an attorney’s fee,2 but only in

part: that is, the court denied counsel’s requested fee of $78,280.63 (an amount that, based upon the fifteen hours of time that claimant’s counsel had devoted to the case, represented an hourly rate of $5,218.71),3 and instead awarded a fee of $5,218.80 (a

sum of money that amounted to an hourly rate of $380.12: twice counsel’s typical

2 See doc. no. 18 (Motion for Approval of Attorney Fee Pursuant to 42 U.S.C. § 406(b)); doc. no. 20 (Amended Motion for Approval of Attorney Fee Pursuant to 42 U.S.C. § 406(b)). 3 The requested fee of $78,280.63 represented 25% of the total past-due benefits awarded to claimant and her three dependents, less the amount previously recovered by counsel under the Equal Access to Justice Act. See Hopkins v. Cohen, 390 U.S. 530 (1968) (holding, inter alia, that “past- due benefits” include not only the benefits due the claimant, but also those due any dependents of the claimant). When an attorney has rendered services in representing a claimant before the SSA in a claim for Title II benefits, and the SSA has made a favorable decision which resulted in the claimant and the claimant’s family becoming entitled to past- due benefits, a part of the past-due benefits may be certified for direct payment to the attorney as compensation for services. Payment to the attorney is limited to whichever of the following is the smallest: 1. twenty-five percent of the claimant’s and family’s past-due benefits; 2. the amount which the SSA has fixed as a reasonable fee; or 3. the amount of the fee agreed upon between the claimant and the attorney. 2 Harvey L. McCormick, SOCIAL SECURITY CLAIMS AND PROCEDURES § 16:8, at 256 (6th ed. 2009). 2 hourly fee).4 Claimant’s counsel moved for reconsideration;5 this court denied that motion;6 counsel appealed;7 and a panel of the Eleventh Circuit Court of Appeals held

that this court erred in relying upon an out-of-circuit case, Hayes v. Secretary of Health & Human Services, 923 F.2d 418 (6th Cir. 1990), as persuasive authority. Gossett v. Social Security Administration, Commissioner, No. 19-13922, 2020 WL

2043429, at *3 (11th Cir. April 28, 2020) (per curiam). The Sixth Circuit’s opinion in the Hayes case grappled with the question of how to determine when an extraordinarily large fee for a Social Security claimant’s

attorney amounted to a “windfall”: a noun that originally was coined to identify fruit dislodged from a tree by the wind,8 but a word that the law adapted to describe an unexpected and easily-gained benefit, usually in the form of a large profit not caused

by the effort or merits of the recipient.9 When addressing that issue, the Sixth Circuit

4 See doc. no. 23 (Order entered Aug. 8, 2019), at 3-4. 5 See doc. no. 24 (Motion for Reconsideration of Order on Attorney Fee Pursuant to 42 U.S.C. § 406(b)); doc. no. 26 (Agency’s Response to Motion for Reconsideration of Order on Attorney Fee for Claimant’s Counsel); and doc. no. 27 (Reply of Claimant’s Counsel to Agency’s Response). 6 See doc. no. 29 (Memorandum Opinion Addressing Motion for Reconsideration filed by Claimant’s Counsel), and doc. no. 30 (Order Denying Motion). 7 See doc. no. 31 (Notice of Appeal). 8 See, e.g., Webster’s Third New International Dictionary 2619 (2002). 9 Id. at 2620; see also Black’s Law Dictionary 1738 (9th ed. 2009); Oxford English Dictionary, https://www.oed.com/view/Entry/229216?redirectedFrom=windfall#eid (last visited June 11, 2020). 3 principally relied upon a “lodestar” calculation to determine the reasonableness of the fee awarded to the attorney for a Social Security claimant. Among other things, the

opinion observed that a “windfall” can never occur when, in a case where a contingent fee contract exists, the hypothetical hourly rate determined by dividing the number of hours worked for the claimant into the amount of the fee permitted under the contract is less than twice the standard rate for such work in the relevant market. We believe that a multiplier of 2 is appropriate as a floor in light of indications that social security attorneys are successful in approximately 50% of the cases they file in the courts. Without a multiplier, a strict hourly rate limitation would insure that social security attorneys would not, averaged over many cases, be compensated adequately. See, e.g., Kirchoff v. Flynn, 786 F.2d 320, 326 (7th Cir. 1986) (“[w]ithout a floor the introduction of a cap would depress average fees below their expected level in the private market”). Such a result would thwart Congress’s intention to assure social security claimants of good representation. See Rodriquez [v. Bowen], 865 F.2d [739,] 744 [(6th Cir. 1989)] (“[t]he fee approval provision is also designed to assure adequate compensation to the claimant's attorney and as a consequence to encourage attorney representation”). Hayes, 923 F.2d at 422 (alterations in original). The Sixth Circuit stated that the “calculation of a hypothetical hourly rate that is twice the [attorney’s] standard [hourly] rate” provided a “floor, below which a district court has no basis for questioning . . . the reasonableness of the fee.” Id. On the other hand, if the hypothetical hourly rate is above that “floor” — i.e., an amount that is twice the attorney’s standard hourly rate — then the district court should evaluate it for reasonableness using the usual factors. Id.

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Jackson v. Commissioner of Social Security
601 F.3d 1268 (Eleventh Circuit, 2010)
Reeves v. Astrue
526 F.3d 732 (Eleventh Circuit, 2008)
Hopkins v. Cohen
390 U.S. 530 (Supreme Court, 1968)
Hensley v. Eckerhart
461 U.S. 424 (Supreme Court, 1983)
Kay v. Ehrler
499 U.S. 432 (Supreme Court, 1991)
Gisbrecht v. Barnhart
535 U.S. 789 (Supreme Court, 2002)
Anita Kirchoff and William Kirchoff v. Michael Flynn
786 F.2d 320 (Seventh Circuit, 1986)
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Rodriquez v. Bowen
865 F.2d 739 (Sixth Circuit, 1989)

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Gossett v. Social Security Administration, Commissioner, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gossett-v-social-security-administration-commissioner-alnd-2020.