Lamb v. Social Security Administration

Opinion

IN THE UNITED STATES DISTRICT COURT EASTERN DISTRICT OF ARKANSAS NORTHERN DIVISION

CONSEULO LAMB PLAINTIFF

Vv. No. 3:22-cv-210-DPM

SOCIAL SECURITY ADMINISTRATION, Commissioner DEFENDANT

ORDER After the Social Security Administration denied Consuelo Lamb’s application for disability benefits, she turned to Nicholas Coleman, alawyer. They made a contingent-fee agreement: 25% of any past-due benefits owed to Lamb. With Coleman’s help, Lamb sought review in this Court and secured a remand to the ALJ. On remand, the ALJ issued Lamb a fully favorable decision, which included an award of $70,620 in past-due disability benefits. Coleman now seeks an attorney’s fee of $17,655 (25% of $70,620) under 42 U.S.C. § 406(b). The question is whether that fee is reasonable for the services rendered. Kertz v. Colvin, 125 F.4th 1218, 1220-21 (8th Cir. 2025). Under § 406(b), the Court must anchor its reasonableness analysis in the fee yielded by the contingency agreement. Ibid. A reduction may be warranted if Coleman’s representation was substandard, if he was responsible for delay, or if the fee award would be a windfall to him. Gisbrecht v. Barnhart, 535 U.S. 789, 808 (2002).

Coleman has zealously represented Lamb, and the Court sees no delay on his part. But an award of $17,655 is simply too large in comparison to the amount of time he spent on this case — 24.2 hours. Doc. 23-1 at 5. That award would boil down to an hourly rate of $729.55, which is more than double his $350/hour rate for noncontingent-fee cases. Doc. 23-1 at 2. Plus, the scope of Coleman's representation was “strictly limited to federal court review.” Doc. 23-2 at 1. After the case was remanded, Lamb retained a different lawyer, Jerrold Scholtens, to represent her before the ALJ. Doc. 23-3 at 3. Coleman’s efforts here played a big part, but not the only part, in the outcome of Lamb’s case. All material things considered, a 25% reduction is necessary to arrive at a reasonable § 406(b) attorney’s fee of $13,241.25. That fee, as requested, is offset by the $5,591.20 that Coleman has already received in EAJA fees. Doc. 24 at 10. The net § 406(b) attorney’s fee is therefore $7,650.05.

Motion for § 406(b) attorney’s fees, Doc. 23, partly granted and partly denied, as specified. The Commissioner must pay Coleman a net § 406(b) attorney’s fee of $7,650.05 out of Lamb’s past-due benefits in accordance with agency policy.

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So Ordered. Teypnr fp. D.P. Marshall Jr. United States District Judge aq Avenis £2025,

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