Ott v. Apfel

994 F. Supp. 1318, 1998 WL 55019
District Court, D. Kansas·Decided January 9, 1998·No. Civil Action 94-4235-DES·Published·Cited by 2 cases

Opinion

MEMORANDUM AND ORDER

SAFFELS, District Judge.

This matter is before the court oh motion by plaintiffs counsel for a determination and award of attorney fees.pursuant to 42 U.S.C. § 406(b)(1) (Doc. 44).

I. BACKGROUND

On March 25, 1992, plaintiff filed an application for a period of disability and disability insurance benefits under Title II of the Social Security Act, 42 U.S.C. § 401 et seq. Plaintiff alleged that he became unable to work because of his disabling condition on December 31, 1988. The Social Security Commissioner (“Commissioner”) denied plaintiffs, claim on May 27,1992, stating that plaintiffs post-traumatic stress disorder and depression did not limit his ability to work. Plaintiff filed a request for reconsideration on July 28, 1992. The Commissioner denied plaintiffs request on September 23, 1992, finding that plaintiffs psychological problems were not disabling prior to plaintiffs date late insured of December 31,' 1989.

On January 18, 1993, plaintiff requested a hearing by an administrative law judge (“ALJ”). The hearing was set for September 7, 1993. Plaintiffs counsel, by letter dated August 11, 1993, requested that the ALJ have a medical advisor present at plaintiffs hearing. The ALJ denied counsel’s request, and plaintiffs hearing was held on September 7,1993, without the presence of a medical advisor.

In a decision dated December 23,1993, the ALJ determined that plaintiff is not’ entitled to a period of disability or disability insurance benefits, because plaintiff did not become disabled until on or about February 1, 1992, after his date last insured. On February 16, 1994, plaintiff filed a réquest for review of the ALJ’s decision. The Appeals Council denied plaintiffs request on October 5,1994.

Plaintiff sought judicial review and, on September 29, 1995, the district court issued an order reversing and remanding the case *1320 for determination by the AL J, with the assistance of a medical advisor, of the date of onset of plaintiffs disability. Plaintiff subsequently received a favorable decision from the Commissioner by way of an AL J decision dated December 24, 1996. The decision granted plaintiff entitlement to a period of disability and disability insurance benefits and awarded plaintiff $45,476.80 in past-due benefits.

II. DISCUSSION

Plaintiffs attorney has moved for an award of attorney’s fees pursuant to 42 U.S.C. § 406(b)(1). Plaintiffs attorney alleges he spent 36.25 hours in court-related services and requests a fee of $7,369.20, or twenty-five percent of plaintiffs past-due benefit award less $4000 awarded under 42 U.S.C. § 406(a). The Commissioner objects to plaintiffs request for fees. Although the Commissioner does not contest the number of hours spent by plaintiffs attorney, he argues that a fee of $7,369.20 is unreasonable because it would result in a billing rate of $203.00 per hour. Plaintiffs attorney argues that attorney fees under 42 U.S.C. § 406(b)(1)(A) should be controlled primarily by the freely-negotiated contingency fee contract between a social security claimant and his attorney. The Commissioner contends that the court is not bound by the contingency fee determined pursuant to a contingency fee contract and that the court should use the “lodestar” method to calculate attorney’s fees under § 406(b)(1)(A).

Section 406(b)(1)(A) provides:

(1)(A) Whenever a court renders a judgment favorable to a claimant under this subchapter who was represented before the court by an attorney, the court may determine and 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, and the Commissioner of Social Security may, notwithstanding the provisions of. section 405(i) of this title, certify the amount of such fee for payment to such attorney out of, and not in addition to, the amount of such past-due benefits. In case of any such judgment, no other fee may be payable or certified for payment for such representation except as provided in this paragraph.
(2) Any attorney who charges, demands, receives, or collects for services rendered in connection with proceedings before a court to which paragraph (1) of this subsection is applicable any amount in excess of that allowed by the court thereunder shall be guilty of a misdemeanor and upon conviction thereof shall be subject to a fine of not more than $500, or imprisonment for not more than one year, or both.

42 U.S.C. § 406(b). “This statute places the inescapable burden on the Court to determine and allow a reasonable attorney fee.” Spodnick v. Chater, 1997 WL 104940, *2 (N.D.Okla.1997) (citing Krig v. Sullivan, 143 F.R.D. 270, 271 (N.D.Fla.1992)).

The court disagrees with plaintiff’s attorney’s implication that a fee of twenty-five percent of the plaintiffs recovery of past-due benefits' is “per se reasonable” under the statute. See Hubbard v. Shalala, 12 F.3d 946 (10th Cir.1993). Although 42 U.S.C. § 406(b)(1) provides that a court may allow attorney’s fees “not in excess of 25 percent of the total of the past-due benefits to which the claimant is entitled,” this language in no way suggests the per se reasonableness of a contingency fee for twenty-five percent of the plaintiffs recovery of past-due benefits. Rather, it serves as a limit on the amount of fees an attorney can contract to receive from a social security claimant. See Cotter v. Bowen, 879 F.2d 359, 360 (8th Cir. 1989). “Section 406(b) authorizes the Court to ‘determine’ and ‘allow’ a ‘reasonable’ attorney fee, not approve an agreed upon fee.” Spodnick, 1997 WL 104940, *5 (N.D.Okla. 1997). Accordingly, such fees “remain subject to court approval even where, as in this case, the client expresses approval and satisfaction with the requested fee.” Id.

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Ott v. Apfel, 994 F. Supp. 1318, 1998 WL 55019 (D. Kan. 1998).

994 F. Supp. 1318 (Ott v. Apfel) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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