Pasiak v. Commissioner of Social Security Administration

CourtDistrict Court, E.D. Michigan
DecidedJuly 22, 2021
Docket2:17-cv-11401
StatusUnknown

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

Bluebook
Pasiak v. Commissioner of Social Security Administration, (E.D. Mich. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

NICHOLAS BRODY PASIAK,

Plaintiff, Case Number 17-11401 Honorable David M. Lawson v.

COMMISSIONER OF SOCIAL SECURITY,

Defendant. ______________________________________/

OPINION AND ORDER GRANTING IN PART AND DENYING IN PART MOTION FOR ATTORNEY’S FEES

The plaintiff in this Social Security disability case prevailed in the court of appeals and later after remand before the administrative agency. Counsel for the plaintiff has filed a motion for attorney’s fees under the Equal Access to Justice Act (EAJA), 28 U.S.C. § 2412, and section 206(b) of the Social Security Act, 42 U.S.C. § 406(b). His motion was filed well after the statutory and rule-imposed deadlines, and he has not offered good reasons to relax those time limits under the EAJA. The request under section 406(b) is for approval of fees under a contingent fee agreement with the plaintiff. The Court has broader discretion to entertain that tardy motion. However, the contingent fee award, which comes from the plaintiff’s share of the recovery of past- due benefits, normally would be offset by fees paid by the government under the EAJA, which the plaintiff must forego because of counsel’s neglect. The Court will approve the fee request under section 406(b) but reduce the award to account for the lost offset. I. The plaintiff filed his complaint on May 5, 2017, seeking review of the Commissioner’s decision denying the plaintiff’s claims for children’s insurance benefits under Title II of the Social Security Act. The case was referred to a magistrate judge who filed a report recommending that the plaintiff’s motion for summary judgment be denied, the defendant’s motion for summary judgment be granted, and the findings of the Commissioner be affirmed. This Court’s predecessor, the Honorable Avern Cohn, adopted the report and recommendation and entered judgment in favor of the Commissioner.

The plaintiff appealed to the Sixth Circuit and prevailed. On December 9, 2019, the court of appeals filed an opinion reversing this Court’s judgment and remanded the case “to the ALJ [administrative law judge] for further proceedings,” finding that “the record raises a ‘substantial question’ as to whether Pasiak could qualify as disabled under Listing 3.04(C).” Pasiak v. Comm’r of Soc. Sec., 800 F. App’x 301, 309 (6th Cir. 2019). The Sixth Circuit issued a mandate on January 31, 2020. On March 8, 2020, the Appeals Counsel entered an order remanding the case to the ALJ, citing “the Mandate of the U.S. Court of Appeals for the Sixth Circuit,” and erroneously indicating that “the U.S. District Court for the Eastern District of Michigan . . . has remanded this case to the Commissioner of Social Security for further administrative proceedings.” Appeals

Counsel Order, ECF No. 35, PageID.1433. After the case was remanded, the plaintiff prevailed at a new hearing before the ALJ, and he was awarded $70,374.00 in past-due benefits. The Agency withheld $17,593.50 from that amount to account for a possible fee request. Upon receipt of the favorable decision on December 4, 2020, plaintiff’s counsel “noticed that the ALJ attached a Notice that disapproved the fee agreement filed with the [Agency] by Counsel in September 2015.” Fee Mot., ECF No. 35, PageID.1336. In 2015, the plaintiff and his counsel had signed a contingent fee agreement with terms for a fee of 25 percent of the past-due benefits or $6,000, whichever is less, with the caveat that counsel could ask for a higher fee on review if an appeal to federal court and an additional hearing were required. Plaintiff’s counsel filed a petition (Form 1560) for authorization to charge and collect a fee with the ALJ under 42 U.S.C. 406(a) on December 22, 2020. Apparently, counsel was unaware of the distinction between the fees that could be recovered for work done at the administrative level and fees for work done in court. Compare 42 U.S.C. § 406(a) (titled “fees for representation before Commissioner”) with 42 U.S.C. § 406(b) (titled “Fees for representation

before court”). The ALJ’s legal assistant informed counsel that he would have to submit an amended petition and separately identify his work before the Agency and federal courts. Counsel filed the amended petition with the Agency on February 8, 2021, requesting authorization to charge and collect a fee of $15,500 based on work before the Agency at a rate of $250 per hour. The ALJ responded on February 11, 2021, indicating that he forwarded the petition to the regional chief administrative law judge for consideration because the recommended fee was over $10,000; authorization for that request remains pending. On March 12, 20201, counsel filed a motion in this Court for attorney’s fees under the Social Security Act, 42 U.S.C. § 406(b), in the amount of $17,593.50 (reflecting 25 percent of the

past-due benefits of $70,374), and for an award of fees under the Equal Access to Justice Act, 28 U.S.C. § 2412, in the amount of $12,840.25 (based on 71.65 hours of work at a rate of $125 per hour, with an additional charge of $3,875 for counsel’s effort in preparing the instant motion (31 hours)). The government filed a response in opposition, contending that counsel’s motion is untimely. The case was then reassigned to the undersigned on April 9, 2021. II. The fee requests presented in the motion are limited to the work performed in court. Culbertson v. Berryhill, --- U.S. ---, 139 S. Ct. 517, 520 (2019) (noting that “the Social Security Act ‘discretely’ addresses attorney’s fees for the administrative and judicial-review stages: ‘§ 406(a) governs fees for representation in administrative proceedings; § 406(b) controls fees for representation in court’”) (quoting Gisbrecht v. Barnhart, 535 U.S. 789, 794 (2002)). The motion further contains separate requests for fees from different sources. The plaintiff asks for fees from the government under the EAJA; plaintiff’s counsel asks for approval of a contingent fee under 42 U.S.C. § 406(b), which will come from the plaintiff’s share of the past-due benefits awarded.

A. A request for a fee under the EAJA must be filed “within thirty days of final judgment in the action.” 28 U.S.C. § 2412(d)(1)(B). Plaintiff’s counsel anticipated a timeliness problem with the fee motion and has offered several creative — and unpersuasive — reasons why the delay should not present an obstacle to recovery. 1. He begins by contending that his request for attorney fees under the EAJA is timely because no formal, separate judgment has ever been entered on the docket; thus, the 30-day clock never started to run. It is true that neither the court of appeals nor this Court ever entered a separate

judgment remanding the case to the Agency. But the court of appeals did file an opinion on December 9, 2019, which expressly reversed and remanded the case to the ALJ for further proceedings. Pasiak, 800 F. App’x at 309.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Shalala v. Schaefer
509 U.S. 292 (Supreme Court, 1993)
Gisbrecht v. Barnhart
535 U.S. 789 (Supreme Court, 2002)
Hall v. Warden, Lebanon Correctional Institution
662 F.3d 745 (Sixth Circuit, 2011)
United States v. Jim Edd Baker
197 F.3d 211 (Sixth Circuit, 1999)
Xuan Li Zheng v. John Ashcroft, Attorney General
383 F.3d 919 (Ninth Circuit, 2004)
Elbridge Cook v. Commissioner of Social Security
480 F.3d 432 (Sixth Circuit, 2007)
Patrick Lasley v. Comm'r of Social Security
771 F.3d 308 (Sixth Circuit, 2014)
Cheryl Minor v. Comm'r of Social Security
826 F.3d 878 (Sixth Circuit, 2016)
Culbertson v. Berryhill
586 U.S. 53 (Supreme Court, 2019)
Holland v. Florida
177 L. Ed. 2d 130 (Supreme Court, 2010)
Harrison v. I.M.S.
56 F. App'x 682 (Sixth Circuit, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
Pasiak v. Commissioner of Social Security Administration, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pasiak-v-commissioner-of-social-security-administration-mied-2021.