Rice v. Astrue

831 F. Supp. 2d 971, 2011 WL 6122275, 2011 U.S. Dist. LEXIS 141558
CourtDistrict Court, N.D. Texas
DecidedDecember 7, 2011
DocketNo. 4:08-CV-354-A
StatusPublished
Cited by5 cases

This text of 831 F. Supp. 2d 971 (Rice v. Astrue) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rice v. Astrue, 831 F. Supp. 2d 971, 2011 WL 6122275, 2011 U.S. Dist. LEXIS 141558 (N.D. Tex. 2011).

Opinion

MEMORANDUM OPINION and ORDER

JOHN McBRYDE, District Judge.

Before the court for decision is the petition of Ronald D. Honig (“Honig”), the attorney for Evelyn D. Rice (“Rice”), the plaintiff in the above-captioned action, to obtain approval of a fee for representing Rice in this action (sometimes referred to as “§ 406(b) petition”). After having considered such petition, the response thereto of defendant, Michael J. Astrue, Commissioner, Social Security Administration (“Commissioner”), Honig’s reply, and the other pertinent parts of the record, the court has concluded that the request made by Honig’s petition should be denied.

I.

Background

This action was initiated by a complaint filed May 29, 2008, by Honig on behalf of Rice pursuant to the authority of 42 U.S.C. § 405(g), complaining of the decision of Commissioner denying the application of Rice for disability benefits under the Social Security Act, as amended.1 The case was referred to the United States Magistrate Judge for proposed findings and conclusions and recommendation. The magistrate judge ordered that the case be treated as an appeal.

On October 24, 2008, Rice, acting through Honig, filed her brief with the magistrate judge, stating her reasons as to why the Commissioner’s decision should be [974]*974reversed. Rather than file a responsive brief, Commissioner filed on January 16, 2009, a motion asking the court to remand the case to defendant pursuant to the fourth sentence of 42 U.S.C. § 405(g).

On February 18, 2009, the magistrate judge issued his proposed findings and conclusions and his recommendation that the case be remanded as requested by Commissioner’s motion. On March 13, 2009, the court signed an order accepting the magistrate judge’s proposed findings and conclusions and the recommendation of the magistrate judge. A final judgment reversing Commissioner’s denial of benefits and remanding the case to Commissioner pursuant to the fourth sentence of § 405(g) was entered on March 17, 2009.

On April 16, 2009, Honig filed in this case a document titled “Petition and Brief for Award of Attorney Fees, Court Costs and Expenses Under the Equal Access to Justice Act” by which he requested payment to him under the Equal Access to Justice Act, 28 U.S.C. § 2412(d), (“EAJA”) of a fee of $2,853.87 for representing Rice in this court, plus court costs and expenses of $360.60. Honig’s request was based on 16.95 hours of lawyer time (15.95 of which he alleged he devoted to prosecution of Rice’s claim in this court and one hour devoted to preparation of his petition for a fee award) calculated at the rate of $168.37 per hour. On May 5, 2009, Commissioner responded to Honig’s EAJA petition by stating that he had no objection to the requested $3,214.47 payment. By order signed May 13, 2009, the court granted Honig’s petition, but provided in the order as follows:

Recognizing that Honig may receive out of Rice’s Social Security benefits attorney’s fees at the administrative level, or in another judicial proceeding, pursuant to 42 U.S.C. § 406 and that the “purpose of EAJA is to reimburse the claimant for fees paid out of the claimant’s benefits ...,” Kopulos v. Barnhart, 318 F.Supp.2d 657, 666 (N.D.Ill.2004), the court concludes that, in the event that Honig receives fee awards under § 406 for work performed on Rice’s claim, regardless of whether such awards are awarded at the administrative or judicial level, Honig shall promptly pay to Rice an amount equal to this $2,853.87 fee award or the amount of the additional fee awards if less than $2,853.87.

May 13, 2009 Order at 2. Honig appealed to the United States Court of Appeals for the Fifth Circuit from this court’s ruling that Honig pay the EAJA award to Rice in the event he were later to succeed in recovering out of Rice’s benefits attorney’s fees equal to or in excess of the EAJA award. The Fifth Circuit held that the offset ruling in the order was beyond this court’s discretion, and reversed that ruling. Rice v. Astrue, 609 F.3d 831, 839 (5th Cir.2010).

In the meanwhile, administrative proceedings on Rice’s disability claim recommenced. On April 8, 2010, Rice and Honig were given notice by Commissioner that the new Administrative Law Judge had made a decision fully favorable to Rice. On May 8, 2010, Rice and Honig were notified by Commissioner that Rice was awarded past-due Social Security disability benefits of $83,129.00, and that $20,782.13 of those benefits was withheld by Commissioner for use in payment of fees to Honig if the Commissioner was called upon to pay a fee.

In February 2011, Honig had Rice join him in a petition to the Social Security Administration to obtain approval for a fee of $10,000.00 for Honig’s representation of Rice before the Social Security Administration, to be paid to Honig out of Rice’s recently awarded past-due benefits. The [975]*975itemization Honig submitted in support of his fee petition showed that Honig devoted 9.50 hours to the work he did at the administrative level.2 On May 11, 2011, Commissioner authorized Honig to charge and collect a fee in the amount of $7,000.00 for services he provided to Rice for proceedings before the Social Security Administration. The $7,000.00 fee award, which amounts to $965.52 per hour, was paid by Commissioner to Honig out of the $20,782.13 Commissioner withheld from Rice’s disability benefits.3

By letter of June 18, 2011, Commissioner informed Rice and Honig that the $13,782.13 balance of the $20,782.13 withheld from her disability benefits was being paid to her. When Honig discussed that matter with Rice on June 22, 2011, she told Honig that she already had put the money in her bank account, to which he responded that if the court approves an attorney fee, “she will have to pay it directly.” Pet’r’s Resp. to Nov. 1, 2011, Order, Ex. 1, 3rd p. Honig’s currently pending § 406(b) petition was filed the next day.

II.

The Now Pending Petition of Honig, Commissioner’s Response Thereto, and Honig’s Reply

On June 23, 2011, Honig filed the currently pending § 406(b) petition, titled “Petition to Obtain Approval of a Fee for Representing a Claimant Under the Social Security Act.” Honig seeks court approval of a $13,782.13 fee payment to him out of Rice’s Social Security benefits for 15.95 hours of service he rendered to Rice in this action before the March 17, 2009, judgment of reversal and remand. Those 15.95 hours are the same 15.95 hours included in the 16.95 hours of legal services for which Honig was awarded a fee payment under the EAJA by the court’s May 13, 2009 order.

Once the $7,000.00 fee award made by Commissioner to Honig out of Rice’s benefits is deducted from the $20,782.13 of benefits withheld by Commissioner for payment of lawyer’s fee, there was a balance of $13,782.13. That is the amount Honig seeks by his petition to recover as attorney’s fee for representing Rice in this [976]

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Cite This Page — Counsel Stack

Bluebook (online)
831 F. Supp. 2d 971, 2011 WL 6122275, 2011 U.S. Dist. LEXIS 141558, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rice-v-astrue-txnd-2011.