Susan E. Allen v. Commissioner of Social Security Administration

District Court, D. Arizona·Decided January 7, 2026·No. 2:22-cv-02154·Unknown

Opinion

1 WO 2 3 4 5

9 Susan E. Allen, No. CV-22-02154-PHX-JAT

10 Plaintiff, ORDER

11 v.

12 Commissioner of Social Security Administration, 13 Defendant. 14 15 Pending before the Court is Plaintiff Susan E. Allen’s application for attorneys’ fees 16 under the Equal Access to Justice Act (“EAJA”). (Doc. 39). Defendant, Acting 17 Commissioner of the Social Security Administration (the “Commissioner”), responded. 18 (Doc. 44). Plaintiff filed a reply. (Doc. 45). The Court now rules. 20 Plaintiff applied for Social Security disability benefits in March 2015. (Doc. 18-6 at 21 3). Plaintiff’s application was denied at the initial stage, upon reconsideration, and by an 22 administrative law judge (“ALJ”) after a hearing. (Doc. 18-4 at 14, 33; Doc. 18-3 at 21). 23 The Social Security Administration (“SSA”) Appeals Council denied Plaintiff’s request for 24 review of the ALJ’s decision. (Doc. 18-3 at 3). Plaintiff filed an action seeking review of 25 the Commissioner’s final decision under 42 U.S.C. § 405(g). (Doc. 1). This Court affirmed 26 the Commissioner’s decision. (Doc. 30). Plaintiff appealed. (Doc. 32). The Ninth Circuit 27 Court of Appeals reversed and remanded. (Doc. 35). 28 2 “Under EAJA, a litigant is entitled to attorney’s fees and costs if: (1) he is the 3 prevailing party; (2) the government fails to show that its position was substantially 4 justified or that special circumstances make an award unjust; and (3) the requested fees and 5 costs are reasonable.” Carbonell v. I.N.S., 429 F.3d 894, 898 (9th Cir. 2005); see also 6 Perez-Arellano v. Smith, 279 F.3d 791, 793 (9th Cir. 2002); 28 U.S.C. § 2412(d)(1)(A). 7 Plaintiff’s counsel requests $32,029.88 in attorneys’ fees plus $1,007.00 in filing 8 fees. (Doc. 45 at 25–26; Doc. 39 at 7). The Commissioner argues that its position was 9 substantially justified, and alternatively that Plaintiff’s requested fees are not reasonable. 10 (Doc. 33 at 2). The Court will discuss each EAJA entitlement prong in turn. 11 A. Prevailing Party 12 The Commissioner does not dispute that Plaintiff is the prevailing party. (See Doc. 13 44 at 2). An applicant for disability benefits becomes a prevailing party for the purposes of 14 the EAJA if the denial of her benefits is reversed and remanded regardless of whether 15 disability benefits are ultimately awarded. Shalala v. Schaefer, 509 U.S. 292, 300–02 16 (1993). Because the denial of Plaintiff’s benefits was reversed and remanded, the Court 17 finds Plaintiff is the prevailing party. As the prevailing party, Plaintiff is entitled to 18 attorneys’ fees unless the Commissioner shows that its position with respect to the issue 19 on which the Court of Appeals based its remand was substantially justified. Flores v. 20 Shalala, 49 F.3d 562, 569 (9th Cir. 2008). 21 B. Substantially Justified 22 The Commissioner argues that Plaintiff is not entitled to EAJA fees because the 23 Commissioner’s position was substantially justified. (Doc. 44 at 2). The Commissioner 24 does not argue that special circumstances exist that would make an award of fees unjust. 25 (See id. at 1–7). 26 In EAJA actions, the government bears the burden of proving that its position was 27 substantially justified. Gonzales v. Free Speech Coalition, 408 F.3d 613, 618 (9th Cir. 28 2005). To be substantially justified, a position must be “justified in substance or in the 1 main—that is, justified to a degree that could satisfy a reasonable person.” Pierce v. 2 Underwood, 487 U.S. 552, 565 (1988) (holding that “substantially justified” means having 3 a reasonable basis both in law and fact). A position can be substantially justified “even 4 though it is not correct” so long as “a reasonable person could think it correct.” Id. at 566 5 n.2. 6 The “position of the United States” includes both its litigating position and the 7 “action or failure to act by the agency upon which the civil action is based.” 28 U.S.C. 8 § 2412(d)(2)(D); Ibrahim v. U.S. Dep’t of Homeland Sec., 912 F.3d 1147, 1168 (9th Cir. 9 2019) (“Thus, the substantial justification test is comprised of two inquiries, one directed 10 toward the government agency’s conduct, and the other toward the government’s 11 attorneys’ conduct during litigation.”). In the social security context, courts look to the 12 ALJ’s decision to determine whether the government’s position in the underlying agency 13 action was substantially justified. Meier v. Colvin, 727 F.3d 867, 870–72 (9th Cir. 2013). 14 When analyzing the government’s litigation position for substantial justification, the 15 Court’s inquiry should be focused on the issue that was the basis for remand and not the 16 merits of Plaintiff’s claim in its entirety or the ultimate disability determination. Flores, 49 17 F.3d at 569; see also Corbin v. Apfel, 149 F.3d 1051, 1052 (9th Cir. 1998) (“The 18 government’s position must be substantially justified at each stage of the proceedings.” 19 (citation and quotation marks omitted)). 20 Here, the Ninth Circuit Court of Appeals found that in formulating Plaintiff’s 21 residual functional capacity, the ALJ erred in rejecting Plaintiff’s pain testimony and in 22 affording no weight to the medical opinion of Plaintiff’s treating physician. (Doc. 35-1 at 23 3–4). The Court of Appeals explained that substantial evidence does not support the ALJ’s 24 finding that this evidence was inconsistent with the record. (Id.). 25 In addition to the ALJ’s finding that Plaintiff’s testimony was inconsistent with the 26 medical record, the ALJ also considered Plaintiff’s work history in assessing the credibility 27 of Plaintiff’s testimony—specifically, that Plaintiff “stopped working because she was laid 28 off on or about the alleged onset date, rather than due to her pain complaints and maladies.” 1 (Doc. 18-3 at 32). Although the Court of Appeals specifically found that “substantial 2 evidence does not support the ALJ’s rejection of [Plaintiff’s] testimony based on [the] 3 purported inconsistencies” identified by the ALJ, the Court of Appeals did not address the 4 ALJ’s findings regarding Plaintiff’s work history. (See Doc. 44 at 5). It is thus unclear 5 whether the Court of Appeals left open or foreclosed reliance on Plaintiff’s work history 6 as a reason to discredit Plaintiff’s testimony. Further, the Court of Appeals reversed and 7 remanded “for further proceedings” but did not specify whether it was remanding for an 8 immediate award of benefits or for further development of the record. (Doc. 35-1 at 2). 9 Because this confusion lies at the heart of the parties’ dispute about whether the 10 Commissioner’s position was substantially justified, this Court must attempt to ascertain 11 what the Court of Appeals intended when it remanded this case.

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