McGuire v. O'Malley

U.S. District Court, District of Minnesota

McGuire v. O'Malley

Trial Court Opinion

                   UNITED STATES DISTRICT COURT                          
                      DISTRICT OF MINNESOTA                              


Jessyca L.M.,                                                            
                                           Case No. 23-cv-3239 ECW       
          Plaintiff,                                                     

v.                                          ORDER                        

Martin J. O’Malley, Commissioner of                                      
Social Security,                                                         

          Defendant.                                                     


    This matter came before the Court on Plaintiff’s Motion for Award of Attorney’s 
Fees Pursuant to the Equal Access to Justice Act, 
28 U.S.C. § 2412
 (Dkt. 16); and the 
parties’ joint Stipulation for EAJA Fees (Dkt. 23).  The parties have stipulated to an 
award of $8,100 in attorney’s fees and no costs under the Equal Access to Justice Act 
(“EAJA”), 
28 U.S.C. § 2412
.  For the reasons discussed below, the Stipulation and 
Plaintiff’s Motion (to the extent consistent with the Stipulation), are granted.   
                      I.   BACKGROUND                                    
    On October 20, 2023, Plaintiff filed this case seeking judicial review of a final 
decision by Defendant denying her application for Supplemental Security Income and 
Disability Insurance Benefits.  (Dkt. 1.)  On February 20, 2024, this Court remanded this 
case back to the Commissioner pursuant to sentence four of 
42 U.S.C. § 405
(g) based on 
the joint stipulation of the parties.  (Dkt. 12.)                         
                        II.  ANALYSIS                                    
A.   Legal Standard                                                       
    “It is the general rule in the United States that in the absence of legislation 
providing otherwise, litigants must pay their own attorney’s fees.”  Christianburg 

Garment Co. v. EEOC, 
434 U.S. 412, 415
 (1978) (citation omitted).  Congress has 
provided for limited exceptions to the general rule.  
Id.
  The EAJA is one of those 
exceptions.  The EAJA provides that “a court shall award to a prevailing party other than 
the United States fees and other expenses . . . incurred by that party in any civil action . . . 
including proceedings for judicial review of agency action, brought by or against the 

United States in any court having jurisdiction of the action, unless the court finds that the 
position of the United States was substantially justified or that special circumstances 
make an award unjust.”  
28 U.S.C. § 2412
(d)(1)(A).                        
    Under the EAJA:                                                      
    [A] party seeking an award of fees and other expenses shall, within thirty 
    days of final judgment in the action, submit to the court an application for 
    fees and other expenses which shows that the party is a prevailing party and 
    is eligible to receive an award under this subsection, and the amount sought, 
    including  an  itemized  statement  from  any  attorney  or  expert  witness 
    representing or appearing in [sic] behalf of the party stating the actual time 
    expended and the rate at which fees and other expenses were computed.  The 
    party  shall  also  allege  that  the  position  of  the  United  States  was  not 
    substantially justified.  Whether or not the position of the United States was 
    substantially  justified  shall  be  determined  on  the  basis  of  the  record 
    (including the record with respect to the action or failure to act by the agency 
    upon which the civil action is based) which is made in the civil action for 
    which fees and other expenses are sought.                            

28 U.S.C. § 2412
(d)(1)(B).  Any attorney’s fees awarded under the EAJA must be 
reasonable.  
28 U.S.C. § 2412
(b).                                         
    Attorney’s fees are not to be awarded under the EAJA merely because the 
Government lost the case.  See Welter v. Sullivan, 
941 F.2d 674, 676
 (8th Cir. 1991) 
(citations omitted).  However, Plaintiff is entitled to fees unless the Government’s 
position was substantially justified.  See Lauer v. Barnhart, 
321 F.3d 762, 764
 (8th Cir. 

2003).  The Government bears the burden of proving substantial justification for its 
position in the litigation.  
Id.
  Here, the Government has not argued that its position was 
substantially justified, and has come to an agreement with Plaintiff as to the amount of 
the award.  (See Dkt. 23.)  Although Defendant does not object to the amount of fees, the 
Court must still examine it for reasonableness.  See 
28 U.S.C. § 2412
(d)(2)(A) (stating 

“fees and other expenses” includes, inter alia, “reasonable attorney fees.”). 
B.   Reasonableness of Fees and Costs                                     
    Plaintiff requested in her Motion attorney’s fees at an hourly rate of $230 for 
36.55 hours of work performed in 2023 through 2024, for a total of $8,406.50.  (Dkt. 20 
¶¶ 7, 9.)  Plaintiff’s counsel asserts that the billing rate of $230 is consistent with the 

increase of the cost of living since March 29, 1996.  (Id. ¶ 9.)          
    The EAJA provides that “attorney fees shall not be awarded in excess of $125 per 
hour unless the court determines that an increase in the cost of living or a special factor 
. . . justifies a higher fee.”  
28 U.S.C. § 2412
(d)(2)(A)(ii).  The Eighth Circuit has 
concluded that this language means “that ‘the district court may, upon proper proof, 

increase the . . . rate for attorney’s fees to reflect the increase in the cost of living . . . .’”  
Johnson v. Sullivan, 
919 F.2d 503, 504
 (8th Cir. 1990) (quoting Kelly v. Bowen, 
862 F.2d 1333, 1336
 (8th Cir. 1988) (citations omitted)).  The CPI constitutes “‘proper proof’ of 
the increased cost of living since the EAJA’s enactment and justifies an award of 
attorney’s fees greater than [that provided for by the EAJA].”  
Id.
 (citations omitted); see 
also Kelly, 
862 F.2d at 1336
 (citations omitted).  The cost of living adjustment is 
calculated by multiplying the standard EAJA rate by the CPI for urban consumers for 

each year attorney’s fees are sought, and then dividing the product by the CPI in the 
month that the cap was imposed, in this case 155.7 for March of 1996, the year the new 
statutory cap of $125 was put into place.  See Knudson v. Barnhart, 
360 F. Supp. 2d 963, 974
 (N.D. Iowa 2004).  The hourly rate of $222.13 is largely consistent with application 
of the Urban CPI in October 2023, when counsel began work on Plaintiff’s behalf: $125 

(statutory rate) × 307.671 (October 2023 CPI-U) / 155.7 = $247.00.  See   
https://bls.gov/cpi/tables/supplemental-files/historical-cpi-u-202403.pdf (last visited May 
6, 2024).                                                                 
    The Court has reviewed all itemized time records for the work performed in this 
case and finds that the 36.55 hours billed, and the legal work performed, are not 

excessive or unreasonable.  Courts routinely grant motions requesting reimbursement for 
a similar number of hours.  See, e.g., Dianna L. B. v. Saul, No. 19-CV-2561 (TNL), 
2021 WL 733995
, at *2 (D. Minn. Feb. 25, 2021) (collecting cases) (“Awards just outside of 
[20 to 40 hours] are also not uncommon.”).                                
C.   Conclusion                                                           

    Based on the above, and the parties’ Stipulation, the Court will award the 
following reasonable attorney’s fees to Plaintiff:  $8,100 in attorney’s fees and no costs. 
                         III.  ORDER                                     
    Based on the above, and on the files, records, and proceedings herein, IT IS 
ORDERED THAT:                                                             
    1.   Plaintiff’s Motion for Award of Attorney's Fees Pursuant to the Equal 

Access to Justice Act, 
28 U.S.C. Sec. 2412
 (Dkt. 16); and the parties’ joint Stipulation for 
EAJA Fees (Dkt. 23) are GRANTED as follows: Plaintiff is AWARDED $8,100.00 for 
reasonable attorney’s fees under the EAJA.                                
    2.   In accordance with the EAJA and Astrue v. Ratliff, 
560 U.S. 586
 (2010), the 
EAJA award is payable to Plaintiff as the litigant and subject to offset to satisfy any pre-

existing debts that the litigant may owe to the United States.            
    3.   Defendant shall send the EAJA payment in Plaintiff’s name, after any 
required offset, to Plaintiff’s counsel at the office of Livgard & Lloyd PLLP. 

DATED: May 7, 2024                      s/ Elizabeth Cowan Wright         
                                       ELIZABETH COWAN WRIGHT            
                                       United States Magistrate Judge    

Trial Court Opinion

                   UNITED STATES DISTRICT COURT                          
                      DISTRICT OF MINNESOTA                              


Jessyca L.M.,                                                            
                                           Case No. 23-cv-3239 ECW       
          Plaintiff,                                                     

v.                                          ORDER                        

Martin J. O’Malley, Commissioner of                                      
Social Security,                                                         

          Defendant.                                                     


    This matter came before the Court on Plaintiff’s Motion for Award of Attorney’s 
Fees Pursuant to the Equal Access to Justice Act, 
28 U.S.C. § 2412
 (Dkt. 16); and the 
parties’ joint Stipulation for EAJA Fees (Dkt. 23).  The parties have stipulated to an 
award of $8,100 in attorney’s fees and no costs under the Equal Access to Justice Act 
(“EAJA”), 
28 U.S.C. § 2412
.  For the reasons discussed below, the Stipulation and 
Plaintiff’s Motion (to the extent consistent with the Stipulation), are granted.   
                      I.   BACKGROUND                                    
    On October 20, 2023, Plaintiff filed this case seeking judicial review of a final 
decision by Defendant denying her application for Supplemental Security Income and 
Disability Insurance Benefits.  (Dkt. 1.)  On February 20, 2024, this Court remanded this 
case back to the Commissioner pursuant to sentence four of 
42 U.S.C. § 405
(g) based on 
the joint stipulation of the parties.  (Dkt. 12.)                         
                        II.  ANALYSIS                                    
A.   Legal Standard                                                       
    “It is the general rule in the United States that in the absence of legislation 
providing otherwise, litigants must pay their own attorney’s fees.”  Christianburg 

Garment Co. v. EEOC, 
434 U.S. 412, 415
 (1978) (citation omitted).  Congress has 
provided for limited exceptions to the general rule.  
Id.
  The EAJA is one of those 
exceptions.  The EAJA provides that “a court shall award to a prevailing party other than 
the United States fees and other expenses . . . incurred by that party in any civil action . . . 
including proceedings for judicial review of agency action, brought by or against the 

United States in any court having jurisdiction of the action, unless the court finds that the 
position of the United States was substantially justified or that special circumstances 
make an award unjust.”  
28 U.S.C. § 2412
(d)(1)(A).                        
    Under the EAJA:                                                      
    [A] party seeking an award of fees and other expenses shall, within thirty 
    days of final judgment in the action, submit to the court an application for 
    fees and other expenses which shows that the party is a prevailing party and 
    is eligible to receive an award under this subsection, and the amount sought, 
    including  an  itemized  statement  from  any  attorney  or  expert  witness 
    representing or appearing in [sic] behalf of the party stating the actual time 
    expended and the rate at which fees and other expenses were computed.  The 
    party  shall  also  allege  that  the  position  of  the  United  States  was  not 
    substantially justified.  Whether or not the position of the United States was 
    substantially  justified  shall  be  determined  on  the  basis  of  the  record 
    (including the record with respect to the action or failure to act by the agency 
    upon which the civil action is based) which is made in the civil action for 
    which fees and other expenses are sought.                            

28 U.S.C. § 2412
(d)(1)(B).  Any attorney’s fees awarded under the EAJA must be 
reasonable.  
28 U.S.C. § 2412
(b).                                         
    Attorney’s fees are not to be awarded under the EAJA merely because the 
Government lost the case.  See Welter v. Sullivan, 
941 F.2d 674, 676
 (8th Cir. 1991) 
(citations omitted).  However, Plaintiff is entitled to fees unless the Government’s 
position was substantially justified.  See Lauer v. Barnhart, 
321 F.3d 762, 764
 (8th Cir. 

2003).  The Government bears the burden of proving substantial justification for its 
position in the litigation.  
Id.
  Here, the Government has not argued that its position was 
substantially justified, and has come to an agreement with Plaintiff as to the amount of 
the award.  (See Dkt. 23.)  Although Defendant does not object to the amount of fees, the 
Court must still examine it for reasonableness.  See 
28 U.S.C. § 2412
(d)(2)(A) (stating 

“fees and other expenses” includes, inter alia, “reasonable attorney fees.”). 
B.   Reasonableness of Fees and Costs                                     
    Plaintiff requested in her Motion attorney’s fees at an hourly rate of $230 for 
36.55 hours of work performed in 2023 through 2024, for a total of $8,406.50.  (Dkt. 20 
¶¶ 7, 9.)  Plaintiff’s counsel asserts that the billing rate of $230 is consistent with the 

increase of the cost of living since March 29, 1996.  (Id. ¶ 9.)          
    The EAJA provides that “attorney fees shall not be awarded in excess of $125 per 
hour unless the court determines that an increase in the cost of living or a special factor 
. . . justifies a higher fee.”  
28 U.S.C. § 2412
(d)(2)(A)(ii).  The Eighth Circuit has 
concluded that this language means “that ‘the district court may, upon proper proof, 

increase the . . . rate for attorney’s fees to reflect the increase in the cost of living . . . .’”  
Johnson v. Sullivan, 
919 F.2d 503, 504
 (8th Cir. 1990) (quoting Kelly v. Bowen, 
862 F.2d 1333, 1336
 (8th Cir. 1988) (citations omitted)).  The CPI constitutes “‘proper proof’ of 
the increased cost of living since the EAJA’s enactment and justifies an award of 
attorney’s fees greater than [that provided for by the EAJA].”  
Id.
 (citations omitted); see 
also Kelly, 
862 F.2d at 1336
 (citations omitted).  The cost of living adjustment is 
calculated by multiplying the standard EAJA rate by the CPI for urban consumers for 

each year attorney’s fees are sought, and then dividing the product by the CPI in the 
month that the cap was imposed, in this case 155.7 for March of 1996, the year the new 
statutory cap of $125 was put into place.  See Knudson v. Barnhart, 
360 F. Supp. 2d 963, 974
 (N.D. Iowa 2004).  The hourly rate of $222.13 is largely consistent with application 
of the Urban CPI in October 2023, when counsel began work on Plaintiff’s behalf: $125 

(statutory rate) × 307.671 (October 2023 CPI-U) / 155.7 = $247.00.  See   
https://bls.gov/cpi/tables/supplemental-files/historical-cpi-u-202403.pdf (last visited May 
6, 2024).                                                                 
    The Court has reviewed all itemized time records for the work performed in this 
case and finds that the 36.55 hours billed, and the legal work performed, are not 

excessive or unreasonable.  Courts routinely grant motions requesting reimbursement for 
a similar number of hours.  See, e.g., Dianna L. B. v. Saul, No. 19-CV-2561 (TNL), 
2021 WL 733995
, at *2 (D. Minn. Feb. 25, 2021) (collecting cases) (“Awards just outside of 
[20 to 40 hours] are also not uncommon.”).                                
C.   Conclusion                                                           

    Based on the above, and the parties’ Stipulation, the Court will award the 
following reasonable attorney’s fees to Plaintiff:  $8,100 in attorney’s fees and no costs. 
                         III.  ORDER                                     
    Based on the above, and on the files, records, and proceedings herein, IT IS 
ORDERED THAT:                                                             
    1.   Plaintiff’s Motion for Award of Attorney's Fees Pursuant to the Equal 

Access to Justice Act, 
28 U.S.C. Sec. 2412
 (Dkt. 16); and the parties’ joint Stipulation for 
EAJA Fees (Dkt. 23) are GRANTED as follows: Plaintiff is AWARDED $8,100.00 for 
reasonable attorney’s fees under the EAJA.                                
    2.   In accordance with the EAJA and Astrue v. Ratliff, 
560 U.S. 586
 (2010), the 
EAJA award is payable to Plaintiff as the litigant and subject to offset to satisfy any pre-

existing debts that the litigant may owe to the United States.            
    3.   Defendant shall send the EAJA payment in Plaintiff’s name, after any 
required offset, to Plaintiff’s counsel at the office of Livgard & Lloyd PLLP. 

DATED: May 7, 2024                      s/ Elizabeth Cowan Wright         
                                       ELIZABETH COWAN WRIGHT            
                                       United States Magistrate Judge    

Reference

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