Hyla, Jr v. Commissioner of Social Security
Hyla, Jr v. Commissioner of Social Security
Trial Court Opinion
UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF OHIO ------------------------------------------------------------------ EDWARD JOSEPH HYLA, JR., : CASE NO. 1:18-cv-1279 : Plaintiff, : : vs. : OPINION & ORDER : [Resolving Doc. 20] COMMISSIONER OF SOCIAL : SECURITY, : : Defendant. : ------------------------------------------------------------------
JAMES S. GWIN, UNITED STATES DISTRICT JUDGE: In this Social Security case, Plaintiff Edward Hyla, Jr., seeks approval for $9,925.15 in attorney’s fees.1 Respondent Commissioner does not oppose.2 This Court concludes that awarding $9,925.15, or $503.81 per hour, would be a windfall for the Plaintiff’s attorney. Consequently, this Court ORDERS payment of attorney’s fees at $400 per hour for 19.7 hours totaling $7,880. I. Background In 2018 and 2019, Plaintiff successfully challenged the Commissioner of Social Security’s decision to deny her disability benefits.3 Consequently, this Court awarded the Plaintiff $3,400.00 in attorney’s fees under
28 U.S.C. § 2412.4On remand, the Commissioner awarded the Plaintiff $79,700.60 in past-due benefits.5 The Plaintiff now asks this Court to approve allotting 25% of the award, or $9,925.15, to his attorney
1 Doc. 20. 2 Doc. 21. 3 Docs. 1, 17. 4 Doc. 19. because of their contingency fee agreement.6 The Plaintiff’s attorney says he will refund their prior attorney’s fees if this Court approves an award greater than $3,400.00.7 II. Analysis This Court must determine what is a reasonable attorney’s fee in this case. In a typical Social Security action, a plaintiff sues the Commissioner for denying a benefits claim. When a plaintiff wins, she receives a payment of “past-due benefits” totaling what she would have received were her claim not originally denied.8 Under
42 U.S.C. § 406(b), an attorney may receive up to 25% of a past-due benefit award.
However, courts must review the reasonableness of contingency fees, even if they fall within the statutorily allotted amount.9 In the Sixth Circuit, there is “a rebuttable presumption that an attorney would receive the full 25% contingency fee under contract unless . . . the attorney would enjoy an undeserved windfall due to the client’s large back pay award or the attorney’s relatively minimal effort.”10 Factors courts consider in determining whether a contingency fee payout constitutes
a windfall include (1) “the standard rates applied to social security fee requests;”11 (2) whether an award is more than twice the standard hourly rate;12 and (3) the “the ‘brevity’ . .
6 The Administrative Law Judge previously approved $10,000.00 in attorney fees under
42 U.S.C. § 406(a). Doc. 20-2. Combined with the $9,925.15 Plaintiff seeks now, the total attorney fee award would be $19,925.15, or 25% of $79,700.60. 7 Doc. 20 at 2. 8
42 U.S.C. § 404(a)(1)(B)(i). 9 Gisbrecht v. Barnhart,
535 U.S. 789, 807(2002). ,
923 F.2d 418, 419(6th Cir. 1990). 11 ,
771 F.3d 308, 310(6th Cir. 2014). 12 ,
923 F.2d at 422. . of the representation.”13 “If the benefits are large in comparison to the amount of time counsel spent on the case, a downward adjustment is . . . in order.”14 Here, the Plaintiff’s attorney would enjoy a windfall if this court approved a $503.81 per hour rate. In Ohio, the standard billing rate for Social Security cases is $336 per hour.15 Plaintiff’s request for $503.81 per hour is approximately 150% of the standard rate. Additionally, although this Court acknowledges that the Plaintiff’s attorney succeeded, he only represented his client for 19.7 hours—a relatively brief amount of time.16 Therefore, the Court reduces the attorney’s fees to $400 per hour for 19.7 hours
totaling $7,880. III. Conclusion Accordingly, this Court ORDERS payment of attorney’s fees at a rate of $400 per hour for 19.7 hours totaling $7,880.00. The Plaintiff’s attorney must also REFUND the Plaintiff the $3,400.00 in attorney’s fees this Court previously awarded.
IT IS SO ORDERED.
Dated: June 29, 2020 JAMES S. GWIN UNITED STATES DISTRICT JUDGE
13 ,
771 F.3d at 310. 14 G ,
535 U.S. at 808. 15 The Ohio State Bar Ass’n, , at 45, available at : https://www.ohiobar.org/membership/Practice-Management-Tools-Services/economics-of-law-practice-study/. Paying the Plaintiff’s attorney $400 per hour compensates them in the 95th percentile for Ohio social security cases. 16 Doc. 20-4.
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