Robert Hayes v. Comm'r of Soc. Sec.
Opinion
This appeal challenges the district court's denial of a motion for attorney's fees filed by Plaintiff Robert Hayes's attorney, Wolodymyr Cybriwsky. 1 Because we find that the motion was untimely and that the circumstances do not merit equitable tolling, we AFFIRM.
I. BACKGROUND
In November 2010, Hayes engaged Cybriwsky to represent him in federal litigation related to the Social Security Administration's (SSA) denial of Hayes's application for Social Security disability benefits. In February 2011, the Commissioner moved to remand the case for further administrative hearings pursuant to sentence six of
In April 2017, Cybriwsky filed a motion for attorney's fees pursuant to
After holding a hearing, the district court denied the motion as untimely, and determined that the circumstances did not merit the exercise of equitable tolling. Cybriwsky timely appealed.
II. ANALYSIS
A. Standard of Review
We review the denial of a motion for attorney's fees under Section 406(b) of the Social Security Act for abuse of discretion.
See
Minor v. Comm'r of Soc. Sec.
,
B. Deadline for Filing Motions for Attorney's Fees
Cybriwsky argues that his motion for fees was timely because "no previous timeliness requirements" existed, and it was inappropriate for the district court to apply a deadline found in either the Federal Rules of Civil Procedure or the local rules of the Eastern District of Kentucky. The Commissioner concedes that neither the Social Security Act nor the regulations provide a deadline for fee motions but argues that Section 406(b) motions are subject to Fed. R. Civ. P. Rule 54(d). Rule 54 specifies that "[u]nless a statute or a court order provides otherwise," a motion for fees may "be filed no later than 14 days after the entry of judgment." Fed. R. Civ. P. 54(d)(2). The Eastern District of Kentucky has adopted a local rule authorizing petitions for attorney's fees in Social Security cases to be filed within 30 days of a final favorable decision for the plaintiff. See E.D. Ky. L.R. 83.11(d).
When a case is remanded under sentence six of Section 405(g) of the Social Security Act, as here, the remand "does not rule in any way on the correctness of the administrative decision."
Faucher v. Sec'y of Health & Human Servs.
,
We begin with Rule 54, which is compatible in purpose and language with a motion for attorney's fees under Section 406. By its express terms, however, Rule 54 's deadline of 14 days applies "[u]nless a statute or a court order provides otherwise." Fed. R. Civ. P. 54(d)(2). Local Rule 83.11(d) of the Eastern District of Kentucky authorizes fee petitions to be filed within 30 days of a final favorable decision for plaintiff. Local rules, when properly adopted, generally have "the force of law."
Hollingsworth v. Perry
,
Cybriwsky argues, however, that he was unable to make such a motion because he did not receive Hayes's Notice of Benefits until April 2017 and the SSA also did not provide crucial information concerning the benefits received by Hayes's dependents. Receipt of the Notice of Award is essential for filing a motion for attorney's fees in many Social Security cases, as most fee arrangements in this type of litigation involve the attorney receiving a percentage of the client's past-due benefits. Without this information, an attorney cannot make an accurate and complete motion for attorney's fees.
The claim that Cybriwsky did not receive the Notice of Award until April 2017, however, is contradicted by the record. In May 2012, Cybriwsky made a motion for attorney's fees pursuant to the EAJA. Attached to that motion was an itemized billing statement that included an entry dated April 5, 2012, for "Receipt and review of SSA's Notice of Award Dated 3/20/12 on Mr. Hayes along with follow-up with Atty Calvert." Cybriwsky attached a Notice of Award for Hayes to his 2017 motion for fees that was stamped received April 5, albeit without a year. In other words, Cybriwsky received the Notice of Award before the district court affirmed the decision of the ALJ. On this record, we find no clear error in the district court's conclusion that "Cybriwsky either had the actual Notice of Award or had the means to obtain it in 2012."
On April 5, 2012, Cybriwsky possessed the information contained in the Notice of Award and his motion for attorney's fees was due within 30 days of the final judgment that was entered on April 19, 2012. Cybriwsky did not file the instant motion for attorney's fees until nearly five years later, in April 2017. Accordingly, the district court did not err in concluding that the motion was untimely.
Cybriwsky's only remaining argument is that these circumstances merit the application of equitable tolling. Although ordinarily a litigant must meet the deadlines prescribed by the rules, a court may invoke its equitable authority to toll applicable deadlines in appropriate circumstances. In determining whether a party should be entitled to equitable tolling, we consider:
(1) the petitioner's lack of [actual] notice of the filing requirement; (2) the petitioner's lack of constructive knowledge of the filing requirement; (3) diligence in pursuing one's rights; (4) absence of *454 prejudice to the respondent; and (5) the petitioner's reasonableness in remaining ignorant of the legal requirement for filing his claim.
Cook v. Comm'r of Soc. Sec.
,
With respect to the first, second, and fifth factors, Cybriwsky was on notice prior to the commencement of this action that Local Rule 83.11 was in effect and being applied to Social Security cases. Rule 83.11 was last amended in December 2009, well before the commencement of this action and that amendment did not modify the 30 day filing deadline for attorney's fees in Social Security cases.
See
Joint U.S. Dist. Ct. Rules D. Ky., L.R. 83.11(d) (West); Joint Gen. Order No 09-04 (E.D. Ky. Dec. 2, 2009). Cybriwsky is a "seasoned" practitioner who regularly practices in the Eastern District of Kentucky. We have noted that " '[i]t is incumbent on litigants' to follow local rules of procedure."
Carpenter v. City of Flint
,
Similarly, the record does not reflect that Cybriwsky diligently pursued his claim. For the period of time between October 15, 2012 and March 30, 2014, Cybriwsky's time sheets show no action with respect to this case. It was not until March 2014 that records indicate any effort by Cybriwsky to contact the SSA, and then he attempted to contact the SSA on only three occasions over the course of the next three years. The record also reveals that Cybriwsky attempted to contact Hayes directly only a single time, by letter, to which he received no response. Accordingly, the third factor also weighs against Cybriwsky as the record does not demonstrate diligence in pursuing this claim.
As to prejudice, the Commissioner represents that the funds normally withheld for payment of attorney's fees have already been released to Hayes. That leaves three ways for Cybriwsky to obtain these fees. He could collect them directly from Hayes, the SSA could employ an administrative mechanism by which it would pay Cybriwsky's fees by garnishing Hayes's monthly benefits, or the SSA could waive Hayes's obligation and pay Cybriwsky's fees itself. We agree with the district court that Hayes is not likely to have the "expectation or means to pay counsel an award of attorney's fees." Regardless, holding Hayes or the SSA responsible for the fees at this late date would be prejudicial to either.
All of the test factors weigh against Cybriwsky. The circumstances of this case do not merit the exercise of equitable tolling. The district court did not abuse its discretion by refusing to apply the doctrine of equitable tolling here.
III. CONCLUSION
Because we find Cybriwsky's motion for attorney's fees to be untimely and the doctrine of equitable tolling inapplicable on this record, we AFFIRM the decision of *455 the district court denying Cybriwsky's motion for attorney's fees.
Because the SSA has already distributed the 25% of past-due benefits that was reserved in 2012 to pay Hayes's attorney's fees, an award of fees would be adverse to the interests of Hayes. We therefore refer to the motion for attorney's fees as being made by Cybriwsky, as the real party in interest.
Reference
- Full Case Name
- Robert Evert HAYES, Plaintiff-Appellant, v. COMMISSIONER OF SOCIAL SECURITY, Defendant-Appellee.
- Cited By
- 14 cases
- Status
- Published