From Bloomberg:
An attorney who won disability insurance benefits for his client
isn’t entitled to the fees the Social Security Administration designated
for his work before a federal court, because his 26-month delay in
requesting them wasn’t reasonable, the First Circuit said.
Jose
Pais was denied benefits by the SSA in 2014. In 2018, a federal district
court ruled in Pais’ favor and remanded the case to the SSA, which then
decided Pais was entitled to benefits.
Pais and his lawyer had
signed a contingent-fee agreement. The SSA therefore sent Pais a notice
of award in June 2019, saying that his lawyer was entitled under federal
law to fees of up to $29,159, representing 25% of the recovered
benefits.
The lawyer promptly submitted a claim to SSA for over
$7,000 for the work he did in administrative proceedings, but didn’t
submit a claim for his work before the district court until August 2021.
The district court rejected the lawyer’s excuses and said that the
delay was unreasonable under Federal Rule of Civil Procedure 60(b).
There
is not fixed time under the Social Security law for an attorney to file
a motion for fees, the opinion by Judge O. Rogeriee Thompson of the US
Court of Appeals for the First Circuit said. But there is a circuit
split over which Federal Rule of Civil Procedure applies to the request,
Thompson said.
The Tenth Circuit applies Rule 60, under which
parties have a “reasonable time” to move for “relief from a final
judgment, order, or proceeding.” But the Second, Third, Fifth, and
Eleventh circuits apply Rule 54(d)(2), which says that unless a statute
or court order says otherwise, a motion for attorneys’ fees must “be
filed no later than 14 days after the entry of judgment.”
Agreeing
with the Tenth Circuit, the First Circuit said that the SSA never hands
down a notice of award within 14 days of a district court’s judgment,
which makes rigid application of Rule 54(d)(2) impossible. It also noted
that some of the circuits that apply Rule 54(d)(2) toll the 14 days to
the date the SSA issues a notice of award. ...
What I want to know is how long it took Social Security to act on the fee petition. This delay may not be as bad as it seems.