The recent Eleventh Circuit case, Smith v. Commissioner of Social Security, on January 22, 2025 highlights just how tricky it can be to secure fair attorney’s fees under the Equal Access to Justice Act (EAJA). Let’s break it down.
The Background
Smith and Ackerman, successful plaintiffs in Social Security cases, secured remands at the district court level. As prevailing parties, they applied for EAJA attorney’s fees with detailed timesheets. The Commissioner didn’t oppose their requests, but the district court flagged certain entries as block-billed and imposed a 40% reduction on those entries.
The Eleventh Circuit’s Take
The appellate court acknowledged that block billing, where multiple tasks are lumped into one time entry, can be problematic. For example, Smith’s time entry read: “Continue reviewing administrative record, conduct research, continue drafting arguments.” The court noted that such entries made it “impossible to determine the amount of time counsel spent on each of the specific tasks mentioned in the block-billed entries.”
However, the Eleventh Circuit ruled that the district court went too far with its “arbitrary” 40% cut. As the court put it:
“A district court must do more than eyeball the request and if it seems excessive cut it down by an arbitrary percentage.” (Citing Johnston v. Borders)
It further stressed the need for “principled reasons” and clear calculations when making reductions, reminding courts of their obligation to “articulate the decisions [they] made.”
The district court’s failure to justify its across-the-board reduction led the Eleventh Circuit to vacate and remand the fee determination.
Why This Decision Is Important
Transparency in Billing: Even for closely related tasks (like reviewing records and drafting arguments), attorneys must break down their time entries to avoid reductions.
Judicial Consistency: This case spotlights the need for courts to articulate their reasoning behind fee adjustments, ensuring fairness and predictability.
Advocacy for Attorneys: Getting a remand is only part of the battle, ensuring proper compensation for our work is equally crucial.
Practice Pointers
Avoid block billing entirely. A little extra effort in your records can save a lot of headache later.
If faced with reductions, push for a well-reasoned explanation and challenge arbitrary percentages.
Use this case as a reminder to refine your billing practices and support fee petitions with meticulous detail.
Have you ever faced challenges with EAJA fees or other fee petitions?
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