SCOTUS Disagreed With Eleventh Circuit, Following The Contrary Conclusion By Three Other Circuit Courts.
United States Supreme Court
On January 8, 2019, the United States Supreme Court issued its opinion in Culbertson v. Berryhill, No. 17-773 (U.S. Supreme Court Jan. 8, 2019), which confronted this issue in the social security benefits area: “Whether fees subject to 42 U.S.C. § 406(b)’s 25-percent cap related to the representation of individuals claiming Social Security benefits include, as the U.S. Courts of Appeals for the 6th, 9th, and 10th Circuits hold, only fees for representation in court or, as the U.S. Courts of Appeals for the 4th, 5th, and 11th Circuits hold, also fees for representation before the agency.”
In a unanimous opinion written by Justice Clarence Thomas, SCOTUS decided that the 42 U.S.C. § 406(b)(1)(A) cap of 25% applies only to fees for court representation rather than aggregate fees awarded under § 406(a) and (b), which can include more inclusive “reasonable” agency fees unless a fee agreement dictates otherwise. It disagreed with the Eleventh Circuit, endorsing the conclusion reached by three other federal courts of appeal.
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