Legal Fees In Social Security Disability Claims Are Contingent Upon Winning Past Due Benefits

Fees in Social Security Disability Cases

When Congress passed the entitlement to Social Security Disability Insurance Benefits (SSDIB) and Supplemental Security Income (SSI), it included provisions regulating the payment of attorney's fees. An attorney is entitled to a fee only if the claim results in past due benefits, and the fee is limited by law to 25% of those past due benefits. In other words, the attorney's entitlement to a fee is contingent on winning the case and the claimant is eligible for past-due benefits. The attorney can also agree to limit his fee to an amount established by the Commissioner, which currently is $5,300.00, even if 25% of past due benefits would be more than $5,300.00. W. Bryan Hall agrees to limit his fee to $5,300.00 through the administrative law judge level. If it is necessary to take the case to the Appeals Council, he still limits his fee to 25% of past due benefits, but it may be more than $5,300.00.

If a claim is denied all the way through the Appeals Council, the next step is to file for judicial review in the United States Federal Court in Baltimore. Attorney fees for representation in Federal Court must be approved by the Judge who hears the case, and are also contingent on winning. Sometimes it is possible to get a Federal Court order requiring the Social Security Administration to pay the attorney's fee for work done in Federal Court. This is done under the Equal Access To Justice Act, and is only for work done in Federal Court; this portion of the fee is paid by the government, not the claimant. Social Security must still approve the fee for work done before the Administration.

Attorneys often advance money to pay for costs related to the case, such as paying doctors for copies of medical records or for filling out a questionnaire. The client is responsible for paying these costs whether or not the claim results in past due benefits.