Claimant's Representative and Fees

Claimant’s Representative and Fees

 

A social security disability representative (attorney or non attorney) usually has a new client sign a fee agreement form, in addition to signing an ssa-1696 and several HIPPA-compliant medical release forms.  Every fee agreement relationship that is entered into by a SSD or SSI disability claimant and their attorney or non-attorney disability representative must be approved by the Social Security Administration. (ssa.gov)

In our case the Judge has issued a fully favorable decision awarding McDivet disability.  However, there is another 1696 form in McDivet’s file from Attorney Etheridge.  In my initial interview with McDivet, I was told that I was the first representative that he has had in this case.  However, McDivet now remembers that he did meet with Etheridge and did appoint her as his attorney, but dropped her a few weeks later because she did not contact him or done any work on his case.

So the big question is - Is this fee agreement binding? Yes, unfortunately it is. And even though not every fee agreement is the same, they all stipulate that, in the event a represented case is won, a claimant shall pay a specified fee (in this case 25% of the claimant's back benefits, or $5300.00. which ever is less).  (ssa.gov)

My next big question would be - If a disability claimant discharges their representative and chooses a different representative, will the first fee agreement still be binding? Possible, depending on how much work the original representative did for the claimant.  But, the claimant may dispute an attorney or non-attorney's right to receive a fee.  A disability representative who has been replaced by a subsequent advocate may file a petition if they believe they are entitled to receive compensation for the work they've done on a claimant's case behalf prior to being discharged. (ssa.gov)

So, in this case we need to file a fee petition for the work we have done on McDivet’s case if we want to be paid our representatives fee.  So will Etheridge. A fee petition is a written statement signed by a claimant's representative requesting the fee the representative wants to charge and collect for services he or she provided in pursuing the claimant's benefit rights in proceedings before the SSA.

A representative who elects to use the fee petition process generally files the petition after his or her services in the case have ended. Based on this petition, SSA will authorize a reasonable fee for the specific services provided. (Wolf & Proszek, 2003)

 A fee petition differs from a fee agreement, for the reason that it requires the representative to prove entitlement to the fee. This proof includes time records and documentation of activities undertaken on behalf of the claimant.  A fee petition is far more time consuming, but it enables the representative, if approved by the judge, to collect a larger fee, provided the time records and activities undertaken are justified. (Wolf & Proszek, 2003)

When considering a fee petition, the following factors are weighed by the ALJ: Dates services began and ended; Amount of the fee to be charged; Amount of expenses incurred; Description of the representative’s “special qualifications” that enabled him or her to give valuable help to the claimant; Complexity of the case; Level of skill and competence required; Amount of time actually spent; and Results obtained. (Wolf & Proszek, 2003)

A fee agreement is simply what it implies: It is an agreement, in writing, between the representative and the claimant, whereby the claimant agrees to pay a fee to the representative if he or she is successful; provided, however, that the fee agreement complies with the requirements of federal law. The law requires that a fee cannot exceed 25 percent of all back-due benefits, or $5,300, whichever is less. “Back-due benefits” are those monies paid from the date disability is found (the onset date) to the date of the decision. The fee is calculated on this amount, not monies accruing after the date of the decision. As long as the language of the fee agreement contains this limitation, the agreement will be approved. (Wolf & Proszek, 2003)

A fee agreement is a written statement signed by the claimant and his or her appointed representative specifying the fee the representative expects to charge and collect, and the claimant expects to pay, for services the representative provides in pursuing the claimant's benefit rights in proceedings before the SSA.  In order for SSA to approve a fee agreement, the representative must submit it before the date of the first favorable determination or decision.  SSA makes on a claim after the representative's appointment. If the representative does not submit a fee agreement by that date, SSA assumes the representative either will file a fee petition or waive a fee. (Wolf & Proszek, 2003)

If the representative submits a fee agreement before the date SSA makes a favorable decision, SSA will approve the fee agreement at the time of the favorable decision if the statutory conditions for approval are met and no exceptions to the fee agreement process apply. Once SSA approves the fee agreement, the fee specified in the agreement is the maximum fee the representative may charge and collect for all services in the claim. (Wolf & Proszek, 2003)

 

References

 

Social Security Administration Representative Web site located athttp://www.ssa.gov/representation/ last accessed on August 26, 2008

Wolfe, J.S. and Proszek, L.B. (2003). Social Security Disability and the Professional. Clifton Park, New York: Thomson Delmar Learning.