‘Windfall’ Determinations for Attorneys’ Fees May Take Into Account Lodestar Calculation

An excessive hourly rate, when viewed alongside other factors, is an appropriate consideration when determining if an attorney’s contingency fee constitutes a “windfall,” the U.S. Court of Appeals for the Fifth Circuit held Sept. 30 (Jeter v. Astrue).

In an effort to provide guidance to lower courts, Judge Fortunato P. Benavides said that the U.S. Supreme Court’s decision in Gisbrecht v. Barnhart, 535 U.S. 789 (2002), flatly rejected the use of lodestar calculations as a “starting point” for judging a fee’s reasonableness in Social Security benefits cases.

However, when used in conjunction with “additional factors” tending to ...