John S. MacDonald v. Caspar W. Weinberger, Secretary of the Department of Health, Education and Welfare

After unsuccessfully prosecuting a pro se claim for retroactive Social Security disability benefits through the Department of Health, Education and Welfare (HEW), MacDonald secured the professional services of an attorney. On MacDonald’s behalf, the attorney filed a suit against the Secretary of HEW in the District Court, but before the court heard the merits of MacDonald’s claim, the Secretary moved that the matter be remanded to HEW for further administrative consideration. MacDonald consented to the Secretary’s request, and the district judge granted the Secretary’s motion. After a new hearing within the agency, HEW allowed MacDonald’s claim and awarded him $9,748 in past-due benefits.

MacDonald’s attorney then filed a petition in the District Court for an allowance of $1,200 in attorney’s fees, to be paid from the benefits awarded MacDonald. In his petition, the attorney alleged that he had originally taken MacDonald’s case for a contingent fee of one-third of the benefits awarded, plus a $150 retainer, but that subsequently he had learned that the one-third fee exceeded the 25 percent maximum allowed by law. The attorney further stated that while he could not…