The Social Security Administration does not have the authority to demand the return of fees it paid to an attorney, even though the firm's client, a disability claimant, disputed the bill in a bankruptcy petition, the 2nd U.S. Circuit Court of Appeals has ruled. Charles Binder said in an interview that, despite the small amount of money involved, the case was an important win for his firm because it was a rebuff to the "arbitrary" way the Social Security Administration treats attorneys and claimants.
March 29, 2007 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
The Social Security Administration does not have the authority to demand the return of fees it paid to an attorney who represented a disability claimant whose debts were discharged in bankruptcy, a federal appeals court has ruled.
The 2nd U.S. Circuit Court of Appeals said the payment of $1,200 to the firm of Binder & Binder could not be undone by the agency even though the debtor disputed the firm’s bill in her bankruptcy petition.
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