[Federal Register Volume 60, Number 42 (Friday, March 3, 1995)]
[Notices]
[Page 11977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-5241]



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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Social Security Administration


Rescission of Social Security Acquiescence Ruling 87-1(6)

AGENCY: Social Security Administration, HHS.

ACTION: Notice of Rescission of Social Security Acquiescence Ruling 87-
1(6)--Webb v. Richardson, 472 F.2d 529 (6th Cir. 1972).

SUMMARY: In accordance with 20 CFR 404.985(e) and 422.406(b)(2), the 
Commissioner of Social Security gives notice of the rescission of 
Social Security Acquiescence Ruling 87-1(6).

EFFECTIVE DATE: March 3, 1995.

FOR FURTHER INFORMATION CONTACT:
Gary Sargent, Litigation Staff, Social Security Administration, 6401 
Security Blvd., Baltimore, MD 21235, (410) 965-1695.

SUPPLEMENTARY INFORMATION: A Social Security Acquiescence Ruling 
explains how we will apply a holding in a decision of a United States 
Court of Appeals that we determine conflicts with our interpretation of 
a provision of the Social Security Act or regulations when the 
Government has decided not to seek further review of the case or is 
unsuccessful on further review.
    As provided by 20 CFR 404.985(e)(2), a Social Security Acquiescence 
Ruling may be rescinded as obsolete if a circuit court overrules or 
limits itself on an issue that was the basis of an Acquiescence Ruling.

    On January 6, 1987, we issued Acquiescence Ruling 87-1(6) to 
reflect the holding in Webb v. Richardson, 472 F.2d 529 (6th Cir. 
1972), that the tribunal that ultimately allows an individual's 
retirement, survivor's or disability insurance (title II) claim may 
approve an attorney's fee covering services provided during the entire 
appeal process (at both the administrative level of review and before 
the Federal courts) and that such approved fee is limited to 25 percent 
of the past-due benefits.
    On September 14, 1994, the United States Court of Appeals for the 
Sixth Circuit issued a judgment in Horenstein v. Secretary of Health 
and Human Services, 35 F.3d 261 (6th Cir. 1994) (en banc), in which it 
overruled Webb and joined seven other circuit courts by holding that a 
tribunal may award attorneys' fees only for the services performed 
before the tribunal. The Sixth Circuit also held that only fee awards 
for services performed in Federal courts, not awards for services 
performed before the Secretary, are limited to 25 percent of past-due 
benefits. The Sixth Circuit recognized that section 206(b)(1) of the 
Social Security Act (the Act) establishes a separate standard for 
awarding attorneys' fees for services performed in cases before the 
Federal courts and that those fees may not exceed 25 percent of the 
total past-due benefits. The Sixth Circuit also recognized that 
Congress made specific provision under section 206(a)(1) of the Act for 
awarding reasonable attorneys' fees for services performed before the 
Secretary at the administrative level, and that these fees are not 
limited by past-due benefits. Furthermore, the circuit court found that 
in cases involving court remands the court will set attorneys' fees, 
limited to 25 percent of past-due benefits, for services performed 
before it and that the Secretary will separately set reasonable 
attorneys' fees for the services performed at the administrative level.
    Because the Sixth Circuit's judgment in Horenstein overruled the 
holding in Webb that resulted in our issuance of Acquiescence Ruling 
87-1(6), we are rescinding that Acquiescence Ruling.

(Catalog of Federal Domestic Assistance Programs Nos. 93.802 Social 
Security--Disability Insurance; 93.803 Social Security - Retirement 
Insurance; 93.805 Social Security - Survivors Insurance; 93.806 
Special Benefits for Disabled Coal Miners.)

    Dated: December 28, 1994.
Shirley S. Chater,
Commissioner of Social Security.
[FR Doc. 95-5241 Filed 3-2-95; 8:45 am]
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