LSC to Lift Restriction on Attorneys’ Fee Awards Following Change in Federal Law
Legal Services E-lert
Bibliographic Info:
Author: LSC Updates
Source: “LSC Board Acts to Lift Attorneys’ Fees Restriction,” Legal Services Corporation
Date: February 4, 2010
LSC announces: “LSC’s Board of Directors took action at its January 30 meeting in Washington, D.C., to repeal the Corporation’s regulation prohibiting LSC grantees from claiming, collecting and retaining attorneys’ fees. The Board asked LSC staff to draft and issue an interim final rule that would eliminate the regulation while maintaining its sections dealing with accounting for and use of fees, and acceptance of reimbursement of costs from clients. The interim final rule would become effective 30 days after publication in the Federal Register. LSC will soon issue interim guidance to grantees regarding its enforcement policy pending the effective date of the interim final rule.”
The new rule is being issued to bring LSC’s internal regulations into line with the FY 2010 appropriations legislation, enacted on December 16, 2009, which repealed the 14-year old restriction barring LSC grantees from seeking court awarded attorneys’ fees. LSC’s interim final rule will permit LSC programs to claim, collect and retain attorneys’ fees retroactively, on work done prior to December 16, 2009 for which fees are still available, and for all actions taken on or after December 16th, as permitted by applicable state or federal law.