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IOLTA Ruling Media Coverage

The New York Times
March 29, 2003
Editorial


A Win for Legal Services

The Supreme Court handed a major victory this week to poor people with legal problems, and to the justice system as a whole. It rejected, by a 5-to-4 vote, a conservative legal group's challenge to a nationwide program that pools the interest on short-term bank accounts that lawyers hold in trust for their clients and uses that money to finance legal services. If the challenge had prevailed, legal services organizations across the country would have lost $160 million a year, or about 15 percent of their already tight budgets.

The lawsuit, by the Washington Legal Foundation, claimed that the program, called Interest on Lawyers' Trust Accounts, was an unconstitutional taking of property. But nothing is taken because the money individual clients would earn on the short-term accounts would be less than the transaction costs of retrieving it. Justice Sandra Day O'Connor broke with the court's conservatives and voted to uphold the program. Thousands of poor people who get help when they are cheated, abused by a spouse, denied medical care or evicted owe her and the other justices in the majority a debt of gratitude.

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