VICTORY IN TEXAS IOLTA CASE

On January 28, 2000, United States District Court Judge James R. Nowlin dismissed with prejudice all claims against the Texas Equal Access to Justice Foundation and its chairperson in the remanded case of Washington Legal Foundation, et al. v. Texas Equal Access to Justice Foundation, et al. (The defendants Justices of the Supreme Court of Texas had been dismissed from the case on January 4, 2000, based upon a finding that they were entitled to complete immunity). In this 40–page opinion, Judge Nowlin held that there was neither a taking of property nor any just compensation due and therefore, no violation of the Fifth Amendment. Judge Nowlin also held that the Texas IOLTA program did not violate plaintiffs’ First Amendment rights. A copy of the opinion is available at www.txwd.uscourts.gov/Opinions/opinions.html

On June 15^th, 1998, the United States Supreme Court issued its opinion in the Phillips case regarding constitutionality of the Interest on Lawyer Trust Account (IOLTA) program which is in operation in all 50 states, including West Virginia. The decision answered one aspect of this question and remanded the case to the lower federal courts for further litigation. The IOLTA program in West Virginia will continue to operate as it has in the past while these additional issues are litigated through the federal court system.