Inmates of the Rhode Island Training School v. Martinez

465 F. Supp. 2d 131, 2006 U.S. Dist. LEXIS 88213, 2006 WL 3505847
CourtDistrict Court, D. Rhode Island
DecidedDecember 5, 2006
DocketC.A. No. 71-4529-L
StatusPublished
Cited by1 cases

This text of 465 F. Supp. 2d 131 (Inmates of the Rhode Island Training School v. Martinez) is published on Counsel Stack Legal Research, covering District Court, D. Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inmates of the Rhode Island Training School v. Martinez, 465 F. Supp. 2d 131, 2006 U.S. Dist. LEXIS 88213, 2006 WL 3505847 (D.R.I. 2006).

Opinion

DECISION AND ORDER

LAGUEUX, Senior District Judge.

The antecedents of this dispute date back to 1971, when a group of juvenile inmates of Rhode Island’s Boys’ Training School sued the state officials who ran the School under 42 U.S.C. § 1983 in an effort to improve the conditions of their confinement at that facility. In 1972, Plaintiffs, a changing group of boys incarcerated at the correctional facility, were certified as a class by Judge Raymond Pettine of this Court. In 1973, the parties entered into a Consent Decree which addressed Plaintiffs’ concerns including overcrowding, a deteriorated and inadequate physical plant, insufficient staffing, and inadequate academic, vocational and physical education programs. A Special Master was appointed by Judge Pettine to oversee compliance with the Consent Decree. Because Plaintiffs were identified as the prevailing party, attorneys’ fees were awarded pursuant to 42 U.S.C. § 1988. Since that time, attorneys’ fees have been paid by the state officials from the public fisc on an ongoing basis as continued advocacy has been necessary to ensure compliance with the original Consent Decree, and to update the Decree in order to address new and additional problems.

In 2000 after the case was assigned to this writer, the American Civil Liberties Union Foundation (“ACLU”) entered the case on behalf of the Plaintiffs, with a local cooperating attorney working with the support and assistance of an attorney from the organization’s National Prison Project. Soon thereafter, the Rhode Island Department- of Children, Youth and Families (“DCYF”) which operates the Training School, altered its practice of paying attorneys’ fees to Plaintiffs on the advice of the Attorney General because of concerns over prohibitions against the payment of legal fees to non-lawyers. From 2002 to 2004, the fees were paid into an ACLU escrow account. Since 2004, payment of the fees has been withheld, although awarded by the Court.

In response, the ACLU and its local affiliate, American Civil Liberties Union Foundation Rhode Island (“ACLU-RI”), have brought this matter to a head by filing a Motion to Intervene pursuant to Federal Rule of Civil Procedure 24(a)(2), and a Motion for Approval of the Payment and Disbursement of Attorneys’ Fees and Costs. Defendants object to both Motions.

Background

The parties to this dispute include, on the one side, the Plaintiff class of boys and, now, girls incarcerated at the Training School, and the proposed Intervenors ACLU and ACLU-RI. The ACLU and the ACLU-RI are non-profit corporations created to defend the civil liberties embodied in the United States Constitution. The other side of this dispute includes DCYF, the Attorney General for the State of Rhode Island, and the State’s Chief Disciplinary Counsel (collectively “Defendants”).

The focus of the dispute concerns the interpretation and reach of three Rhode Island rules regulating the payment of legal fees. Rhode Island Rule of Professional Conduct 5.4(a) states that, “A lawyer or law firm shall not share legal fees with a nonlawyer,” except in enumerated instances which do not apply to this case. Rhode Island Rule of Professional Conduct 7.2(c) [134]*134prohibits lawyers from compensating non-lawyers for recommending their services.1 The third prohibition is codified in Rhode Island General Laws § 11-27-3, which states:

Any person, partnership, corporation, or association that receives any fee or any part of a fee for the services performed by an attorney at law shall be deemed to be practicing law contrary to the provisions of this chapter.

A violation of this section is punishable by a fine, or, in some instances, a prison sentence. R.I. Gen. Laws § 11-27-14.

The prohibition against fee-sharing with nonlawyers is a longstanding tenet of our country’s legal system. The focus of the public policy concern is that lawyers might arrange for nonlawyers to solicit business for them in exchange for a share of the fees — what is generally referred to as “ambulance-chasing.” The prohibition is also intended to prevent corporations from offering legal services through salaried lawyers, where clients’ fees would contribute to the corporate bottom line, thereby compromising lawyer independence. Generally, while the prohibitions were not necessarily intended to affect organizations such as the ACLU, they are drafted broadly and, when interpreted literally, they do encompass the ACLU, as well as other not-for-profit legal services organizations, in their sweep.

The ACLU employs salaried staff attorneys to litigate certain civil rights cases. If their efforts are successful and attorneys’ fees are awarded, then those fees are turned over to the ACLU. Similarly, other ACLU cases are litigated by cooperating private attorneys, who take the cases on a volunteer, or pro bono, basis. These attorneys agree at the outset to turn over some or all of any awarded fees to the ACLU, which pays the up-front costs associated with the litigation. The monies generated through these efforts provide a significant source of the organization’s funding, and support ongoing civil rights litigation. This arrangement prevailed in Rhode Island until recently.

On June 14, 2000, the Rhode Island Supreme Court Ethics Advisory Panel issued an opinion reviewing Rhode Island Rules of Professional Conduct 5.4(a) and 7.2(c), in response to an inquiry from a volunteer cooperating attorney for ACLU-RI. The Panel concluded, “It is ethically improper under both Rule 5.4(a) and Rule 7.2(c) for a lawyer who undertakes pro bono representation in RI-ACLU sponsored litigation to pay a percentage of court-awarded attorneys’ fees to the RI-ACLU.” Opinion No.2000-05, Request No. 801, page 1. The Panel catalogued the concerns behind the Rules, and reviewed a formal opinion of the American Bar Association’s Standing Committee on Ethics and Professional Responsibility (Formal Opinion 93-374), wherein the ABA had reviewed the same prohibitions, codified by the ABA Model Rules, and had come to the opposite conclusion: “that the sharing of court-awarded fees with sponsoring nonprofit organizations does not present the threat of interference with a lawyer’s independent judgment or financial incentive sufficient to invoke the prohibition of Model Rule 5.4(a).” Opinion No.2000-05, Request No. 801, page 2. The Rhode Island Supreme Court Ethics Advisory Panel concurred with the ABA that prohibitions against fee-sharing “ought not” to apply in the context of RI-ACLU sponsored pro [135]*135bono litigation because such an application did nothing to advance the underlying purpose of the rules. Nevertheless, the Panel opined:

Notwithstanding the public policy considerations that would justify an additional exception to Rule 5.4(a) which would permit fee-sharing in the situation presented in this inquiry, the Panel declines to interpret such an exception where the language of the rule is clear on its face.... The Panel is similarly limited by the plain meaning of the language of Rule 7.2(c).

Opinion No.2000-05, Request No. 801, page 8.

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Related

INMATES OF THE RI TRAINING SCHOOL v. Martinez
465 F. Supp. 2d 131 (D. Rhode Island, 2006)

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Bluebook (online)
465 F. Supp. 2d 131, 2006 U.S. Dist. LEXIS 88213, 2006 WL 3505847, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inmates-of-the-rhode-island-training-school-v-martinez-rid-2006.