Velazquez v. Legal Services Corp.

356 F. Supp. 2d 267, 2005 U.S. Dist. LEXIS 2629, 2005 WL 419079
CourtDistrict Court, E.D. New York
DecidedFebruary 22, 2005
Docket1:97-cr-00182
StatusPublished

This text of 356 F. Supp. 2d 267 (Velazquez v. Legal Services Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Velazquez v. Legal Services Corp., 356 F. Supp. 2d 267, 2005 U.S. Dist. LEXIS 2629, 2005 WL 419079 (E.D.N.Y. 2005).

Opinion

SUPPLEMENTAL MEMORANDUM AND ORDER

BLOCK, District .Judge.

I.

In its December 20, 2004 Memorandum & Order (“M & 0”) in the above-captioned actions granting, in part, plaintiffs’ motion for a preliminary injunction, the Court invited the parties to “notify the Court ... whether there are any viable claims that remain and, if not, whether there is any reason why finality should not now be achieved by converting the preliminary injunction into a permanent injunction.” Velazquez v. Legal Services Corp., 349 F.Supp.2d 566, 613 n. 26 (E.D.N.Y.2004). Having reviewed the parties’ responses, the Court will not enter a permanent injunction at this time; moreover, the Court modifies its M & O in one respect.

In their response to the Court’s invitation, plaintiffs conditioned their consent to entry of a permanent injunction on the Court eliminating “provisions of the [M & O] that some might construe as” imposing “restrictions on the plaintiffs beyond those that ... LSC already imposes.” Letter from Burt Neuborne on behalf of plaintiffs (Jan. 20, 2005) at 1. Specifically, plaintiffs took issue with provisions requiring (1) that LSC-grantees and their affiliates maintain separate rqoms for areas “open t,o the public (for example, reception areas and conference rooms to meet with clients or to conduct depositions .or interview witnesses) ... [because] permitting client contact with LSC and non-LSC clients in the same room, albeit at different times, is bound to create public confusion, and should not be countenanced,” Velazquez, 349 F.Supp.2d at 612, and (2) that “lawyers handling a case containing both restricted and non-restricted components must identify themselves as lawyers for the affiliate and charge all their time and costs to the affiliate for the duration of the case.” Id.

With respect to the former provision, plaintiffs contended that “[r]equiring two sets of waiting areas and conference rooms ... , imposes an unnecessary and unjustifiable burden on the day-to-day activities of a legal services office.” 1 Pis.’ *270 Mem. Regarding Remaining Claims at 3. With respect to the latter provision, plaintiffs contended that it could be construed as prohibiting activities permitted under LSC’s regulations, for example, “representing a client until he or she becomes ineligible”; “representing a ease in which a sudden need later arises to seek a fee award”; and “representing a client in a class action in circumstances in which LSC’s regulations authorize representation pursuant to the class action restriction.” Letter from Neuborne at 1-2.

Prior to plaintiffs’ submission, defendant LSC expressed its belief that the M & 0 “fully resolved all outstanding issues, and that plaintiffs do not have any viable claims remaining”; accordingly, it had no objection to the Court converting its preliminary injunction into a permanent injunction. Letter from Stephen Ascher on behalf of LSC (Jan. 19, 2005) at 1. LSC also noted that it was simultaneously filing a notice of appeal. See id.; see also [LSC’s] Notice of Appeal (Jan. 19, 2005). After receiving plaintiffs’ submission, LSC wrote that the issues plaintiffs raised were based on new facts that were not properly before the Court, and that their concerns “appear[ed] to be based on the ... assumption that LSC will apply the Court’s ruling not only unconstitutionally, but in bad faith.” Letter from Stephen L. Ascher on behalf of LSC (Jan. 26, 2005) at 1.

Defendant-intervener United States (“Government”) argued that plaintiffs’ request to eliminate the requirement that LSC grantees and their affiliates maintain separate public areas “would have the Court endorse a subterfuge that would allow [grantees] to feign compliance with the LSC statute by engaging in restricted activities through ‘affiliates’ that, in all meaningful respects, are precisely the same entity.” See [Government’s] Mem. Opp. Pis.’ Request for Perm. Inj. at 1. With respect to the requirement that in cases with restricted components, lawyers identify themselves as working for the affiliate and charge their time and costs to the affiliate, the Government argued that

the Court can simply clarify that this particular requirement applies solely to cases that contain “restricted” components as described in the statute and the LSC’s implementing regulation. Thus, for example, a case involving a client who is currently eligible (but who may become ineligible) would contain a “restricted” component only if and when the client becomes ineligible.

Id. at 4. Despite the parties’ disagreement, the Government contended that “there is no sound reason for the Court to delay entry of judgment in this protracted litigation” by converting its preliminary injunction into a permanent injunction. Id. at 1 n. 1.

In subsequent informal telephone conferences with the parties, the Court commented that after reviewing the parties’ post-M & O submissions, it believed that the provision of its M & O requiring that “lawyers handling a case containing both restricted and non-restricted components must identify themselves as lawyers for the affiliate and charge all their time and costs to the affiliate for the duration of the case,” lacked clarity and was not in keeping with the conceptual bases for its M & O. Accordingly, it offered the parties an opportunity to collectively propose an appropriate modification, without prejudice. On February 17, 2005, counsel for LSC contacted chambers and informed the Court that the parties had not been able to do so. On that same day, the Government also filed a notice of appeal, see [Government’s] Notice of Appeal (Feb. 17, 2005), and plaintiffs filed a notice of cross-appeal. See [Plaintiffs’] Notice of Cross-Appeal (Feb. 17, 2005).

*271 II

With respect to plaintiffs’ argument that the Court should eliminate the requirement that LSC-grantees and their affiliates maintain separate rooms for areas open to the public, the Court notes that in crafting its injunction, it “agree[d] with LSC that some degree of separate physical premises [was] justified to avoid the appearance of endorsement[.]” Velazquez, 349 F.Supp.2d at 612. It therefore concluded that drawing a distinction between the public and non-public aspects of legal representation would be a sound conceptual dichotomy in balancing the parties’ respective interests under the undue burden test; to do otherwise would risk obfuscating all lines of physical separateness, thereby unduly compromising the Government’s legitimate interest, albeit of limited weight, in preventing the appearance of the endorsement of restricted activities.

Accordingly, the Court declines the plaintiffs’ invitation to modify its M & 0 based on the current record to permit the same facilities to be used for public and nonpublic purposes as a condition for serving a quietus to this litigation so that a permanent injunction may now be entered.

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Bluebook (online)
356 F. Supp. 2d 267, 2005 U.S. Dist. LEXIS 2629, 2005 WL 419079, Counsel Stack Legal Research, https://law.counselstack.com/opinion/velazquez-v-legal-services-corp-nyed-2005.