45 C.F.R. PART 1642—ATTORNEYS' FEES


Title 45 - Public Welfare


Title 45: Public Welfare

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PART 1642—ATTORNEYS' FEES

Section Contents
§ 1642.1   Purpose.
§ 1642.2   Definitions.
§ 1642.3   Prohibition.
§ 1642.4   Applicability of restriction on attorneys' fees.
§ 1642.5   Accounting for and use of attorneys' fees.
§ 1642.6   Acceptance of reimbursement from a client.
§ 1642.7   Recipient policies, procedures and recordkeeping.


Authority:  42 U.S.C. 2996e(d)(6); Pub. L. 104–208, 110 Stat. 3009; Pub. L. 104–134, 110 Stat 1321, section 504(a)(13).

Source:  62 FR 25864, May 12, 1997, unless otherwise noted.

§ 1642.1   Purpose.
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This part is designed to insure that recipients or employees of recipients do not claim, or collect and retain attorneys' fees available under any Federal or State law permitting or requiring the awarding of attorneys' fees.

§ 1642.2   Definitions.
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(a) Attorneys' fees means an award to compensate an attorney of the prevailing party made pursuant to common law or Federal or State law permitting or requiring the awarding of such fees or a payment to an attorney from a client's retroactive statutory benefits.

(b) Attorneys' fees do not include the following:

(1) Payments made to a recipient or an employee of a recipient for a case in which a court appoints the recipient employee to provide representation pursuant to a statute or court rule or practice equally applicable to all attorneys in the jurisdiction, and in which the recipient or employee receives compensation under the same terms and conditions as are applied generally to attorneys practicing in the court in which the appointment is made;

(2) Payments made to a recipient or an employee of a recipient pursuant to a grant, contract or other agreement by a governmental agency or other third party for representation of clients;

(3) Payments received as a result of sanctions imposed by a court for violations of court rules or practices, or statutes relating to court practice, including Rule 11 or discovery rules of the Federal Rules of Civil Procedure, or similar State court rules or practices, or statutes; and

(4) Reimbursement of costs and expenses from an opposing party or from a client pursuant to §1642.6.

(c) An award is an order by a court or an administrative agency that the unsuccessful party pay the attorneys' fees of the prevailing party or an order by a court or administrative agency approving a settlement agreement of the parties which provides for payment of attorneys' fees by an adversarial party.

(d) To claim attorneys' fees means to include a request for attorneys' fees in any pleading.

§ 1642.3   Prohibition.
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Except as permitted by §1642.4, no recipient or employee of a recipient may claim, or collect and retain attorneys' fees in any case undertaken on behalf of a client of the recipient.

§ 1642.4   Applicability of restriction on attorneys' fees.
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(a) The prohibition contained in §1642.3 shall not apply to cases filed prior to April 26, 1996, except that the prohibition shall apply to any additional related claim for the client made in such a case on or subsequent to April 26, 1996.

(b) Except as permitted in paragraph (a) of this section, the prohibition contained in §1642.3 shall apply to any case undertaken by a private attorney on behalf of an eligible client when the attorney receives compensation from a recipient to provide legal assistance to such client under the recipient's private attorney involvement (PAI) program, judicare program, contract or other financial arrangement.

§ 1642.5   Accounting for and use of attorneys' fees.
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(a) Attorneys' fees received by a recipient pursuant to §1642.4(a) for representation supported in whole or in part with funds provided by the Corporation shall be allocated to the fund in which the recipient's LSC grant is recorded in the same proportion that the amount of Corporation funds expended bears to the total amount expended by the recipient to support the representation.

(b) Attorneys' fees received pursuant to §1642.4(a) shall be recorded during the accounting period in which the money from the fee award is actually received by the recipient and may be expended for any purpose permitted by the LSC Act, regulations and other law applicable at the time the money is received.

§ 1642.6   Acceptance of reimbursement from a client.
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(a) When a case results in a recovery of damages or statutory benefits, a recipient may accept reimbursement from the client for out-of-pocket costs and expenses incurred in connection with the case, if the client has agreed in writing to reimburse the recipient for such costs and expenses out of any such recovery.

(b) A recipient may require a client to pay court costs when the client does not qualify to proceed in forma pauperis under the rules of the jurisdiction.

§ 1642.7   Recipient policies, procedures and recordkeeping.
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The recipient shall adopt written policies and procedures to guide its staff in complying with this part and shall maintain records sufficient to document the recipient's compliance with this part.

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