Crime Committee Report e.indd - New York State Senate

III.
2009-2010 Civil Legal Services
Finds A Home in the Judiciary
New York State’s Interest on Lawyer Account Fund (‘IOLA”) is a fund that uses bank interest
to fund civil legal services in New York State which helps less affluent residents pay for legal
services in civil proceedings. The interest is generated from attorney escrow accounts. In 2008,
there was approximately $32 million in IOLA dollars available to fund 71 programs, but the historic
economic downturn and consequential low interest rates are expected to leave the fund
with just 6.5 million available to distribute in the 2010-2011 year. The grants administered by
IOLA assisted New Yorkers with representation for foreclosure actions, unemployment claims,
social security, disability claims, domestic violence litigation, landlord-tenant litigation and
scores of other legal actions.
A 75% reduction in available funding came at a time
when demand for civil legal services was soaring because of
the economy. Steven Banks, Chief Attorney, for the Legal
Aid Society, commented in 2008 that one out of seven New
Yorker’s seeking dire civil representation was turned away
because of limited resources. Banks later updated that
figure to one in nine in 2010. Clearly, the dismal economy
had a direct relation to dramatic litigation spikes in the civil
courts of New York State.
Public Protection Committees Chairs Lead the Way
In 2009, public protection chairs, Senator Ruth Hassell-Thompson, Senator John Sampson,
Senator Eric Schneiderman, and Senator Eric Adams, supported by Senator Dale Volker, Senator
George D. Maziarz, Senator Antoine Thompson, Senator Neil Breslin, Senator Velmanette
Montgomery, Senator Liz Kruger and Senator Darrel Aubertine took to the road and conducted
public hearings throughout the State of New York. The purpose of the hearings was twofold.
First, the public hearings were targeted to bring public attention to the status of civil legal
services; and secondly, the hearings were designed to bring together experts in the field who
could suggest ways to stabilize IOLA and to suggest alternative ways to secure funding for civil
legal services in the future.
Public Hearings were conducted throughout the State. In December 2009, the Committee
conducted hearings at New York University Law School in Manhattan and at State University
of New York’s Buffalo Law School. In January 2010, the Committee conducted a joint Assembly
and Senate Public Hearing on IOLA and the Future of Civil Legal Services at the Legislative
Office Building in Albany. Representing the Assembly were Helene E. Weinstein, Chair
Judiciary Committee, Assemblyman Daniel J. O’Donnell, Assemblyman Charles D. Lavine and
Assemblyman Rory I. Lancman.
The response to the public hearings was overwhelming as hundreds of leaders from the
judiciary, civil legal service community, law schools, bar associations, localities and counties,
domestic violence providers, disability advocates, volunteer lawyer’s associations, good government
watchdog groups, policy think tanks and CLS experts from California and Pennsylvania
testified in support of civil legal service providers and the need to secure funding.
A major factor highlighted during the hearings was the work of civil legal service lawyers
in winning cases for New Yorkers seeking to adjudicate federal claims and domestic relations
Standing Committee on Crime Victims, Crime and Correction | 2009-2010 Report 3