News Briefs
U.S. Supreme Court decision raises
questions about Wisconsin IOLTA program
By Thomas Heine
On June 15, 1998, the U.S. Supreme Court announced a 5 to 4 decision
in Phillips v.
Washington Legal Foundation, a case which may ultimately impact
the Wisconsin Interest on Lawyers Trust Accounts (IOLTA) program and
similar programs nationwide.
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Other News:
Legislature rewrites Operating While Suspended and Operating
After Revocation laws
1997 Wis.
Act 84 fundamentally changes OWS and OAR laws in Wisconsin. Some
provisions become effective as early as August 1.
1997 Wisconsin Act 140 defines unincorporated nonprofit
associations, limits liability
The Uniform Unincorporated Nonprofit Association Act (UUNAA)
provides clear definitions of what is considered a nonprofit
organization under Wisconsin law and limits the liability of a nonprofit
organization's members.
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In Phillips, the Court ruled that the clients have a
property interest in the money earned on pooled, short-term lawyers'
trust accounts held under the TexasIOLTA program. The Court did not
eliminate the program in Texas and made no judgment about other IOLTA
programs throughout the country. The case has been sent back to the
lower courts to decide whether the State of Texas has "taken" property
in violation of the Fifth Amendment and what, if any, compensation must
be made. It may take several years to resolved this issue by the
courts.
The Wisconsin IOLTA program was created by the Wisconsin Supreme
Court in 1986 to permit attorneys to place client trust funds in pooled
NOW accounts that earn tax-free interest. The income derived from these
accounts is used by the Wisconsin Trust Account Foundation (WisTAF),
which manages Wisconsin's IOLTA program, to fund organizations providing
civil legal services to the poor.
The WisTAF Board believes that the
property laws of Texas and Wisconsin are different and that the U.S.
Supreme Court has postponed consideration of the most salient premise of
the IOLTA program: that clients do not sustain any economic loss as a
result of IOLTA. No court, including the U.S. Supreme Court, has found
IOLTA programs unconstitutional. While the WisTAF Board is studying the
decision to determine if it should adjust Wisconsin's program, the
program functions as usual.
Pending future court decisions and WisTAF's research into this issue,
lawyers should maintain their IOLTA accounts and banks should continue
transmitting interest to the program. There are numerous alternatives to
explore that should ensure the continuation of the IOLTA program well
into the future. The State Bar, the Wisconsin Supreme Court, and WisTAF
will work together to review the underpinnings of IOLTA, propose
requisite changes, and keep the Bar and state financial institutions
informed.
The IOLTA program has become a solid source of support for the
delivery of civil legal services nationwide. These programs granted
approximately $100 million for civil legal services to poor people in
1997. In 1998, WisTAF granted $1.4 million for the delivery of legal
services to the poor in Wisconsin.
Thomas Heine is executive director of
the Wisconsin Trust Account Foundation, which manages Wisconsin's IOLTA
program.
Most family law timelines not affected by 1997 Wis. Act 187
1997
Wis. Act 187 is one of the myriad of bills Gov. Thompson recently
signed into law. The act, which applies to civil actions commenced on or
after May 12, 1998, extends both the time to serve a summons from 60 to
90 days and the time to answer the complaint from 20 to 45 days.
"The act extends the time to serve a summons in a family law action
from 60 to 90 days," says Gregg Herman, past chair of the State Bar
Family Law Section. "However, family law practitioners should note that
1997 Wis. Act 187 does not change the time limits for responding to a
petition in a family law action." In particular, the act does not modify
section 767.085(3), Wis. Stats., which requires serving a response or
counterclaim within 20 days after the service of the petition.
The new act also does not modify section 767.145(2), Wis. Stats.,
which permits the court to order a 60-day extension for service of
initial papers, upon a demonstration of good cause by the petitioner,
according to Herman.
The corollary provision for paternity cases in section 767.456(1),
also is not modified by the new law.
Melli award honors contributions to women in the law
The Legal Association for Women seeks nominations for the 1998
Marygold Melli Achievement Award.
This annual award recognizes an outstanding Wisconsin individual who
has made significant contributions to women in the law by: advancing the
interests of women members in the legal profession; promoting
improvements in the administration of justice; promoting equality and
social justice for all people; promoting the rights of women in society;
and/or improving relations between the legal profession and the public.
The award was established in 1994 in honor of Melli, who successfully
managed a distinguished career at the U.W. Law School, a prolific legal
writing career, and extensive community and professional service while
raising four children.
Ruth B. Doyle, Mary Lou Munts, Chief Justice Shirley Abrahamson, and
Judge Barbara Crabb are previous award recipients.
Nomination forms and additional information are available from Janice
M. Baldwin, 125 Nautilus Dr., Madison, WI 53705, (608) 233-8445.
Nomination materials are due by Aug. 15.
Wisconsin Lawyer
