2nd Circuit Rejects Establishment Clause Challenge To Legal Services Restrictions

The U.S. Second Circuit Court of Appeals has rejected a rather ingenious Establishment Clause argument in a suit challenging federal restrictions on local legal assistance programs that receive federal funding through the Legal Services Corporation. The restrictions relate to the organizations bringing class actions, seeking certain types of attorneys' fees and engaging in in-person client solicitation. When a local program receives non-federal money as well, it can create an affiliate organization to use funds for otherwise prohibited purposes, but only if it meets strict requirements of separation between the two organizations. In Brooklyn Legal Services Corp. B v. Legal Services Corporation, (2nd Cir., Sept. 8, 2006), challengers argued that under the President's faith-based initiative, religious organizations that receive federal funds have less stringent separation requirements for assuring that federal funds are not used for their religious activities. The court rejected the argument that this amounts to an unconstitutional discrimination against secular speech.