Ethics vs. Accountability

Attorney-client privilege at core of refusal to comply with LSC audit

BY MARK HANSEN

Legal services lawyers in Baltimore and New York City have found themselves between a rock and a hard place.

The rock, in this case, is the Legal Services Corp.’s inspector general, who ordered them to turn over the names of every client they had in 1999, along with a description of the client’s legal problem.

The hard place is the profession’s code of ethics, which generally prohibits lawyers from disclosing confidential information about clients without their consent.

Legal services lawyers say they can’t afford to lose their LSC funding, which accounts for $3.2 million of the Baltimore office’s $11 million budget this year and $11.2 million of the New York office’s nearly $28 million budget. Yet they can’t knowingly violate their ethical obligations to their clients and risk running afoul of state disciplinary authorities, either.

So they proposed a compromise. Having already turned over a list of file numbers to the inspector general, along with descriptions of clients’ legal problems, they offered to produce a corresponding list of files using only pseudonyms.

But that wasn’t good enough for Edouard Quatrevaux, the LSC’s inspector general, who is also in a difficult position.

Pressure From Above

Quatrevaux is not unmindful of the rules governing the attorney-client privilege. But he’s been ordered by Congress to audit the LSC. And the only way he can properly do that, he says, is by having access to the clients’ names.

So Quatrevaux proposed his own solution. He promised to erect a so-called Chinese wall between the collection of clients’ names and the collection of the clients’ corresponding legal problems so that nobody who had access to one list would have access to the other.

But that wasn’t good enough for the legal services lawyers in Baltimore and New York City, who say the rules prevent them from even divulging such information to a third party as long as there is any possibility the attorney-client privilege could be breached.

At that point, Quatrevaux subpoenaed the records, but both offices refused to comply. Then he filed suit against them in U.S. District Court in Washington, D.C., where his application for an order to show cause why the subpoenas should not be judicially enforced was pending in early June.

"Nobody’s looking for a fight with the inspector general," says An- drew Scherer, director of the New York office’s legal support unit. "We did this because we felt compelled to do it, and because we think it’s the right thing to do."

Wilhelm Joseph Jr., executive director of the Baltimore legal aid office, says this: "Sometimes we lose sight of the fact that poor people are people, too."

Among those expressing concern about the stalemate is the ABA’s Standing Committee on Legal Aid and Indigent Defendants.

Chair Doreen Dodson, in letters to Quatrevaux and LSC President John McKay, said the committee understood the LSC’s need to produce accurate and credible case statistics in a timely manner. But she also said the committee felt it was inappropriate for the inspector general to continue to insist that the two offices turn over client information after they had raised serious, good-faith questions about the propriety of complying with his request.

The Brennan Center for Justice, a New York City-based think tank and public interest law firm, is planning to file an amicus brief in support of the legal services lawyers on behalf of the Association of the Bar of the City of New York. The center has also urged the inspector general to find a way to accomplish his objectives "without creating a two-tiered system of protections that sacrifices the privacy of low-income clients."

Even the LSC itself seems conflicted by the dispute between its own inspector general and two of its biggest grantees.

The LSC originally threatened to cut off funding to the two programs unless they complied with the inspector general’s directive by May 1. In mid-April, however, the agency announced it would not discontinue funding while it considers the administrative appeals of the New York and Baltimore offices.

If Quatrevaux’s resolve appears to be wavering, though, he’s not letting it show.

"There’s nothing to negotiate," he says. "As far as we’re concerned, this is nonnegotiable."