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ALG Statement on Legal Services Corporation Authorized to Engage in Class Action Suits Under Omnibus

ALG Statement on Legal Services Corporation Authorized to Engage in Class Action Suits Under Omnibus

December 16th, 2010, Fairfax, VA—Americans for Limited Government (ALG) President Bill Wilson today issued the following statement on the authorization in the omnibus spending bill for the Legal Services Corporation to engage in class action lawsuits:

“Tucked away in the 1924-page omnibus spending bill is a provision that will allow the Legal Services Corporation to engage in class action lawsuits once again. The Legal Services Corporation was prohibited from engaging in such lawsuits in the 1980’s because it had become a tool for engaging in policy rather than its intended purpose of providing legal services to low-income Americans. This power was abused in the past to shake down local, state, and federal agencies for transfer payments.

“The repeal of the class action prohibition is just a handout to the trial bar, who in addition to having their budget increased to $440 million, will now be able to direct those funds to junk lawsuits intended to milk the financial services industry, landlords, and other sectors of the economy. According to an official explanation of the provisions, the corporation intends to target banks for ‘predatory lending.’ This corporation just serves as the legal arm for left-wing causes and should be abolished.

“The more the American people find out about this bill, the worse it gets. There are no doubt dozens if not hundreds of hidden power grabs in the monster omnibus. The only responsible course of action is to pass Senator McConnell’s suggested amendment for a 60-day extension of current funding levels and let the new Congress tackle the tough job of cutting spending without special interest handouts.”

Attachments:

Authorization in the Omnibus Bill, pp. 199-200.

Explanation of Omnibus Bill Provisions, pp. 122.

Interview Availability: Please contact Rebekah Rast at (703) 383-0880 or at rrast@getliberty.org to arrange an interview with ALG President Bill Wilson.

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