Funding Windfall Buoys Several Maryland Legal Services Programs
The Washington Post reports on a $2.6 million cy pres award – stemming from an old, class-action lawsuit
about cell-phone fees – that will go to funding financially-strapped legal services programs throughout the Terrapin State.
A legal aid clinic in Oxon Hill will reopen and one in Baltimore that serves consumers across the state will avoid a scheduled closing as a result of a $2.4 million award stemming from a decade-old lawsuit over excessive late fees on cellphone bills.
Thirteen legal programs in Maryland that help clients facing evictions, wage disputes and other civil cases will share the money, helping buoy programs battered by ongoing public funding cuts and drops in foundation donations.
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Maryland Legal Aid in Baltimore received the largest amount — $911,000 — which its head, Wilhelm Joseph Jr., said will plug a funding hole linked to the current low interest rates on accounts that historically generate payments for legal aid programs. As rates dropped, so did the interest income on which Wilhelm’s groups and others heavily rely. “The great pain for me was watching our money decline just as more people needed our services,” said Wilhelm.
As is noted in the Post article, and as we’ve noted in the past, Maryland’s legal services funding infrastructure was hit badly by IOLTA shortfalls in recent funding cycles. So this is great news.