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LEGAL FEES

HEARINGS

BEFORE THE

SUBCOMMITTEE ON
REPRESENTATION OF CITIZEN INTERESTS

OF THE

COMMITTEE ON THE JUDICIARY

UNITED STATES SENATE

NINETY-THIRD CONGRESS

FIRST SESSION

ON

THE EFFECT OF LEGAL FEES ON THE ADEQUACY

OF REPRESENTATION

PARTS III AND IV

SEPTEMBER 19 AND 20; OCTOBER 1, 2, 4, AND 5, 1973

Printed for the use of the Committee on the Judiciary

U.S. GOVERNMENT PRINTING OFFICE

WASHINGTON : 1974

24628 O

For sale by the Superintendent of Documents, U.S. Government Printing Office

Washington, D.C., 20402 - Price $6.50

24 1795T 155

COMMITTEE ON THE JUDICIARY

JAMES 0. EASTLAND, Mississippi, Chairman JOHN L. MCCLELLAN, Arkansas

ROMAN L. HRUSKA, Nebraska SAJ J. ERVIN, JR., North Carolina

HIRAM L. FONG, Hawali PHILIP A. HART, Michigan

HUGH SCOTT, Pennsylvania EDWARD M. KENNEDY, Massachusetts STROM THURMOND, South Carolina BIRCH BAYH, Indiana

MARLOW W. COOK, Kentucky ROBERT C. BYRD, West Virginia

CHARLES MCC. MATHIAS, JR., Maryland JOHN V. TUNNEY, California

EDWARD J. GURNEY, Florida

SUBCOMMITTEE ON REPRESENTATION OF CITIZEN INTERESTS

JOHN V. TUNNEY, California, Chairman SAM J. ERVIN, JR., North Carolina

MARLOW W. COOK, Kentucky BIRCH BAYH, Indiana

CHARLES MCC. MATHIAS, JR., Maryland
JANE FRANK, Chief Counsel and Staf Director

NEIL LEVY, A88istant Counsel
JOSEPH DAWAHARE, Minority Counsel
MATTHEW SCHNEIDER, Staj Assistant

(II)

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STATEMENT OF SUBCOMMITTEE MEMBERS

Wednesday, September 19, 1978
Tunney, Hon. John V., U.S. Senator from California, chairman, Subcom-

mittee on Representation of Citizen Interests..
Cook, Hon. Marlow W., U.S. Senator from Kentucky-

Thursday, September 20, 1973

Tunney, Hon. John V., U.S. Senator from California, chairman, Subcom-

mittee on Representation of Citizen Interests..

WITNESSES

Armstrong, Walter P., attorney at law, on behalf of the American Bar

Association..

Durham, Delores, car buyer, Washington, D.C..
Ferren, John M., attorney at law, author of "Antitrust and Ethical Aspects

of Lawyers' Minimum Fee Schedules",

Goldfarb, Lewis H., homebuyer and plaintiff in Goldfarb v. Virginia State

Bar; accompanied by: Alan Morrison, attorney at law.-

Kornher, Mr. and Mrs. Kenneth L., homebuyers, Fairfax County, Va...

Ring, Leonard M., president, Association of Trial Lawyers of America;

accompanied by: Jack Travis, treasurer, Association of Trial Lawyers

of America..

Rothschild, Professor Donald, George Washington University Law School;

accompanied by: Ricardo D. Moreno, president, Ayuda, law student;
and Winthrop N. Brown, student director of Consumer Protection

Center, George Washington University Law School -

Weaver, Peter, nationally syndicated consumer columnist.

Woodson, James, on behalf of Virginia State Bar..

Wilson, Bruce, Acting Assistant Attorney General, Antitrust Division,

U.S. Department of Justice; accompanied by: Lewis Bernstein, Chief

of Litigation Section; Keith I. Clearwaters, special assistant to the

Assistant Attorney General.

EXHIBITS AND APPENDIX DOCUMENTS AND CORRESPONDENCE

Bernstein, Lewis, chief, Special Litigation Section, Antitrust Division,

U.S. Department of Justice, remarks prepared for the National Con-

ference of Bar Presidents, August 4, 1973.-

Burns, Kenneth J., Jr., secretary, American Bar Association, letter to

Presidents of State and local Bar Associations dated November 14, 1973,

suggesting consideration of canceling minimum or suggested fee

schedules.

Folk, Harold, president, United Buying Service, letter to Senator Tunney
of November 5, 1973..

TH

181

Page

66

174

36

Ink, Dwight A., Acting Administrator, General Services Administration,

letter to Senator Tunney of September 21, 1973.
Kauper, Thomas E., Assistant Attorney General, Antitrust Division, U.S.

Department of Justice, address before New York State Bar Association,

January 24, 1973...
Perlsweig, Leon, coauthor, “How to Fight Your Case in Small Claims

Court," letter to subcommittee staff member, Matthew Schneider,

dated October 24, 1973.
Tunney, Hon. John V., U.S. Senator, letter to Harold Folk, president,

United Buying Service, dated October 10, 1973.-
Whitmer, Leslie G., director, Kentucky Bar Association, letter to members

of Kentucky Bar Association, dated September 25, 1973, rescinding
suggested fee schedules..

Wilson, Bruce B., Deputy Assistant Attorney General, Antitrust Division,

U.S. Department of Justice, remarks before Pennsylvania Bar Associa-

tion Conference of County Bar Officers, March 25, 1972..

STATUTES

15 U.S.C. $1, Sherman Act----

41

195

184

93

105

121

185

73

154

JUDICIAL AND ADMINISTRATIVE MATERIALS
Goldfarb v. Virginia State Bar, 355 F. Supp. 491 (E.D. Va. 1973)
Goldfarb, et al., v. Virginia State Bar, Civ. No. 73–1274 (4th Cir.) (appeal

pending); brief for appellant, Goldfarb.

Goldfarb, et al., v. Virginia State Bar, Civ. No. 73–1274 (4th Cir.) (appeal

pending); brief for appellee, Virginia State Bar..

ARTICLES

Arnould and Corley, Fee Schedules Should be Abolished, 57 A.B.A.J. 655

(1971)---

Book Review on: Christensen, "Lawyers for People of Moderate Means

5 VALP. U.L. Rev. 683 (1971) -

Ferren and Synder, Antitrust and Ethical Aspects of Lawyers' Minimum Fee

Schedules, 7 REAL PROPERTY PROBATE AND TRUST JOURNAL, 726 (1972).

Note, A Critical Analysis of Bar Association Minimum Fee Schedules,

85 Harv. L. Rev. 971 (1972).

Note, The Wisconsin Minimum Fee Schedule, A Problem of Antitrust, 1968

Wisc. L. Rev. 1237 (1968) -

Ronald Kessler, “The Settlement Squeeze--II," Reprinted from The

Washington Post, Monday, January 10, 1972.

PROPOSED LEGISLATION

S. 2101, a bill to amend the Truth in Lending Act to protect consumers

against unfair billing practices, and for other purposes, viz: Add the

following new title at the end thereof. Intended to be introduced by

Senator Proxmire, 93d Cong., 1st sess-

S. 2228, a bill to provide for greater disclosure of the nature and costs of

real estate settlement services, to eliminate the payment of kickbacks

and unearned fees in connection with settlement services provided in

federally related mortgage transactions and for other purposes. Intro-

duced by Senator Brock, 93d Cong., 1st sess -

PART II

GOVERNMENT REGULATION AND SUBSIDY

OF LEGAL FEES

HEARING DAYS

Monday, October 1, 1973.

Tuesday, October 2, 1973..

TESTIMONY

STATEMENT OF SUBCOMMITTEE MEMBERS

Monday, October 1, 1973

Tupr---Hon. John V., U.S. Senator for California, chairman, Subcom-

Representation of Citizen Interests.-

arlow W., U.S. Senator for Kentucky-

504

444
372
247

495

328

463

Bonner, Raymond T., attorney, Public Citizen, Inc., contributing author,

“The Nader Report on Vietnam Veterans and the Veterans Ad-
ministration"
Corcoran, John J., general counsel, Veterans Administration; accompanied

by: Howard Denney, assistant general counsel; and James Taffe,

Compensation and Pension Service, Veterans Administration
Denham, Glenn W., president, Kentucky Bar Association..
Hechler, Hon. Ken., U.S. Representative from West Virginia
Mattingly, Charles E., deputy director, National Legislative Commission,

American Legion; accompanied by: Edward Golembieski, director,

Veteran Affairs and Rehabilitation, American Legion --
Nelson, Robert, director, Legislative Department, United Mine Workers,

testifying on behalf of Arnold Miller, president, United Mine Workers

of America..

Nussbaum, Harold J., attorney at law, Washington, D.C..

Popick, Bernard, director, Bureau of Disability Insurance, Social Security

Administration; accompanied by: Joan Hutchinson, Deputy Assistant

Secretary For Welfare Legislation; Hugh A. Meade, Jr., chief, Miners

Benefits Branch; and Gerald G. Altman, Jr., chief, Cash Benefits

Branch, Social Security Division, Office of the General Counsel, Depart-

ment of Health, Education, and Welfare -

Smith, Cawood, attorney at law, Harlan, Ky--

Supplemental Statement-

Snyder, Nancy, director, Division of Coal Mine Workers' Compensation,

Office of Workmen's Compensation Programs, Department of Labor;

accompanied by: James Johnston, associate solicitor, Division of

Employee Benefits, Department of Labor.--

Yocum, James R., Commissioner of Labor, Commonwealth of Kentucky;

accompanied by: Robert Hawkins, Chief Counsel of Special Fund..

Addendum.

STATEMENTS SUBMITTED FOR THE RECORD

Coburn, Fred, miner, Hippo, Ky -

Crum, Oscar, miner, Arkansas Creek, Ky-

Greene, Hon. Harold H., Chief Judge, Superior Court of the District of

Columbia.

Hewitt, James F., Federal Public Defender, Northern District of California,

San Francisco, Calif..

Hubbard, Marion, miner, Manchester, Ky-
Mullins, Daniel, miner, Drift, Ky-
Rosen, Sol Zalel; attorney at law, Washington, D.C.
Stover, Francis, on behalf of Veterans of Foreign Wars-
Worthington, Bill, president, Kentucky Black Lung Association --

699

326
317
688
492
327

EXHIBITS AND APPENDIX

DOCUMENTS AND CORRESPONDENCE

503

The Americal Legion, Fact Sheet on Judicial Review of Veterans Admin-

istration Decisions..

Application for Adjustment of Chaim, Form No. 11, Kentucky Workmen's

Compensation Board...

Application for Program of Education or Training (under ch. 34, title 38,

U.S.C.) ---

Black_Lung Task Force, Final Report and Recommendations, prepared

by Public Systems, Inc., Louisville, Ky.
Comptroller General of the United States, letter to the Hon. Rowland F.

Kirks, Director, Administrative Office of the U.S. Courts.
CJA Voucher Form 20..

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