Norton Introduces New D.C. Equality Bill That Could Bring Millions of Dollars to the District

WASHINGTON, D.C.—Congresswoman Eleanor Holmes Norton (D-DC) this week introduced the District of Columbia Civil Enforcement Equality Act, which would allow the D.C. Attorney General's office to enter into contingency fee contracts with private law firms to represent D.C. in litigation, the same authority enjoyed by states, other local governments and most federal agencies. The bill is part of her "Free and Equal D.C." series of legislation, which insists on equal rights for D.C. residents, which is possible under the Home Rule Act even before the District achieves statehood.

The federal Anti-Deficiency Act, which applies to both the federal and D.C. governments, notwithstanding the District's Local Budget Autonomy Act, prohibits the federal and D.C. governments from entering into such contingency fee contracts. However, Congress has given most federal agencies the express statutory authority to enter into such contracts, notwithstanding the Anti-Deficiency Act, but has not done so for the District. As of 2012, at least 36 states, both Republican and Democratic, have used contingency fee contracts for a variety of cases.

"D.C. should have the same right as state and local governments to enter into contracts with private attorneys to ensure violations of local D.C. laws do not go unpunished," Norton said. "We saw the power of these contracts when state attorneys general joined with private law firms to sue the tobacco industry and recovered hundreds of billions of dollars for the states in a landmark settlement. My bill could help bring millions of dollars in settlements to D.C. that otherwise would not be pursued. This is both good policy and fair treatment for the District."

In a contingency fee contract, lawyers pay for the initial costs of the litigation, and then the lawyers are reimbursed only for out-of-pocket expenses and receive a percentage of any amount awarded to the plaintiff.

Norton's full introductory statement for the bill is below.

Statement of Congresswoman Eleanor Holmes Norton on the Introduction of the District of Columbia Civil Enforcement Equality Act

Ms. Norton. Mr. Speaker.

Today, I introduce the District of Columbia Civil Enforcement Equality Act. This bill is necessary to allow the District to enter into contracts with private attorneys to sue on the District's behalf for violations of D.C. law that may otherwise go unpunished due to a lack of resources. This bill would give D.C. the same authority enjoyed by states, other local governments and most federal agencies.

The federal Anti-Deficiency Act, which applies to both the federal and District governments, prohibits contracting in advance of appropriations, such as contingency fee contracts. However, Congress has provided the authority for most federal agencies to enter into such contracts, notwithstanding the Anti-Deficiency Act, but has not done so for the District. This precludes the District from entering into contracts with attorneys on a contingency fee basis. In a contingency fee contract, lawyers pay for the initial costs of the litigation, and then the lawyers are reimbursed only for out-of-pocket expenses and receive a percentage of any amount awarded to the plaintiff.

There is no federal law that precludes states and other local governments from entering into such contracts. At least 36 states, both red and blue states, have already used contingency fee contracts to enforce state laws, in addition to numerous city and county governments across the country. Contingency fee contracts are especially useful in cases with a large, costly discovery component. Examples of cases that are commonly tried on a contingency fee basis by state and local governments include nuisance, deceptive lending, securities fraud and debt and tax collection.

This is an important step to increase D.C. home rule and generate revenue for the District, and I urge my colleagues to support this bill.