The Legal Services Corporation published an Interim Final Rule and Request for Comments in the Federal Register on February 11 to repeal the Corporation’s regulation that prohibits LSC grantees from claiming, collecting and retaining attorneys’ fees.

The rule, which becomes effective on March 15, permits LSC grantees to make claims for attorneys’ fees in any case in which the award of fees is permitted by law. LSC grant recipients also will be permitted to collect and retain attorneys’ fees whenever such fees are awarded to them.

The rule notes that LSC has adopted a policy under which it will exercise its enforcement discretion and not take enforcement action against any recipient that filed a claim for or collected and retained attorneys’ fees between the period of December 16, 2009, and March 15, 2010.

LSC has issued a Program Letter to LSC grantees containing additional guidance on the matter.

LSC’s action is in keeping with the intent of Congress, which repealed the statutory prohibition on attorneys’ fees in the bill containing LSC’s fiscal year 2010 appropriations bill. President Obama signed the bill into law on December 16, 2009.