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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 I AND II

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

24-625 0

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

Washington, D.C., 20402 - Price $5.25

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COMMITTEE ON THE JUDICIARY

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

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

HIRAM L. FONG, Hawaii 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 INTEREST8

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, A 88istant Counsel
JOSEPH DAWAHARE, Minority Counsel
MATTHEW SCHNEIDER, Staf Assistant

(II)

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STATEMENT OF SUBCOMMITTEE MEMBERS

Wednesday, September 19, 1973

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..

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41

195

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185

73

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.-

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

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

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495

Tuesday, October 2, 1973

Tunney, Hon. John V., U.S. Senator for California, chairman, subcom-

mittee on Representation of Citizen Interests.

WITNESSES

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.--

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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..

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688
492
327

EXHIBITS AND APPENDIX

DOCUMENTS AND CORRESPONDENCE

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363

675

711

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