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Indiana Litigation
NLADA Update, Volume 2, No. 9 "An elemental principle of juris prudence is that courts do not answer non-adversarial, abstract questions of law…. In rare cases the Court might depart from that fundamental principle. However, we do not consider this a circumstance where such an extraordinary departure from the usual course of proceedings is warranted. Much of LSPNI’s complaint revolves around allegations that the federal agency at issue is not following the law and its own policies. Disputes of this nature are more appropriately addressed through litigation, negotiation or the invocation of congressional intervention. To the extent the client confidentiality issues which led to the filing of the petition are contractual in nature (either between LSPNI and the federal agency or between LSPNI and its clients), again, other formal and informal mechanisms are available to resolve those issues." On May 25, 2000, Legal Services Program of Northern Indiana (LSPNI) filed a petition in the Supreme Court of Indiana requesting the Court to clarify the responsibilities of legal services providers under the Indiana Rules of Professional Conduct. The petition sought guidance from the court regarding access to client files by independent public accountants (IPAs) hired by LSC recipients to audit them for compliance with financial requirements and LSC restrictions. In particular, LSPNI requested that the Indiana Supreme Court give instructions as to:
In its petition and supporting brief, LSPNI stated that in past years it allowed its IPA to have access to client files. But it now believes that by doing so, it violated the attorney-client privilege and the Indiana Rules of Professional Conduct. Among other things, the LSC Office of Inspector General (OIG) requires LSC recipients to contract each year with a locally selected IPA to conduct an annual audit and to provide their local IPAs full access to client files in order to have an acceptable annual audit. Arguing that such unredacted access violates the attorney-client privilege and the Indiana Rules of Professional Conduct on client confidentiality, LSPNI refused to grant its local auditor full access, although the program had provided such access in two previous audits. The OIG rejected the LSPNI annual audit, and LSC has threatened LSPNI with suspension of its annual LSC funding, beginning July 1, 2000, if it does not comply with the requirements imposed by the OIG. According to the exhibits submitted by LSPNI with its petition, the Audit Agreement between LSPNI and its IPA states that the IPA “agrees that all information obtained from client case files during the audit will be kept strictly confidential and will not be released to any third party without the express written permission of the client.” Legal Services Organization of Indiana (LSOI) petitioned the Indiana Supreme Court for leave to file a brief as amicus curiae in the case because of the implications of a decision on this matter for other LSC-funded recipients in Indiana. LSOI indicated that it wished to explain the relationship between programs and their local IPAs and address the application of the Indiana Rules of Professional Conduct to this particular situation. |
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