LEGAL SERVICES CORP. V. VELAQUEZ
531 U.S. 533 (2001)
NATURE OF THE CASE: This was a first amendment dispute over grant restrictions on funds
used to provide indigents with legal representation.
FACTS: Congress enacted the Legal Services Corporation Act, for the purpose of providing
financial support for legal assistance in noncriminal proceedings or matters to persons
financially unable to afford legal assistance. LSC grantees consist of hundreds of local
organizations governed by local boards of directors. The grantee organizations hire and
supervise lawyers to provide free legal assistance to indigent clients. As interpreted by
the LSC and by the Government, grant restrictions prevent an attorney from arguing to a
court that a state statute conflicts with a federal statute or that either a state or
federal statute by its terms or in its application is violative of the United States
Constitution. As an example, grantees could not accept representations designed to change
welfare laws, much less argue against the constitutionality or statutory validity of those
laws. Velaquez (P) filed in the District Court alleging the restrictions on the use of LSC
funds violated the First Amendment. The court denied a preliminary injunction, finding no
probability of success on the merits. The Court of Appeals upheld the restrictions on
litigation, lobbying, and rulemaking 'involving an effort to reform a Federal or State
welfare system,' since all three prohibited grantees' involvement in these activities
regardless of the side of the issue. The court invalidated, as impermissible viewpoint
discrimination, the qualification that representation could 'not involve an effort to amend
or otherwise challenge existing law,' because it 'clearly seeks to discourage challenges to
the status quo. The Supreme Court granted certiorari.
ISSUE:
RULE OF LAW:
HOLDING AND DECISION:
LEGAL ANALYSIS:
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