$ 1.1 Million Dollars in the Public Interest, or in Self-Interest?
Environmental Defense Center Takes in Over $1 Million Dollars in Attorney's Fees from Filing Lawsuits
Against Federal, State, and Local Government Agencies
(Santa Barbara) ) - According to IRS tax documents recently obtained by Public Interest Watch (PIW),
between 1997 and 2003, the Environmental Defense Center (EDC), a Santa Barbara, California, based 501(c)(3)
non-profit environmental law firm, captured over $1 million dollars in tax-free attorney's fees
from settlement agreements stemming from lawsuits the organization filed on behalf of the public
interest (see
http://www.guidestar.org/partners/cadoj/docs.jsp?npoId=573284 ).
Unfortunately for the public, the majority of these lawsuits, based on cases listed by EDC, were filed
against, and settled with, federal, state and local government entities. Suits listed, included, but were
not limited to, four against the City of Santa Barbara, four against the County of San Luis Obispo, three
against the United States Department of Interior, and two against the Environmental Protection Agency, all
of which apparently used taxpayer dollars to pay EDC's attorney's fees as part of case settlements.
EDC, which "seeks attorney's fees in all cases filed", is not alone when it comes to demanding reimbursement
on the taxpayer's dime. The National Resources Defense Council (NRDC) and the American Civil Liberties Union
(ACLU), have both sought attorney's fees when filing cases against government entities. Not surprisingly, this
form of revenue collection has paid big dividends, often bringing in higher yields than charitable
contributions from supporters.
Thus, "public interest" non-profit law firms, such as EDC, sock it to taxpayers twice, first by being allowed
to operate their law firms tax-free, and second by collecting attorney's fees, tax-free, from the very people
they are supposed to be representing, the public.
Clearly, this practice is ripe for government reform, but until legislation is enacted to prevent this type of
activity, PIW challenges EDC, and every other non-profit public interest law firm who demands attorney's fees
from taxpayer funded government entities, to operate like the majority of charities do, from charitable
contributions, instead of litigated bounties.
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PIW is a 501(c)4 tax-exempt organization, which means contributions to PIW are not tax-deductible. Initial
funding for PIW has been provided by business organizations.
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