MINUTES – December 6, 2001

THE WEST VIRGINIA BAR FOUNDATION, INC.

IOLTA ADVISORY COMMITTEE MEETING

STATE BAR CENTER – CHARLESTON

The meeting of the Bar Foundation’s IOLTA Advisory Committee was called to order by Chairperson Elliot Hicks on December 6, 2001 at the State Bar Center in Charleston.

Members of the Committee in attendance were Adrienne Worthy, Mark Prince, Jim Martina and Dan Hedges. Participating by telephone conference call were Wilda Irvin and Professor Chuck DiSalvo. State Bar Executive Director Tom Tinder was also present.

The first item on the Agenda was a review of the Minutes of the last Committee Meeting which was held on September 6, 2001. A motion was duly made, seconded and passed that the Minutes be approved as presented.

Chairperson Hicks asked for a report on the status of the litigation in Federal Court regarding the IOLTA Program.

It was announced that there has been a favorable decision by the entire 9th Circuit Court of Appeals stating that there is no taking or compensation due through the operation of the IOLTA Program. Relating to the 5th Circuit Court of Appeals decision, a request has been made for the decision by the 3 judge panel to be reviewed by the entire panel. A briefing schedule has been set for this request with specific directions that there be arguments made relating to the 9th Circuit Court of Appeals Decision.

The next item on the Agenda related to a discussion of the activities of the Legal Services for the Poor Symposium. The group is continuing to work on this important topic and its next meeting has been set for December 14, 2001.

Then, a report was given on the merger between the Appalachian Legal Services Programs and the West Virginia Legal Services Plan. Legal documents are being prepared for the Legal Services Corporation, the merger will officially occur on January 1, 2002 and the new organization, Legal Aid of West Virginia has been having meetings of its Board of Directors in preparation for the merger date.

The Committee members then discussed the level of Federal Government funding for the legal services programs. It appears that the same amount – $329 million – will be available for the current fiscal year as for the past fiscal year.

Chairperson Hicks then requested a financial report. As of November 30, 2001, there was $363,253 available for distribution which includes $200,000 in the Rainy Day Fund, $7,500 for the merger of the legal services programs and $5,000 for computer automation of the program. After a great deal of discussion, a motion was duly made, seconded and passed to use $100,000 of the Rainy Day Fund for distribution to the legal services programs, but with no distribution to the special grantees. The rest of the amount – $150,500 – will be distributed through the regular percentage process. Therefore, there will be a remainder of $112,500 after the distributions have been made.

The Committee members then spent an extensive amount of time talking about the operation of the IOLTA Program, particularly as it relates to the banks’ involvement and their charges. Mr. Prince gave some valuable input. After many comments were made, it was decided to get input and approval from the West Virginia Bankers Association on the concept of setting interest rates and fees, that specific guidelines would be set, that banks would be notified of the guidelines and their involvement would be solicited with the appropriate public notice being given to the banks and to the attorneys.

In addition, a motion was duly made, seconded and passed that a letter be sent to all State Bar members from the State Bar and Bar Foundation Officers explaining to them the importance of the IOLTA Program and the need to have the largest interest rate and minimum amount of fees involved in IOLTA accounts and also to make a request to the Bar Foundation for a payment of $1,000 to be used for incentives for law firm staff members in improving IOLTA funding.

Chairperson Hicks then announced that the next meeting of the Committee would be on January 17, 2002 at 11:00 a.m. at the State Bar Center in Charleston.

There being no further business to transact, the meeting was adjourned.