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Washington Legal Foundation v. Legal Foundation of Washington December 9, 2002 (01-1325) return to case listing Case Summary Petitioners challenge the legality of the Washington State's Interest on Lawyers' Trust Account (IOLTA) program and claim that it is a violation of the Fifth Amendment's Takings Clause. Petitioners argue that the Washington State IOLTA program unconstitutionally takes interest generated by their monies placed in IOLTA trust accounts without just compensation. IOLTA accounts pool nominal interests from multiple client accounts together and allocate it to institutions like Respondents, the Legal Foundation of Washington. This organization helps other non-profit groups provide legal aid by funneling money from trust accounts and distributing it. Petitioners brought suit in district court claiming that since the accounts belonged to the clients, the clients deserved reimbursement. The district court dismissed the suit. On initial appeal, the Ninth Circuit reversed and held that the IOLTA constituted an unfair taking without just compensation in violation of the Fifth Amendment. However, the Ninth Circuit, en banc, held that there was no violation of the Fifth Amendment because without IOLTA, clients could not have accrued interest. The opinion of the Ninth Circuit en banc decision is found at 271 F.3d 835. To see the opinion of the lower court, click here. PREDICTED OUTCOME ACTUAL OUTCOME Forecasting Model Expert One Expert Two Expert Three 5-4 to Reverse 5-4 to Affirm 5-4 to Reverse 5-4 to Affirm 5-4 to Affirm VOTING TO REVERSE Stevens O'Connor Souter Ginsburg Breyer Rehnquist Scalia Kennedy Thomas Rehnquist O'Connor Scalia Kennedy Thomas Rehnquist Scalia Kennedy Thomas Rehnquist Scalia Kennedy Thomas VOTING TO AFFIRM Rehnquist Scalia Kennedy Thomas Stevens O'Connor Souter Ginsburg Breyer Stevens Souter Ginsburg Breyer Stevens O'Connor Souter Ginsburg Breyer Stevens O'Connor Souter Ginsburg Breyer return to case listing