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“The problem is it’s other people’s money,” said Fried, who served as solicitor general during the Reagan administration. “It’s a forced contribution.”

Author: By Jaquelyn M. Scharnick, CONTRIBUTING WRITER | Title: HLS Professor Takes On Legal Aid Policy Before High Court | 12/13/2002 | See Source »

But defenders of the IOLTA programs strongly disagree with Fried. Instead, they argue the program is constitutional because the interest generated would not have been returned to the clients anyway.

Author: By Jaquelyn M. Scharnick, CONTRIBUTING WRITER | Title: HLS Professor Takes On Legal Aid Policy Before High Court | 12/13/2002 | See Source »

Fried, however, contends that even though the funds would be absorbed by transaction costs and taxes if they were deposited into individual accounts, private property should be protected even if it does not hold significant economic value.

Author: By Jaquelyn M. Scharnick, CONTRIBUTING WRITER | Title: HLS Professor Takes On Legal Aid Policy Before High Court | 12/13/2002 | See Source »

During the proceedings, Fried conceded that the interest had no calculable value, but said, “It is a taking even if the just compensation is zero.”

Author: By Jaquelyn M. Scharnick, CONTRIBUTING WRITER | Title: HLS Professor Takes On Legal Aid Policy Before High Court | 12/13/2002 | See Source »

Fried is arguing the case for a conservative policy group, Washington Legal Foundation, which represents two clients who said they would have earned $5 and $2, respectively, if the money had been deposited into individual accounts.

Author: By Jaquelyn M. Scharnick, CONTRIBUTING WRITER | Title: HLS Professor Takes On Legal Aid Policy Before High Court | 12/13/2002 | See Source »

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