National Legal and Policy Center -- Legal Services Accountability Project
 
LSAP REPORT
 
Issue # 45 -- December 6, 1996


 
Legal Services Abuses in Iowa

The federal legal services program in Iowa has long had a reputation for misusing taxpayer dollars to file ideologically-motivated lawsuits that have little to do with meeting the poor’s real legal needs. These controversial cases include opposition to welfare reform, fighting the seizure of drug dealers’ property and defending violent prisoners. In addition, Iowa legal services has spent 20 years advocating taxpayer-funded sex-change operations, an issue of questionable relevance to the poor.
 

Legal Services Seeks Medicaid Funding for Sex Change Operations

Legal Services Corporation of Iowa (LSCI) is most notorious for its successful advocacy in the 1970s of Medicaid-funded sex-change operations. These sex change cases have been often cited by critics of the federal legal services program as an example of how activist lawyers misuse taxpayer dollars to pursue controversial agendas. Supporters of the LSC on the other hand complain that these cases in particular have been overly cited and are not indicative of the real work of legal services. However,  the Legal Services Corporation of Iowa (LSCI) has in fact aggressively continued its campaign on  behalf of medicaid-funded sex-change operations into the ‘90s. In 1994, the Iowa Department of Human Services proposed a regulation to reverse the policy of having the state pay for sex-changes. The state was prompted into action after yet another individual represented by LSCI got Medicaid to pay $13,600 for the procedure. The state argued that it shouldn’t have to expend limited resources for sex-changes when it can’t even provide essential care for those in need. However, the LSCI lawyer insisted that Medicaid should pay for sex changes because their cost is just a “drop in the bucket.” Even the pro-LSC Des Moines Register  supported the state, calling the operation “exotic and expensive.”
 
See The Des Moines Register, December 12 1994, pg. 10
 

Opposes Welfare Reform

The Legal Services Corporation of Iowa (LSCI) has strongly opposed Iowa’s attempts to reform welfare and encourage recipients to become self-sufficient since the state began experimenting with reforms in 1993. That year, the federal government granted waivers to the state to implement its Family Investment Program (FIP). The centerpiece of Iowa’s welfare reform, the FIP requires welfare recipients to sign agreements detailing how they will achieve financial self-sufficiency by either getting a job, entering a job training program or going back to school. Recipients who refuse to sign the agreements are penalized by having their benefits reduced  for a three month period, reduced again in the next three month period if still in non-compliance and losing all benefits after nine months. LSCI steadfastly opposed this self-sufficiency plan from its inception despite the fact that the plan had overwhelming bipartisan support. Iowa Senator Tom Harkin (D) even praised the plan saying it could serve as a model for other states.  Nevertheless, LSCI objected to the policy on the grounds that making welfare recipients work somehow violates federal laws against illegal medical experiments on humans.
 
See A. Thomas, “Attorney Attacks Welfare Contracts,” The Des Moines Register, May 15 1993, pg. 1
 

Sues State for Disciplining Violent Prison Inmate

In 1993, Legal Services Corporation of Iowa (LSCI) sued the state prison system for disciplining a violent and dangerous inmate. LSCI’s client, Ron Cooley, had been disciplined for a variety of infractions in the late ‘80s including assault and other disruptive conduct. In one of the incidents, Cooley threatened to break the necks of the prison guards for not bringing him a telephone in a timely manner. In another incident, Cooley again threatened the guards after confiscating prohibited items in his cell. LSCI tried to overturn the punishments on the grounds that his threats shouldn’t have been taken seriously. They contended that the incident where Cooley said he would break the guards’ necks if he was “on the street” did not constitute a real threat because he was not on the street when he made the threat. Likewise, LSCI argued that Cooley shouldn’t have been punished for telling one of the guards who confiscated his contraband property that “You need what that son of a @!&* got down at the gym”, a reference to an inmate assaulted the previous day. LSCI claimed that the statement did not subject the officer to abusive or defamatory language. A US Appeals Court ruled against legal services.
 
See Cooley v. Grossheim, 994 F.2d 842, US App. Ct., 1993
 

Fights Efforts to Seize Property of Convicted Drug Dealers

In 1991, the Legal Services Corporation of Iowa (LSCI) tried to stop the federal government from seizing the house that convicted drug dealers used to commit their crimes. Throughout the 1980s, John and Judy Bly systematically used their home to buy, sell and consume illegal drugs. In March 1988, police raided the house and arrested the Blys after discovering illegal drugs and drug paraphernalia.  Both Blys were later convicted of serious drug charges. In 1990, the US Attorney’s office initiated forfeiture proceedings of the Bly’s property under federal law which requires that all property used to commit or facilitate a felony be forfeited. However, LSCI unsuccessfully tried to keep the property in the Bly’s hands by resorting to a litany of  often far-fetched arguments. For instance, legal services argued that it was unconstitutional for the government to seize the Bly’s house because even though they had used it to deal drugs, they had legitimately acquired it. The federal district court judge rejected the claim noting that legal services lawyers failed to “explain how using properly acquired real estate to facilitate drug transactions is constitutionally protected conduct.”
 
See United States v.  One Parcel of Property, 786 F. Supp. 1497, US Dist. Ct., 1991



 

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