Phillips v. Washington Legal Foundation, 524 U.S. 156, 8 (1998)

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Cite as: 524 U. S. 156 (1998)

Opinion of the Court

Texas who maintains an IOLTA account into which he regularly deposits client funds. Id., at 82. Summers is a Texas citizen and businessman whose work requires him to make regular use of the services of an attorney. In January 1994, Summers learned that a retainer he had deposited with his attorney was being held in an IOLTA account. Id., at 85. In February 1994, respondents filed this suit against petitioners—TEAJF, W. Frank Newton, in his official capacity as chairman of TEAJF, and the nine Justices of the Supreme Court of Texas. Respondents alleged, inter alia, that the Texas IOLTA program violated their rights under the Fifth Amendment, by taking their property without just compensation.

The District Court granted summary judgment to petitioners, reasoning that respondents had no property interest in the interest proceeds generated by the funds held in IOLTA accounts. Washington Legal Foundation v. Texas Equal Access to Justice Foundation, 873 F. Supp. 1 (WD Tex. 1995). The Court of Appeals for the Fifth Circuit reversed, concluding that "any interest that accrues belongs to the owner of the principal." Washington Legal Foundation v. Texas Equal Access to Justice Foundation, 94 F. 3d 996, 1004 (1996). Because of a split over whether the interest income generated by funds held in IOLTA accounts is private property for purposes of the Fifth Amend-ment's Takings Clause,3 we granted certiorari. 521 U. S. 1117 (1997).

II

The Fifth Amendment, made applicable to the States through the Fourteenth Amendment, Chicago, B. & Q. R. Co.

3 Cone v. State Bar of Fla., 819 F. 2d 1002 (CA11), cert. denied, 484 U. S. 917 (1987); In re Interest on Lawyers' Trust Accounts, 672 P. 2d 406 (Utah 1983); Petition of New Hampshire Bar Assn., 122 N. H., at 975-976, 453 A. 2d, at 1260-1261; In re Minnesota State Bar Assn., 332 N. W. 2d 151, 158 (Minn. 1982); In re Interest on Trust Accounts, 402 So. 2d 389, 395-396 (Fla. 1981).

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