Protecting American Taxpayers From Payment of Contingency Fees

2007-05-18Executive Order 13433
Signed by: George W. Bush
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Headline: Bans Contingency Fee Contracts for Federal Legal and Expert Services

What it does: Agencies must stop using contingency-fee agreements for legal or expert witness services and notify the Attorney General and the Director of the Office of Management and Budget of any existing agreements within 90 days.

Real World Impact:
  • Stops new contingency-fee legal contracts across federal agencies.
  • Agencies must tell the Attorney General and budget office about existing agreements.
  • May reduce taxpayer payments for lawyers and expert witnesses.
Topics: government contracting, legal fees, taxpayer protection, federal budgeting

Summary

This order bans contingency-fee payment arrangements for legal and expert witness services for the United States, requiring fees to be reasonable, set in advance, and not tied to case outcomes. It allows exceptions only when required by law and excludes certain tax collection and other specified contracts.

Heads of federal agencies must put the policy into effect, follow the Attorney General's instructions, and notify the Attorney General and the Director of the Office of Management and Budget of any existing contingency agreements within 90 days; the order must be applied consistent with law and available funding.

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