JUSTICE DEGRASSE ACCELERATES
COMPLIANCE REVIEW

March 25, 2004 - New York, New York - At a March 25 hearing, State Supreme Court Justice Leland DeGrasse asked the attorneys for the parties to establish a briefing schedule regarding the extent of the State's compliance with the June 26, 2003 Court of Appeals' order in CFE v. State of New York. The papers to be submitted by the parties presumably would ensure that a full record establishing the extent of compliance is before the court in advance of the court-mandated July 30, 2004 compliance deadline. Justice DeGrasse stated that he expects the state's attorneys to first submit a motion demonstrating the extent to which the state has fulfilled the court order. The plaintiffs would then be entitled to submit a detailed response.

Consistent with numerous statements of the governor and legislative leaders, the court's proposed timeline apparently presumes that the legislature will enact its 2004-2005 budget (with CFE allocations and reforms) well before the July 30, 2004, deadline. Traditionally, briefing schedules for major motions of this type encompass a 45-60 day period.

The court has given the parties a week to confer and attempt to agree on an appropriate briefing schedule. A further hearing on this issue is scheduled for Thursday, April 1 at 2:00 P.M.

At yesterday's hearing, attorneys for the parties also presented arguments concerning plaintiffs' motion for attorneys' fees. Although the State has paid their out-of-state trial attorneys, Sutherland, Asbill and Brennan, over $12 million in attorney fees, they have objected to paying any fees to plaintiffs' counsel who prevailed at trial and on the appeal.