that decision applies with equal force to all of the training centers. Certain issues concerning the timeliness of Western Center's application for 1984 funds and its request for prejudgment interest on its state support grant will also be resolved in this opinion.
The findings of fact and conclusion of law entered by the Court in granting the preliminary injunction in MLRI are adopted for purposes of deciding the pending summary judgment motions. These conclusions are reinforced by recent congressional action, see Pub.L. 98-411, 98 Stat. 1545 (1984), which confirms the correctness of the Court's initial ruling that the LSC's decision to deny refunding violated the FY 1984 Appropriations Act for the Departments of Commerce, Justice, State, the Judiciary and Related Agencies ("1984 Appropriations Act"), Pub.L. 98-166, 97 Stat. 1071 (1983), and the procedural provisions of the Legal Services Corporation Act of 1974 ("Act"), 42 U.S.C. § 2996 et seq. Accordingly, the Court grants the plaintiffs' motions for summary judgment in MLRI and Western Center. The reasons for that determination are set forth below. Where appropriate, the Court refers to its specific findings in MLRI.
The LSC first awarded training grants to the centers in September of 1981.
These grants were for a term of at least one year and provided funds for initial startup costs. The initial training grants were supplemented at the close of 1981. In two letters dated December 11, 1981, the LSC extended the terms of the September agreements and gave each MLRI plaintiff two additional grants. In each case, the smaller grant could be expended during the 1982 calendar year, while the larger grant was for the fifteen month period beginning October 1, 1982 and ending December 31, 1983.
The funds obligated for the latter period were not carryover funds from previous years, and were specifically provided for the operation of the training centers for the last three months of 1982 and all of 1983. Although the award letters stated that the second grant was awarded for the 1982 and 1983 fiscal years, the funds could not be expended prior to October 1, 1982. Under the terms of the second supplemental grant agreements, the regional training centers in MLRI received the following grants: Northeast ($160,000), Western ($170,000); Southeast ($ 130,000), and Midwest ($135,000).
In sum, the Corporation gave the centers advance funding for a two-year period. The grants were explicitly issued pursuant to the Legal Services Corporation Act of 1974, 42 U.S.C. § 2996e(a)(1)(B), (3)(B).
The first type of grant funds general, support-related functions, while the latter covers training and technical assistance functions which relate to the delivery of legal services.
The grant agreements cautioned that they "are awarded on a non-recurring basis and do not affect your program's annual funding level" and that any decision not to renew the grants next year (i.e. 1982) would not "constitute a denial of refunding within the meaning of section 1011 of the Legal Services Corporation Act [ 42 U.S.C. § 2996j]." See, e.g. Rodgers Aff., Exs. 2, 3.
Prior to October 15, 1983, all of the training centers except Western Center submitted applications for refunding of their training center grants. Shortly thereafter, Gregg Hartley, the Director of the LSC Office of Field Services, wrote letters notifying the plaintiffs, including Western Center, that:
Pursuant to the original grant award, Condition No. 12, this is notification that the Corporation will not renew your grant.