[Weekly Compilation of Presidential Documents Volume 30, Number 19 (Monday, May 16, 1994)]
[Pages 1057-1058]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Memorandum on Use of Private Attorneys by the Department of Agriculture

May 11, 1994

Memorandum for the Secretary of Agriculture, the Attorney General

    This directive sets forth the terms and conditions under which the 
Department of Agriculture will exercise the authority granted to the 
Secretary of Agriculture pursuant to section 331(c) of the Consolidated 
Farm and Rural Development Act (7 U.S.C. 1981). That authority permits 
the Secretary of Agriculture to contract with private attorneys and use 
Department of Agriculture attorneys for legal services necessary to 
prosecute and defend any claims arising under subsection (b)(5) of 
section 331 of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1981), concerning farmer program loans made by the Farmers Home 
Administration.
    This directive permits, subject to the conditions set forth below, 
foreclosure, deficiency judgment, and debt collection litigation by 
private contract attorneys arising from Farmers Home Administration 
farmer program loans and loan guarantees made pursuant to the 
Consolidated Farm and Rural Development Act, 7 U.S.C. 1921 et seq. 
(hereinafter referred to as ``actions''). The Department of Agriculture 
will refer all other matters arising under the Consolidated Farm and 
Rural Development Act, including all matters in bankruptcy, claims of 
fraud, and appellate proceedings to the Department of Justice. The 
Department of Justice will prosecute such referrals expeditiously, and 
may, in its discretion, with the Department of Agriculture's 
concurrence, refer any action back to the Department of Agriculture.
    The Department of Agriculture agrees that the decision to contract 
with private attorneys for prosecution of actions will be made only upon 
its determination that (a) the private attorney will provide competent 
and cost-effective legal representation and (b) representation by the 
private attorney will accelerate or improve the process by which the 
actions are brought to conclusion.
    Thirty days prior to initiating the process to contract with a 
private attorney for prosecution of actions, the Department of 
Agriculture will inform the appropriate United States Attorney of the 
intent to contract and the basis for such decision.
    Prior to referral by the Department of Agriculture of any action to 
a private attorney, or Department of Agriculture attorney, the 
Department of Agriculture shall notify the Department of Justice. The 
Department of Agriculture shall require that the private counsel or 
Department of Agriculture attorney promptly provide to the appropriate 
United States Attorney copies of all significant pleadings, motions, 
memoranda, orders, and opinions filed in State or Federal court.
    Should any legal or policy issue of general importance to the 
Government arise that pertains to the conduct of actions under this 
agreement, the Department of Agriculture will ensure that the private 
contract attorneys or Department of Agriculture attorneys are made aware 
of guidance issued by the Department of Justice.
    If the Department of Justice determines that the interests of the 
Government are better served through representation by the Department of 
Justice because there exist any significant factors, such as 
counterclaims, claims for equitable relief, multiple Federal agency 
interests, or significant legal or factual issues, of major importance 
to the Government, the Department of Agriculture will promptly withdraw 
the action from private counsel or the Department of Agriculture at- 

[[Page 1058]]

torney and refer the action to the Department of Justice, for 
expeditious disposition. The Department of Agriculture will reserve the 
right to withdraw any case from the control of a private attorney.
    The Department of Agriculture will fulfill its obligations under 
this directive through its Office of General Counsel. The Department of 
Justice will fulfill its obligations under this directive through the 
Civil Division or such other office as the Attorney General may direct.
    The Department of Agriculture will provide to the Department of 
Justice a quarterly report tracking the status of all actions within the 
scope of this directive being pursued by the Department of Agriculture 
attorneys and private contract attorneys, including summary statistics 
to permit evaluation of this directive.
    The Department of Justice will provide to the Department of 
Agriculture a quarterly report tracking the status of all actions within 
the scope of this directive being pursued by the Department of Justice, 
including summary statistics to permit evaluation of this directive.
                                            William J. Clinton

Note: This memorandum was released by the Office of the Press Secretary 
on May 12.