Robert E. Levy
Partner
201-896-7163 rlevy@sh-law.comFirm Insights
NJ Federal Courts Will Run Out of Funding This Week
Author: Robert E. Levy
Date: October 16, 2013
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Federal courts have been operating on fumes since the government shutdown began on October 1. This week, the reserve funding is scheduled to run out.
While the U.S. District Court for the District of New Jersey first projected that fee income and other resources would enable it to continue to function for ten days, further funding restrictions now will allow the courts to operate through Friday.
“The Judiciary has severely restricted spending during that period so that limited additional funding now exists,” the court said in an announcement “Spending rates and fund balances will continue to be monitored closely in hope that adequate funds may be available to allow courts to operate through the end of the work week — October 18.”
Even without funding, New York and New Jersey federal courts will not shut their doors. Under the Anti-Deficiency Act, certain “essential” government functions may continue in the absence of federal funding. The statute’s definition of “essential work” includes activities to support the exercise of Article III judicial powers under the U.S. Constitution, such as the resolution of cases. Accordingly, all criminal cases and most bankruptcy cases will likely proceed, while civil litigation will be delayed.
“The Constitution tells us what we have to do and we can’t control our workload. It walks in the door, whether we’re funded or not funded,” said U.S. District Court Chief Judge Loretta Preska in New York. She has ordered all civil cases except those already in trial on hold until further notice.
To keep the courts operating, “essential employees” will work without pay. In Southern District of New York, Judge Preska already signed an order that categorized all personnel as “essential.” Other federal courts in New York and New Jersey have yet to make an official decision.
If you have any questions about the government shutdown or would like to discuss how it may affect your business, please contact me, Robert Levy, or the Scarinci Hollenbeck attorney with whom you work.
- Practices: Litigation, Commercial Litigation - Business Litigation Attorney
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