At the NFPA 1995 Annual Meeting, NFPA members adopted a Model Act which provides for the recoverability of paralegal time at market rates in an attorney's application for fees. This model act is for the award of attorney fees for paralegal time at market rates in an attorney's application for fees in a state or federal legislative or judicial arena. The model legislation may be used by NFPA and/or any NFPA member association to propose legislation for the award of attorney fees for paralegal time at market rates in an attorney's application for fees in a state or federal legislative or judicial arena.

The economic advantages derived from employing paralegals are widely known within the legal and business communities. At a time when clients are concerned about the delivery of cost-effective legal services, attorneys are able to provide clients with a higher caliber work product at a lower cost through the use of paralegals. Although state and federal laws are being developed by legislatures and courts, the lack of comprehensive state and federal statutes and/or court rules permitting the recoverability of paralegal fees has precluded a more speedy development of cost-effective legal services to the public. Additionally, although the Courts have awarded paralegal fees at hourly rates which vary according to the complexity of the tasks performed, whether to permit the recoverability of paralegal time in an attorney's application for fees frequently is decided at the discretion of and at a rate determined by the state and federal judiciary. However, if a statute or court rule includes a provision for paralegal services, the risk of statutory misinterpretation in the courts may be avoided and courts may base their awards on the same merits and in the same manner as with attorney services. If state and federal statutes and court rules contain a provision permitting an award of attorney fees for paralegal services at market rates, statutory interpretation by the courts may be more likely to include fees for paralegal services in an award of attorney fees. If the issue of paralegal services is addressed in the statutes and/or court rules, there can be no question of legislative intent.

Only four states, Alaska Supreme Court Civil R. 79, Fla. Stat.  57.104 (1993), NJ Court R.  4:42-9(b) (1989) and Ind. Code Ann.  1-1-4-6 (Burns 1993), have statutes or court rules which permit the recoverability of paralegal time in an attorney's application for fees. Only five federal statutes permit such an award. They are the Civil Rights Attorney's Fee Award Act of 1976, 42 U.S.C.S.  1988; Sherman Anti-Trust Act and Clayton Act, 15 U.S.C.S. Dec. 1, et seq.; Employee Retirement Income Security Act of 1974, 29 U.S.C.S.  1001; U.S. Bankruptcy Code as amended 1978, 11 U.S.C.S. 330(a)(1); Annotation, Award of Attorneys' Fees pursuant to  520(d), 520(f), 525(e) or 703(c), The Surface Mining Control and Reclamation Act of 1977, 30 U.S.C.S.  1270(d), 1270(f), 1275(e), 1293(c).

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