Barr Offers Hyde Solution

On June 13, 2005, an article by Evan Barr of the New York office, “Fix the Hyde Amendment,” was published in the National Law Journal. In it, Barr addresses the Supreme Court’s May 31 reversal of the criminal conviction of Arthur Andersen LLP that ruled that the accounting firm was denied a fair trial.

Barr proposes a simple legislative fix that might help similarly situated companies and deter overzealous federal prosecutors: the Hyde Amendment.

Under this federal statute, a "prevailing party" in a "federal criminal case (a defendant who is acquitted at trial or whose conviction is reversed on appeal) may be entitled to government compensation for the legal fees and costs incurred in defending itself, provided that a court determines that the position of the prosecution was 'vexatious, frivolous, or in bad faith.'"

Since the statute currently applies only to vindicated individuals and corporations or partnerships with fewer than 500 employees whose net worth does not exceed $7 million, all Congress would merely have to vote to remove the cap.

Read “Fix the Hyde Amendment” here.