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3 L. Action 1 (1968-1969)

handle is hein.journals/lwaction3 and id is 1 raw text is: A MONTHLY ACCOUNT OF THE LEGAL SERVICES PROGRAM LS'P Finds 800 Duped; Business School C osed A buisiness-vocational school in Hialeah, Floridla, that inducned 800 poor students to enroll and to sign promissory notes worth half a million dollars has been closd down through the efforts of the Ecn romic OJpportunity Legal Service Progr:am in Miamai. As a result of the LSP' wourk, two< banks have ruled that mo~re than $00,.000 in promissoryx notes negotiated to thenm are unenforceable. An etinmted $10O,000 of the $500,000 face value of the notes had be en paid by the Negro and Spauish-speaking yunng pople who were taken in by the scnol Many who enrolled in the school dropped out after a fewr months and defaulted on the payments. Howard W. Ditxon, dlirector o f the iaumi pro- grnam, said it is drafting a class suit osn behalf of the iiized students:1 against the banks holding the. promissory notes. The aim wil b e to rescind the no esuad ton obtain. the return of money paid to the school and dlamages. As a sl of a six-nmonth investigatio.n con- ducted by lair C Shick, 29, of Philelphi:a, a Reginual IHebe Smith Fellow working in the pro- gram's consumer protection unit, two top excu7- Poor Mu uUt e Food Money To Pay Rent, CRLA Charges Por eople in Californi:a are going humnr be mo of thirwlfr aloten a tate Deart- mneio oilWlaerfrehsbe odb a Caionm ua Lea Asitnce (CRi .td t:orng ey.r osig llcaios i Motee Cont (nd Turn 1: RET, ,. 4 tives of the banl:- have been is-missed beaen o f their cofnection with the now-funct business school. 1t was after Shick turned over information to the Dadle Couinty State's Attorney< that the school' adviertising w\as stoppedl by injunction in January, an action that1 was not contested by the school Shick said he found that one of the banks, lo- cated in Mia:mi Beach, had put up the moeyt to get the scoli started twoa years ago and was the largest financing source for students. A vice presi- dlent of the bank wtas dismissed after his involve- mntn wth the scthoo became known. Presure lUrought upo n this bak led to a halt in the pur- chase of note from the school and investigation into collusion between the school and bank onfiers. With its advrii ng and financing sources dried up, the school hadito shut downe. Turn to SCOOL p. C The Welfare Seene: Prior Hearings, Grant (e lingS. ub. titu P h er Rent Needs Discussed inside. Court Bars Retaliatory Evictions The UIS C 1ourt o f Appeals for the D itrct of Colmia ruled Mayi 17 that landlords have nolegal right to elict tenants in etaliation for the report ing of housing code violations Te split decision by a three-judge court applie only in DC bt lit is expected to hae nationwid implications Judge ,L elly Wright, who w\roe th decison fonda Htt retaliatory eviction are in basi conflict ith the purpose of the houn codes It was the second major decison in tean's right on by Lieal Serice lawyers in the past thre mnths. I)etails of the decisio witll be in th nex isse of Law in Acton. I A COMMNIT AC ON PROGRAM Vo.J - Noc 1 MAY 1~ y i968 R

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