Whether § 718 of the Emergency School Aid Act applies to a school-desegregation fee dispute that was pending on direct appeal when the statute took effect, even though the underlying legal services were performed earlier.
Holding
Yes. Section 718 applies to this pending case and may support an award for legal services performed before the statute’s effective date.
Reasoning
The Court applied the general rule from United States v. Schooner Peggy and Thorpe v. Housing Authority: a court ordinarily applies the law in force when it renders its decision. The relevant question was therefore not simply whether § 718 operated retroactively on prior services, but whether the new statute governed a fee award still under direct appellate review when Congress enacted it.
Congress did not direct that § 718 be limited to services performed after its effective date. Although the legislative history was not explicit, it gave at least implicit support to applying the provision in pending cases: Congress replaced proposed language that expressly would have limited fees to services rendered after enactment. The Court declined to read back into the enacted statute a limitation Congress had removed.
Applying § 718 caused no manifest injustice, which is the recognized exception to the usual rule. This was not an ordinary private dispute but desegregation litigation involving a public school board and children seeking vindication of their constitutional right to nondiscriminatory education. Successful plaintiffs also served the Board and the broader community by helping bring the school system into constitutional compliance.
The School Board had no matured or unconditional right to retain public funds free from conditions imposed by Congress. Nor did § 718 create a new substantive desegregation duty or impose an unforeseeable burden: from the beginning of the litigation, the Board faced potential liability for fees under existing equitable theories. The statute supplied an additional basis for a potential fee obligation rather than altering the Board’s underlying constitutional responsibilities.