An Act to Recover Legal Fees for Low-income Individuals in Actions or Proceedings
Maine Legislature, Session 131, LD 1259
Committee: Judiciary
Sponsors: SKOLD, TIPPING, BRENNAN, CLOUTIER, DANA, GRAMLICH, MOONEN, PERRY, SHEEHAN, TALBOT ROSS

Legislative Document
No. 1259
H.P. 807
House of Representatives, March 21, 2023
An Act to Recover Legal Fees for Low-income Individuals in 
Actions or Proceedings
Reference to the Committee on Judiciary suggested and ordered printed.
ROBERT B. HUNT
Clerk
Presented by Representative SKOLD of Portland.
Cosponsored by Senator TIPPING of Penobscot and
Representatives: BRENNAN of Portland, CLOUTIER of Lewiston, DANA of the 
Passamaquoddy Tribe, GRAMLICH of Old Orchard Beach, MOONEN of Portland, PERRY of 
Calais, SHEEHAN of Biddeford, Speaker TALBOT ROSS of Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  14 MRSA c. 315 is enacted to read:
CHAPTER 315
LITIGATION COSTS
§1621.  Short title
This chapter may be known and cited as "the Equal Access to Justice Act."
§1622.  Definitions
As used in this chapter, unless the context otherwise indicates, the following terms 
have the following meanings.
1.  Covered individual.  "Covered individual" means:
A.  An individual with a gross household income that does not exceed 400% of the 
federal poverty level; or
B.  An individual who is eligible for an assistance program for low-income households, 
including, but not limited to, the Temporary Assistance for Needy Families program 
under Title 22, chapter 1053-B; the Supplemental Nutrition Assistance Program under 
Title 22, section 3104; the Women, Infants and Children Special Supplemental Food 
Program of the United States Child Nutrition Act of 1966; the MaineCare program 
under Title 22, chapter 855; the municipal general assistance program under Title 22, 
chapter 1161; or child care subsidies under Title 22, chapter 1052-A.
2.  Federal poverty level.  "Federal poverty level" means the nonfarm income official 
poverty line for a family of the size involved, as defined by the federal Office of 
Management and Budget and revised annually in accordance with the United States 
Omnibus Budget Reconciliation Act of 1981, Section 673, Subsection 2.
3.  Institutional entity. "Institutional entity" means any type of business or nonprofit 
entity recognized under the laws of the State, including, but not limited to, a sole 
proprietorship, corporation, limited liability company, association, general or limited 
partnership, joint stock company, joint venture, mutual fund, bank, trust, real estate 
investment trust or joint tenancy.
4.  Prevailing party.  "Prevailing party" means a party that obtains a monetary 
recovery through judgment or settlement, a party that obtains a judgment or settlement 
awarding the party any nonmonetary relief sought in the action or proceeding, a party that 
achieves any relief sought in the action or proceeding because the action or proceeding 
brings about a voluntary change in the other party's conduct or a defendant against which 
no relief is recovered by the plaintiff.
§1623.  Costs and attorney's fees allowed
In any action or proceeding between a covered individual and an institutional entity in 
which a covered individual is the prevailing party, a court shall award only the covered 
individual all recoverable costs described in section 1502-B and reasonable attorney's fees 
incurred by the covered individual in connection with the action or proceeding.  An award 
under this section does not affect any remedy or other fees, costs or expenses otherwise 
recoverable by the covered individual.
§1624.  Presumption; disclosure
In any action or proceeding there is a rebuttable presumption that a party other than a 
covered individual is an institutional entity, unless a court determines that the entity and its 
owners have an average annual net income below $100,000 after reviewing the party's tax 
records for the prior 3 consecutive years.
§1625.  Financial statement required
Each party shall exchange and file a financial statement for a court to determine 
whether a party is a covered individual or an institutional entity.  Each party shall file the 
financial statement at the same time or before the filing of the party's first pleading. 
Sec. 2.  Application.  This Act applies to any action or proceeding that is pending as 
of the effective date of this Act.
SUMMARY
This bill allows, in connection with an action or proceeding, an individual who meets 
certain income requirements to recover costs and attorney's fees from any type of business 
or nonprofit entity recognized under the laws of the State if the individual is the prevailing 
party.