Legal Fees Equity Act of 1989

Legal Fees Equity Act of 1989 - Delineates criteria for the award of attorneys' fees to parties in judicial and administrative proceedings against the United States and State or local governments.

Sets a maximum hourly rate of $75 for the award of attorneys' fees in civil actions. Prescribes guidelines under which courts and administrative officers are authorized to deny or reduce attorneys' fees. Requires monetary judgments to be reduced by the amount of attorneys' fees (but not more than 25 percent) where a monetary judgment is awarded and a Federal fee-shifting statute applies.

Requires applications for an award of attorneys' fees to be made within a specified time after a decision has been entered.

Prohibits an award of attorneys' fees where the Government can demonstrate the claims have become moot due to a change in Government policy and the pendency of such action was not a material factor in such policy change. Denies attorneys' fees for services performed subsequent to the time a written offer of settlement is made to a party, if such offer is not accepted and the relief finally obtained by the party is not more favorable to the party than the offer of settlement.

Requires the Comptroller General to report annually to the President and the Congress on the amount of attorneys' fees awarded in judicial or administrative proceedings against Federal, State, or local governments.

Imposes limitations on any executive or military department or any agency, board, or commission respecting the employment and compensation of outside private counsel. Authorizes such a body to retain outside private counsel only upon certification of need by the Attorney General (in accordance with set regulations). Sets a maximum hourly rate at $75.

Requires the Attorney General, after consultation with the Office of Management and Budget, the Office of Personnel Management, and other agencies, to implement regulations governing the circumstances in which Federal agencies can retain outside private counsel.