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LII was established in 1992 at Cornell Law School by Professor Peter Martin and Tom Bruce with a $250,000 multi-year startup grant from the National Center for Automated Information Research. The LII was originally based on Gopher and provided access to United States Supreme Court decisions and the US Code. Its original mission included the intent to "carry out applied research on the use of digital information technology in the distribution of legal information,...[and t]o make law more accessible." In the early years of LII, Bruce developed Cello the first web browser for Microsoft Windows. Cello was released on 8 June 1993. In 1994 LII moved from Gopher to the Web. Since 2007 the IRS has distributed its IRS Tax Products DVD with LII's version of 26 USC (Internal Revenue Code).
A lawsuit may involve dispute resolution of private law issues between individuals, business entities or non-profit organizations. A lawsuit may also enable the state to be treated as if it were a private party in a civil case, as plaintiff, or defendant regarding an injury, or may provide the state with a civil cause of action to enforce certain laws.