Ballard Spahr, a Philadelphia law firm where Gov. Ed Rendell used to work, has earned millions of state dollars

LCB head’s law firm does $5.7 million in Pa. business

Thursday, March 27, 2008

By Tom Barnes, Post-Gazette Harrisburg Bureau

HARRISBURG — Ballard Spahr, a Philadelphia law firm where Gov. Ed Rendell used to work, has earned millions of state dollars in the past five years doing legal work on a potential Pennsylvania Turnpike lease and other matters.

But it isn’t the only group of legal eagles who are cashing in on their connections to the Rendell administration.

Another Philadelphia law firm, Weber Gallagher Simpson Stapleton Fires and Newby, also has benefitted from lucrative contracts with state agencies. From the time Mr. Rendell became governor in January 2003 until the end of 2007, the firm, usually called just Weber Gallagher, had raked in about $5.7 million in fees.

A key name in the firm’s long list is Patrick J. Stapleton III, originally from Indiana County, who is chairman of the Pennsylvania Liquor Control Board. It’s the powerful agency formed in the 1930s to set wine, liquor and beer policy and prices in Pennsylvania.

Democrat Stapleton, 52, has been on the LCB since 1997, when Republican Gov. Tom Ridge named him. But when former LCB Chairman Jonathan Newman resigned in January 2007, Mr. Rendell chose Mr. Stapleton as the new chairman of the three-member board.

The LCB chairman is paid $68,770 a year, vs. $66,061 for the other two board members. Rendell spokesman Chuck Ardo said LCB members are permitted to have outside jobs.

While Mr. Stapleton’s firm has been paid $5.7 million so far for its outside legal work, Mr. Stapleton said he personally was responsible “for less than 10 percent of the [firm’s] total billings to the state” from 2003 to 2007.

Mr. Ardo said Mr. Stapleton has handled lawsuits involving the state police and the state’s Mcare medical malpractice insurance program. He has defended doctors and other medical care providers sued over malpractice claims.

Mr. Stapleton said Weber Gallagher has offices in more cities than just Philadelphia, including Pittsburgh, Harrisburg, Scranton and Washington, Pa.

Mr. Stapleton said his firm “has been retained by this and previous administrations because of its expertise in highly specialized, technical areas of the law.”

That is similar to the explanation given by Ballard Spahr, which insisted that partner Rick Spahr has expertise in helping the Turnpike Commission float tax-exempt bonds, specialized knowledge that state lawyers don’t have.

Mr. Ardo and Mr. Stapleton insisted there was no political quid-pro-quo for the state business given to Weber Gallagher.

Mr. Ardo said the administration uses numerous outside law firms as the need arises. Since January 2003, the law firm that has gotten the most state fees is Blank Rome, also of Philadelphia, at over $20 million. It had close ties to Mr. Ridge and did work for that Republican administration also.

In second place, during the Rendell years, is Pepper Hamilton of Philadelphia, at $13.5 million. Ballard Spahr was third, at about $10 million. At $5.7 million in fees, Weber Gallagher placed sixth.

In a statement, Mr. Stapleton insisted that the firm “does NOT do any work for the PLCB and does NOT represent any parties before the PLCB.”

Other Weber Gallagher lawyers have done legal work for a state workers’ compensation insurance program, the State System of Higher Education (a system of 14 state-owned colleges) and the state police.

Mr. Stapleton said he’s known Mr. Rendell for more than 25 years. In fact, he said, his first job was as an assistant district attorney in Philadelphia, working for Mr. Rendell, was the district attorney at the time.

“He’s been a close friend and mentor for 25 years,” Mr. Stapleton said of the governor.

According to campaign finance records, Mr. Stapleton’s firm donated $25,000 to Mr. Rendell for his 2006 re-election campaign, and Mr. Stapleton personally gave $3,000.

“As a Philadelphia-based firm, we are appreciative of his efforts and have supported his campaigns because we thought he was a great mayor and would be a great governor.”

Bureau Chief Tom Barnes can be reached at tbarnes@post-gazette.com or 717-787-4254. First published on March 27, 2008 at 12:00 am