The Legal Intelligencer Blog

Actual Value Initiative: Bad Move, Philadelphia

By Nolan G. Shenai
Special to the Legal

On the 2000 block of Chestnut Street sits the Philadelphia Housing Authority building – 2012-2014 Chestnut St. to be exact. An old, faded notice is affixed conspicuously to the façade, which is also graced with rotting window frames and broken windows. The city’s Office of Property Assessment records show that the building is owned by the Philadelphia Housing Authority. The symbolism is stark.

City Controller Alan Butkovitz released an analysis of the city’s proposed actual value initiative (AVI) on February 12. His analysis found, inter alia, that the Northern Liberties, Washington Square West, Fitler Square and Graduate Hospital neighborhoods will see significant increases in property tax as a result of AVI. On February 13, Jan Ransom and Sean Walsh of philly.com further reported that a “gentrification bill that would provide relief to longtime residents and a homestead exemption that would lower assessments by $30,000 for homeowners are on the table.” Bad move, Philadelphia.

Though actual numbers are disputed, according to Councilman Bill Green’s website, the AVI proposal “is designed to generate $94 million in additional tax revenue for the school district.” Green’s website further states that AVI “will result in a $200 million to $300 million shift of the city’s real estate tax burden from commercial and industrial property owners to residential ones.” Reducing tax burdens for commercial and industrial property owners is likely good for business. Driving the very people who are contributing substantially to the economic growth of the city to the suburbs, however, is not. It’s not good for the city’s businesses, nor is it good for the city’s housing market.

The city, and businessmen and women in the city, may be having a different conversation if AVI were the last available revenue option for Philadelphia. News flash: It’s not. The AVI proposal, however, is the lazy option. The city currently sits on hundreds of millions of dollars of real estate – in the form of 35,000 city-owned, blighted properties – that it is unable to manage or incapable of rendering habitable. Exhibit A is the PHA’s own 2012-2014 Chestnut St. Instead of creating revenue by selling assets that the city does not appear even to want, Philadelphia is deciding, through the AVI proposal, to put the burden on its residents.

It’s simple, Philadelphia. On the one hand, disposing of city-owned properties creates immediate revenue – far more than the projected $94 million – whereby longtime residents and residents dependent on a homestead exemption can be helped. It creates jobs, attracts businesses and residents alike, and provides for sustained economic growth. On the other hand, the AVI proposal will place an unreasonable burden on city residents, who already have one of the highest tax burdens in the U.S. Fewer people will move into the city and many current residents will move to the suburbs, which over time will significantly and negatively affect businesses and, ultimately, tax revenues.

Philadelphia is trying to use a band-aid to cure the flu, while it holds a bottle of medicine in its other hand. Bad move, Philadelphia.

Fresh Ink: Inside Today's Legal

Welcome to your Friday morning round-up of stories in today’s edition of The Legal Intelligencer. All of the links below will take you directly to today’s stories, or you can head straight over to The Legal’s homepage. (Some stories may require registration or a paid subscription.)

The top story this morning is female lawyers making up less than one-third of attorneys working in the Pennsylvania offices of the state’s 100 largest law firms. As reporter Gina Passarella writes, that number is slightly up from 2011, based on information from PaLaw magazine, but still lower than some expected.

Also above the fold on Page 1, reporter Zack Needles writes that George Zimmerman, the Florida man charged with killing unarmed teenager Trayvon Martin, has sued NBCUniversal Media LLC and three of its current and former reporters for defamation and intentional infliction of emotional distress, claiming they edited audio and misreported the content of his 911 call in an attempt to paint him as a “racist and predatory villain.”

Below the fold on Page 1, reporter Saranac Hale Spencer writes that a federal judge has given final approval to a $4 million class settlement with Washington Mutual.

In more Regional News on Page 3, Saranac Hale Spencer writes that the Third Circuit has upheld a $3.6 million wrongful death judgment for a trucking accident.

As always, our People in the News section is on Page 2, and the top stories from our sister publications across the country make up the Page 4 National News section.

In an Environmental Law column on Page 5, Kevin Haroff and Brad Marten write about what to expect in the next presidential term.

In a Real Estate Law column on Page 7, Alan Nochumson writes that the Superior Court has expanded builder’s liability for subsequent purchasers.

If you have questions or comments about any of today's stories, or our coverage as a whole, we invite you to email any of the reporters directly. We hope you'll enjoy today's Legal.

Fresh Ink: Inside Today's Legal

Welcome to your Wednesday morning round-up of stories in today’s edition of The Legal Intelligencer. All of the links below will take you directly to today’s stories, or you can head straight over to The Legal’s homepage. (Some stories may require registration or a paid subscription.)

The top story this morning is Pepper Hamilton acquiring Louis Freeh’s law firm and consulting group. As reporter Gina Passarella writes, Pepper Hamilton had been working for months with the firm, Freeh, Sporkin & Sullivan, on the investigation into Penn State’s handling of the Jerry Sandusky scandal.

Also above the fold on Page 1, reporter Saranac Hale Spencer writes that antitrust claims against a merger of two of the country’s largest pharmaceutical benefits management companies, Medco Health Solutions and Express Scripts, were dismissed by a federal judge in Pittsburgh.

Below the fold on Page 1, reporter Zack Needles writes that the state Supreme Court has ruled that a Montgomery County trial judge’s jury charge did not instruct the jury that it needed to find intent to harm in order to find that medical battery occurred in a case in which a woman claimed she did not consent to the cesarean section a surgeon performed on her.

In more Regional News on Page 3, Merck has appealed a “pay-for-delay” deal ruled on by the Third Circuit to the U.S. Supreme Court. Also on Page 3, Pepper Hamilton is advising IBM on its push into social networking.

As always, our People in the News section is on Page 2, and the top stories from our sister publications across the country make up the Page 4 National News section.

In this week’s GC Mid-Atlantic column on Page 5, Tiffani L. McDonough writes that health care reform is leading to more wellness initiatives.

In a Real Estate Law column on Page 7, James M. Lammendola writes that the Commonwealth Court considered eminent domain and Act 70 in a recent decision.

If you have questions or comments about any of today's stories, or our coverage as a whole, we invite you to e-mail any of the reporters directly. We hope you'll enjoy today's Legal.

Fresh Ink: Inside Today's Legal and Pa. Law Weekly

Welcome to your Tuesday morning round-up of stories in today’s edition of The Legal Intelligencer, which also includes this week’s edition of Pennsylvania Law Weekly. All of the links below will take you directly to today’s stories, or you can head straight over to The Legal’s homepage. (Some stories may require registration or a paid subscription.)

The top story in today’s Legal is the second in reporter Amaris Elliott-Engel’s series on products liability, as she writes about how the growth of foreign class and mass actions are changing products law.

Also above the fold on Page 1, reporter Saranac Hale Spencer writes that Pennsylvania federal courts are at odds on the adoption of the Restatement (Third) of Torts. A Western District judge applied it in a recent products liability case, while the Middle District recently indicated that the Restatement (Second) is still the guiding force in the state.

Below the fold on Page 1, reporter Gina Passarella writes that the ABA has blessed client disclosure to facilitate lateral moves. The ABA recently looked at giving some guidelines for how to share the information regarding client names to facilitate conflict checks with potential new firms.

In a From the Chief column on Page 3, Hank Grezlak writes that state courts must tread more carefully with the right to vote.

As always, our People in the News section is on Page 2, and the top stories from our sibling publications across the country make up the Page 4 National News section.

In a Law Office Technology column on Page 5, Thomas E. Groshens writes about moving to the cloud and details the capabilities of Evernote and the future of data management.

In a Legal Marketing column on Page 7, Stacy West Clark writes about implementing a 90-day plan to grow your practice.

Today’s lead story in PLW is the rare reargument grant in an Office of Open Records case involving the release of Governor Corbett’s calendar information. As Zack Needles writes, lawyers said it was “almost unprecedented” for the Commonwealth Court to grant reargument.

Below the fold on Page 1, reporter Ben Present writes that an allocatur grant is being disputed in the wake of amendments made to the Medical Records Act.

On Page 3, Amaris Elliott-Engel writes that the Commonwealth Court has ruled that the calendars for Philadelphia Mayor Michael A. Nutter and the 17 members of City Council are exempt from the state’s Right-to-Know Law.

There’s much more inside this week’s PLW, including Samuel C. Stretton’s Ethics Forum, in which he writes about lawyers who fail to pay their bills; James W. Cushing’s Real Estate column on Cheltenham Township’s dispute with the First Korean Church of New York Inc.; and a Personal Injury column on accident reconstruction in vehicle-pedestrian collisions.

If you have questions or comments about any of today's stories, or our coverage as a whole, we invite you to e-mail any of the reporters directly. We hope you'll enjoy today's Legal.

Fresh Ink: Inside Today's Legal

Welcome to your Friday morning round-up of stories in today’s edition of The Legal Intelligencer. All of the links below will take you directly to today’s stories, or you can head straight over to The Legal’s homepage. (Some stories may require registration or a paid subscription.)

The top story this morning is the U.S. Supreme Court upholding the centerpiece of the nation’s new health care law – the so-called individual mandate to buy insurance. As Marcia Coyle of Legal affiliate The National Law Journal writes, it was upheld as a constitutional exercise of Congress’ taxing authority.

Also above the fold on Page 1, reporters Gina Passarella and Zack Needles write that lawyers are focusing on the practical impact of the Affordable Care Act and advising clients on whether it makes sense to offer employees health care come 2014.

Below the fold on Page 1, reporter Saranac Hale Spencer writes that a Harrisburg municipal authority must pay $19 million it owes for technology installed in its garbage incinerator, which helped lead to a declaration of insolvency by the Harrisburg city government in 2011.

Also below the fold on Page 1, Gina Passarella writes that suspended state Supreme Court Justice Joan Orie Melvin has lost her bid to have the entire Allegheny County bench recuse itself from hearing the nine criminal charges against her.

In more Regional News on Page 3, Gina Passarella writes that a midyear report indicates Pittsburgh is one of the hottest legal markets thanks to the “shale rush,” along with North Dakota and Houston.

As always, our People in the News section is on Page 2, and the top stories from our sister publications across the country make up the Page 4 National News section, including much more Supreme Court coverage.

In a Real Estate Law column on Page 5, Bernie Bittner writes that Pennsylvania has approved title insurance rate changes.

In a Litigation column on Page 7, Judy Weintraub and Harrie Samaras write another part in their series on mediation preparation, this time advising not to let the informality fool you.

If you have questions or comments about any of today's stories, or our coverage as a whole, we invite you to e-mail any of the reporters directly. We hope you'll enjoy today's Legal.

Fresh Ink: Inside Today's Legal

Welcome to your Monday morning round-up of stories in today’s edition of The Legal Intelligencer. All of the links below will take you directly to today’s stories, or you can head straight over to The Legal’s homepage. (Some stories may require registration or a paid subscription.)

The top story this morning is the Pennsylvania Supreme Court justices suspending Justice Joan Orie Melvin on Friday after she was charged in Allegheny County with nine criminal counts alleging she used legislative and judicial staff to perform campaign work. Be sure to read through the excellent reporting on display in this article.

Below the fold on Page 1, reporter Saranac Hale Spencer writes that President Obama has made two nominations for the open seats on the federal bench in the Middle District of Pennsylvania. There is no certainty, however, that Matthew Brann, a Republican, and Malachy Mannion, a Democrat, will be confirmed.

In more Regional News on Page 3, reporter Zack Needles writes that a Bucks County jury has sided with the defendant landlord in a case in which a tenant became ill because of a mold problem in her apartment.

As always, our People in the News section is on Page 2, and the top stories from our sister publications across the country make up the Page 4 National News section.

In a Real Estate column on Page 5, James M. Lammendola and Harper J. Dimmerman write that open-ended construction mortgages are in danger of losing lien priority to mechanic lien claimants.

The Law Technology News page covers preservation and proportionality in legal holds.

If you have questions or comments about any of today's stories, or our coverage as a whole, we invite you to e-mail any of the reporters directly. We hope you'll enjoy today's Legal.

Fresh Ink: Inside Today's Legal

Welcome to your Monday morning round-up of stories in today’s edition of The Legal Intelligencer. All of the links below will take you directly to today’s stories, or you can head straight over to The Legal’s homepage. (Some stories may require registration or a paid subscription.)

Today’s top story is Drinker Biddle’s profits per equity partner going up 7.7 percent last year and revenue rising 2.4 percent. As reporter Zack Needles writes, the firm did well by maintaining a balanced practice comprised of 50 percent litigation and 50 percent business.

Below the fold on Page 1, reporter Amaris Elliott-Engel writes about dueling sanctions motions filed over a letter written by a defense attorney in the underlying malpractice case of Sutch v. Roxborough Memorial Hospital to the general counsel’s office for a plaintiff expert’s place of business. The letter said that the expert, Dr. Stefanie B. Porges, “has clearly overlooked the well-established concept of hand-off to an accepting inpatient team and I thought you might want to know that, if this is her position, and plaintiff’s attorneys become aware of it, it could expose the Hospital of the University of Pennsylvania to significant liability.”

Also below the fold on Page 1, reporter Gina Passarella writes that the state Superior Court has upheld a $1.6 million malicious prosecution claim brought against TV personality and producer Nancy Glass by her ex-husband.

In more Regional News on Page 3, reporter Saranac Hale Spencer writes that the assignment of third-party claims to plaintiffs under a tortfeasor release agreement were ruled valid by a federal judge in the case of a York County law firm’s alleged Ponzi scheme.

As always, our People in the News section is on Page 2, and the top stories from our sister publications across the country make up the Page 4 National News section.

In a Real Estate column on Page 5, Harper J. Dimmerman and James M. Lammendola write that the Superior and Commonwealth courts are getting aligned on the Unfair Trade Practices and Consumer Protection Law.

In a Commercial Litigation column on Page 7, Jeffrey G. Weil and Brian Kint write about Rule 23(f) class certification appeals and whether it has been a useful change or slowed down the process of litigation.

If you have questions or comments about any of today's stories, or our coverage as a whole, we invite you to e-mail any of the reporters directly. We hope you'll enjoy today's Legal.

Fresh Ink: Inside Today's Legal

Welcome to your Tuesday morning round-up of stories in today’s edition of The Legal Intelligencer, which also includes this week’s edition of Pennsylvania Law Weekly. All of the links below will take you directly to today’s stories, or you can head straight over to The Legal’s homepage. (Some stories may require registration or a paid subscription.)

The top story in today’s Legal is U.S. District Court Judge C. Darnell Jones II of the Eastern District of Pennsylvania looking at the Defense of Marriage Act’s validity in a Cozen O’Connor benefits disputes. As Gina Passarella writes, the dispute is between the parents of a deceased Cozen O’Connor partner and her wife. Both sides provided briefs on the constitutionality of DOMA but de-emphasized it, instead focusing on the terms of Cozen O’Connor’s benefits plan.

Also above the fold on Page 1, reporter Amaris Elliott-Engel writes that prosecutors in the Catholic Archdiocese of Philadelphia sex-abuse case want to present expert testimony on the process sexual abusers of children use to “‘groom’” their victims.

Below the fold on Page 1, Gina Passarella writes about the ongoing dispute between Elliott Greenleaf and a former partner. The firm has amended its complaint against the ex-partner and his new firm, Stevens & Lee, for his alleged remote access to the firm’s files. It now includes the theft of more files via portable drives and the misappropriation of escrow funds.

In more Regional News on Page 3, Amaris Elliott-Engel writes that a federal judge has ruled that a French firm must comply with federal discovery rules.

As always, our People in the News section is on Page 2, and the top stories from our sibling publications across the country make up the Page 4 National News section.

In a Litigation column on Page 5, Howard J. Bashman writes a guide to delays on appeal, wondering if there is an appellate traffic jam ahead.

In a Real Estate column on Page 7, Martin J. Doyle and Ross E. Bruch write about the number of different ways a recent state Superior Court case on judgment liens can be instructive.

Today’s lead story in PLW is the state Supreme Court hearing oral arguments last week in a case that deals with a last-minute jury substitution. As reporter Zack Needles writes, a principal juror in Bruckshaw v. Frankford Hospital, a medical malpractice trial in Philadelphia Common Pleas Court, was inexplicably replaced with no notice to the attorneys or the judge.

Below the fold on Page 1, reporter Ben Present writes that the state Supreme Court also heard oral arguments last week about whether a Bucks County School District’s board of directors had effectively forced out the school’s tax collectors by lowering their pay rates.

On Page 3, Ben Present writes about a workers’ compensation case for which the state Supreme Court heard oral arguments last week, in which a woman who belatedly applied for several jobs listed in a labor market survey had work “available” to her for the purpose of her employer’s request to modify workers’ compensation benefits.

There’s much more inside this week’s PLW, including Samuel C. Stretton’s Ethics Forum, in which he discusses the ethics of judges using social media; a commentary on Family Law by Andrew D. Taylor, in which he writes that the doctrine of paternity by estoppel is hanging on by a thread; a sex-abuse case in which a step-grandfather was determined to be a “perpetrator”; and the W-2 forms of public school employees are not public records, according to a Commonwealth Court ruling.

If you have questions or comments about any of today's stories, or our coverage as a whole, we invite you to e-mail any of the reporters directly. We hope you'll enjoy today's Legal.

Fresh Ink: Inside Today's Legal

Welcome to your Wednesday morning round-up of stories in today’s edition of The Legal Intelligencer. All of the links below will take you directly to today’s stories, or you can head straight over to The Legal’s homepage. (Some stories may require registration or a paid subscription.)

Today’s top story is the consolidation of four concussion lawsuits against the National Football League in the U.S. District Court for the Eastern District of Pennsylvania. As reporter Zack Needles writes, the U.S. Judicial Panel on Multidistrict Litigation granted the league’s motion to consolidate and centralize the lawsuits, with the potential for 16 similar suits to follow. “We find that these four actions involve common questions of fact,” said John G. Heyburn II, a U.S. District Court of the Western District of Kentucky judge and chairman of the MDL panel.

On the bottom of Page 1 today, reporter Ben Present writes that the speaker of the Pennsylvania House of Representatives has filed a redistricting lawsuit, arguing that the 2001 lines are unconstitutional. The state Supreme Court is expected to issue an opinion within the week explaining its unprecedented decision to reject and remand the maps approved by the state Legislative Reapportionment Commission in December.

In other Regional News on Page 3, a federal judge has allowed a fee dispute between a Delaware County firm and a New Jersey lawyer to proceed. According to court documents, plaintiff George R. Szymanski claimed that after his client fired him and hired defendant Sacchetta & Baldino, a Media, Pa.-based firm, the firm promised him a quantum meruit fee but never paid.

As always, our People in the News section is on Page 2, and the top stories from our sister publications across the country make up the Page 4 National News section.

In today’s Real Estate column on Page 5, Alan Nochumson writes about the U.S. District Court for the Eastern District of Pennsylvania upholding an ordinance requiring rental property inspections to obtain a rental license.

As it is Wednesday, the weekly GC Mid-Atlantic column is in today’s paper on Page7, and it uses the upcoming Super Bowl and its popular advertisements to discuss the importance of corporate compliance and establishing standards for your company.

If you have questions or comments about any of today's stories, or our coverage as a whole, we invite you to e-mail any of the reporters directly. We hope you'll enjoy today's Legal.

Fresh Ink: Inside Today's Legal

By Jaime Bochet
Of the Legal Staff

Welcome to your daily round-up of stories in today's edition of The Legal Intelligencer. Click the links below to access stories directly, or head to The Legal homepage. (Some stories may require registration or a paid subscription.)

Topping our headlines this Monday morning, U.S. Courthouse Correspondent Shannon P. Duffy writes: A prosecutor has no immunity from a civil rights suit alleging that a material witness in a murder case was jailed indefinitely because the prosecutor failed to inform the court that the murder trial was delayed by several months, the 3rd U.S. Circuit Court of Appeals has ruled. "No reasonable prosecutor would think that she could indefinitely detain an innocent witness pending trial without obtaining reauthorization," U.S. Circuit Judge D. Brooks Smith wrote in the 47-page opinion in Schneyder v. Smith.

Below the fold on the front page is an update on the Luzerne County scandal from reporter Zack Needles: The state Supreme Court has approved about $65,000 in restitution for the victims of juveniles whose convictions were overturned following the Luzerne County "kids-for-cash" scandal.

On Page 3, senior reporter Gina Passarella has a "Dealmakers" story: Duane Morris' work on the sale of start-up company client Vicept Therapeutics is evidence that one good deed can lead to another, or, perhaps, one good deal to another.

As always, our People in the News section is on Page 2, and the top stories from our sister publications across the country make up the Page 4 National News section.

The first of our contributed articles today, found on Page 5, is our "Antitrust Law" column by Carl W. Hittinger of DLA Piper, who explains why antitrust defendants should applaud the June 20 U.S. Supreme Court landmark decision Wal-Mart v. Dukes.

Our Page 7 "Real Estate" column by Martin J. Doyle and Bruce P. Bowen of Saul Ewing is about letters of intent. What happens if one or the other party is under the impression that the letter of intent was in fact "the deal," and seeks to enforce this term sheet, following an acrimonious breakdown of negotiations? This can be an attorney's nightmare.

Have questions or comments about any of today's stories, or our coverage as a whole? E-mail me or any of the reporters directly. We hope you'll enjoy today's Legal!

Jaime Bochet is the Magazines & Supplements Editor for The Legal. Follow her on Twitter at @JaimeBochetTLI or e-mail [email protected].