Wednesday, March 01, 2006

E-mails detail Petro's demands: Can he explain his way out of this one?

Messages show he ordered U. of Akron to change law firms
Wednesday, March 01, 2006 - Cleveland Plain Dealer
Sandy Theis
Plain Dealer Reporter

Akron

-- Just days after taking office in 2003, Attorney General Jim Petro ordered the University of Akron to replace four law firms, even though the university's top lawyer had warned that the changes would be costly and inefficient.

Petro dismissed the university's concerns and ordered much of the legal work, including patent cases, transferred to Roetzel & Andress, a politically wired firm that had to scramble to assemble a patent law department. At least two of the firms said they believe they lost the work because they refused to contribute to Petro's campaign.

The disagreement is detailed in never-before-disclosed e-mails in which university general counsel Ted Mallo pleaded with Petro to keep the four firms, which had represented the university for years. The university's board of trustees voted unanimously to release the correspondence Tuesday in response to a public records request from The Plain Dealer.

After the newspaper asked for the records, Petro advised the university that they were not public.

He said they fell within attorney-client privilege.

Trustees agreed the privilege applied but should be waived.

The e-mails reflect Mallo's frustration as he tried to persuade Petro to change his mind.

In a Jan. 14, 2003, e-mail, Mallo told President Luis Proenza and trustees that a change in patent lawyers "would have a significant education curve and cost."

In a Feb. 13, 2003, e-mail to Matt Cox, who coordinated outside legal work for Petro at the time, Mallo noted that the Roetzel firm did not have a patent department.

Kenneth Preston, associate vice president for research, complained to Mallo in a June 3, 2003, e-mail that Petro's office had given Kent State University flexibility in the use of outside counsel.

"We, on the other hand, appear compelled to put all of our fortunes in the hands of one person in the Roetzel firm," Preston wrote. "And we know that the Roetzel firm is trying to hire young associates to pick up the workload. None of this bodes well for providing us with a high level of experienced assistance."

After Tuesday's trustees' meeting, Mallo said he could not estimate how much money and time the changes cost the university, but he said it was "significant."

Petro specifically ordered the hiring of Roetzel and the replacement of Renner Kenner Greive Bobak Taylor & Weber, an Akron-based firm that specializes in patent and other types of intellectual property law.

In the e-mails and interviews, General Counsel Mallo praised Ray Weber, the Renner lawyer who oversaw the patent work, and expressed concerns that Roetzel lacked the expertise to do patent work in the areas of polymers, engineering and chemistry.

Although attorneys gen eral tend to honor state agency and university re quests for out side lawyers, the attorney general makes the final call.

Petro vehemently denies any link between political donations and special counsel work, but Weber has maintained that he lost the business because he ignored the Petro campaign's fund-raising requests.

He and fellow Akron lawyer Jack Morrison, who also lost special counsel work to Roetzel, said they were interviewed by the FBI last month, and both said they told agents they believe Petro punished their firms for not supporting his campaigns.

Morrison said that Petro personally told him that his firm, Amer Cunningham, would have to "sit out" for a year but could earn the business back through donations.

Morrison is a member of UA's board of trustees but abstained from Tuesday's vote.

The flap over the pricey patent lawyers is the latest in a string of controversies over Petro's system of hiring private lawyers, known as special counsel, to help with state legal matters.

For decades, Ohio attorneys general have used special counsel appointments to reward political allies and contributors. Under Petro, however, some have complained that he and his associates have used heavy-handed tactics to raise money. Morrison was among the first to complain publicly.

Petro, who is seeking the Republican Party's nomination for governor, has called for a dramatic overhaul of public colleges, saying they are financially inefficient and offer too many duplicative degree programs.

Even in light of the warnings in the e-mails, Petro's office on Tuesday continued to defend his decision to spend more to replace the law firms.

Petro's first assistant, Michael Grodhaus, issued a statement saying that he recommended replacing the Summit County firms "rather than have any political party chairman make those decisions for us."

Grodhaus was referring to the firms' ties to Summit County Republican Party Chairman Alex Arshinkoff, a longtime political foe of Petro's.

Petro has suggested that Morrison manufactured his story at Arshinkoff's behest.

Morrison is Arshinkoff's personal lawyer, and Weber has been a reliable donor to the Summit County GOP.

The other two firms that were replaced are Brouse McDowell and Roderick Linton.

To help counter Arshinkoff's clout in Summit County, Petro formed an alliance with Roetzel, a powerful law firm that sits atop Arshinkoff's enemies list.

The firm has hosted fund-raisers for Petro, and its lawyers gave $53,500 to Petro's campaigns from 2002 to 2004. Once Petro became attorney general, the firm became one of the leading recipients of state legal contracts. In fiscal 2004, Roetzel placed No. 3 in total state legal business, getting $1.6 million in work. It had never before placed in the top 10.

Morrison's firm, Amer Cunningham, saw its special counsel work drop from $356,827 in fiscal 2003 to $29,368 last year, state records show.

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