Ledyard's legal fees zip past budgeted amount

February 23, 2010 11:00 pm • Last Updated: February 24, 2010 3:09 am

By By MATT COLLETTE Day Staff Writer

Ledyard - The ongoing federal court dispute with the Mashantucket Pequot tribe over property tax issues and town union negotiations has helped push Ledyard's legal fees account $31,000 over budget, with more than four months still remaining in the fiscal year.Last year, the Town Council budgeted $180,762 for the account, but so far more than $212,000 has been spent, according to data provided by the town's finance director, Marcia Hancock.

Last year, the Town Council budgeted $180,762 for the account, but so far more than $212,000 has been spent, according to data provided by the town's finance director, Marcia Hancock.Of the money spent, the town has spent the most - more than $122,000 - defending itself in court from a lawsuit filed by the Mashantucket Pequot tribe, which claims federal law exempts it from local property tax. The town believes it is entitled to taxes on properties not owned by the tribe, like slot machines leased to Foxwoods by AC Coin, a New Jersey property, and in the casino's restaurants and stores.

Of the money spent, the town has spent the most - more than $122,000 - defending itself in court from a lawsuit filed by the Mashantucket Pequot tribe, which claims federal law exempts it from local property tax. The town believes it is entitled to taxes on properties not owned by the tribe, like slot machines leased to Foxwoods by AC Coin, a New Jersey property, and in the casino's restaurants and stores."I have no control at all over that particular line item. It's unfortunate that it's so darned expensive in Federal District Court, but that's what it is," said Mayor Fred B. Allyn Jr. "But we've been in court on this for an awful long time."

"I have no control at all over that particular line item. It's unfortunate that it's so darned expensive in Federal District Court, but that's what it is," said Mayor Fred B. Allyn Jr. "But we've been in court on this for an awful long time."The lawyers representing the town, Washington-based Perkins Coie, which specializes in suits like the AC Coin case, and Lloyd Langhammer, a local lawyer working on the case, have told the town they expect to go to trial in the near future, Allyn said.

The lawyers representing the town, Washington-based Perkins Coie, which specializes in suits like the AC Coin case, and Lloyd Langhammer, a local lawyer working on the case, have told the town they expect to go to trial in the near future, Allyn said."I think the fees have spiked, and they probably will again as we get close to trial, at least that's what the attorneys in Washington are saying," Allyn said.

"I think the fees have spiked, and they probably will again as we get close to trial, at least that's what the attorneys in Washington are saying," Allyn said.The property tax case is important to the town because it could provide new revenue should the case set a precedent for how casino property not owned by the tribe can be taxed.

The property tax case is important to the town because it could provide new revenue should the case set a precedent for how casino property not owned by the tribe can be taxed. The dispute began in 2006, when the Mashantucket tribe sued Ledyard for trying to collect property taxes on the slot machines it leases from AC Coin, and has slowly dragged on since then."We certainly can't fold on it," said Town Council chairman Terry Jones. "This is an important case for the town."

"We certainly can't fold on it," said Town Council chairman Terry Jones. "This is an important case for the town."The town's second-highest expense was for labor negotiations, where the firm Ryan & Ryan, which has been paid close to $54,000 so far this year, worked on cost-saving deals with five of the town's municipal unions.

The town's second-highest expense was for labor negotiations, where the firm Ryan & Ryan, which has been paid close to $54,000 so far this year, worked on cost-saving deals with five of the town's municipal unions."This year's been particularly harder because of the economy - we negotiated a little tougher," said Jim Diaz, who chairs the Town Council's finance committee. "We relied on Ryan and Ryan to work a little harder for us. But I can say we got our money's worth from that. We negotiated some very good savings."

"This year's been particularly harder because of the economy - we negotiated a little tougher," said Jim Diaz, who chairs the Town Council's finance committee. "We relied on Ryan and Ryan to work a little harder for us. But I can say we got our money's worth from that. We negotiated some very good savings."Jones said that he expects the council's finance committee to meet with Allyn and Hancock to find money to meet the excess costs, likely through a combination of leftover money from other departments and funds from the contingency account. A solution from the finance committee would then need to be approved by the Town Council.

Jones said that he expects the council's finance committee to meet with Allyn and Hancock to find money to meet the excess costs, likely through a combination of leftover money from other departments and funds from the contingency account. A solution from the finance committee would then need to be approved by the Town Council.But Diaz, the finance chairman, said his committee will not give carte blanche approval to overspending on legal bills, especially since there is a growing perception that town officials have become overly reliant on lawyers when it comes to making decisions.

But Diaz, the finance chairman, said his committee will not give carte blanche approval to overspending on legal bills, especially since there is a growing perception that town officials have become overly reliant on lawyers when it comes to making decisions."We see a lot of lawyers around all the time, I know see a lot of lawyers around," Diaz said.

"We see a lot of lawyers around all the time, I know see a lot of lawyers around," Diaz said. "I told Marcia (Hancock, the finance director) and I've told the council that I'm going to look a little harder. Sometimes it seems like the mayor has a lawyer on his hip - I mean, he's come to Town Council meetings with a lawyer."

"I told Marcia (Hancock, the finance director) and I've told the council that I'm going to look a little harder. Sometimes it seems like the mayor has a lawyer on his hip - I mean, he's come to Town Council meetings with a lawyer."So far this year, the town has paid $43,434 to Siegel, O'Connor, O'Donnell & Beck, the firm that serves as the town's primary attorney on municipal issues. That spending amounts to about 70 percent of funds budgeted for the town's general government legal account this current fiscal year, which ends June 30.

So far this year, the town has paid $43,434 to Siegel, O'Connor, O'Donnell & Beck, the firm that serves as the town's primary attorney on municipal issues. That spending amounts to about 70 percent of funds budgeted for the town's general government legal account this current fiscal year, which ends June 30.