Posted on Wed, Jul. 1, 2009
By Mario F. Cattabiani
The Pennsylvania Supreme Court agreed yesterday to hear a legal challenge over whether the Rendell administration should be allowed to use a Texas law firm to pursue a case against a drugmaker on behalf of Pennsylvania.
Bailey, Perrin, Bailey L.L.P., of Houston, was hired in 2006 by the administration for a civil lawsuit against Janssen Pharmaceuticals, a subsidiary of Johnson & Johnson, over its antipsychotic drug Risperdal. The state accuses the company of improperly marketing the drug for uses not authorized by the federal government.
The Titusville, N.J., company denies the allegations and in January asked the state's high court to force Gov. Rendell to dump the lawyers, alleging that he wrongly had entered into an inappropriate contingency arrangement allowing the firm to profit if it won. In court papers, the drugmaker also suggested that pay-to-play politics might have been a factor in the decision to hire the firm.
Bailey's founder, F. Kenneth Bailey, had given the governor more than $91,000 in campaign contributions and airfare in 2006 while Rendell was seeking reelection and as the firm was trying to land the no-bid legal contract. Rendell has denied any impropriety in the firm's hiring and insisted that the lawyers would not be paid unless they won the case for the state. Justices agreed yesterday to hear the case, but the court had not yet set a schedule for oral arguments.
"We believe that we are on solid legal footing and look forward to our opportunity to make our case before the court," said Chuck Ardo, Rendell's spokesman.
Attempts to reach lawyers representing Janssen were unsuccessful yesterday.
Contact staff writer Mario F. Cattabiani at 717-787-5990 or mcattabiani@phillynews.com.
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