Scholarship suit continues

PILCOP battles U. in appeal The Mayor's Scholarship case was back in the spotlight last month, as lawyers on both sides of the issue headed to Harrisburg for round two of one of the most watched cases in University history. The Public Interest Law Center of Philadelphia reargued its case against the University and City of Philadelphia before a Commonwealth Court three judge panel in the appeal of a February 1993 Common Pleas Court ruling in the case. In its appeal of the decision handed down by Judge Nelson Diaz, PILCOP argued that it did have legal standing to sue in the case, contrary to Diaz's decision. Diaz ruled that only the mayor or a Mayor's Scholar who attended the University could enforce the disputed 1977 city ordinance that mandates the scholarships. Historically, the Mayor's Scholarship controversy centers around a 110-year old agreement between the city and the University, which gives the University rent-free land in exchange for a set number of scholarships. In its appeal, PILCOP claims that the 1977 ordinance between the University and city of Philadelphia allows for 125 scholarships to be awarded annually, and not 125 overall, as the University contends. Lawyers for the University and city argued that Diaz's decision should be upheld. Dan McGinley, president of the Philadelphia Association of School Administrators, who attended the proceedings, said the court appeared to be leaning in favor of PILCOP. "It seemed PILCOP really presented an excellent case – and the judges were favorably impressed," said McGinley. A three-judge panel, led by Judge David Craig, heard the oral arguments. Arthur Makadon, the University's chief outside counsel in the case, commented that "we were very satisfied [with the proceedings]." He added that he did not want to predict what the court would do. "It is silly to speculate...especially in an appellate court," Makadon said. While Diaz did rule in favor of the University and the city, he called the Mayor's Scholarship program "a sham in the name of a scholarship." Thomas Gilhool, a PILCOP lawyer in the case, agreed and was critical of Mayor Ed Rendell's priorities. "The Mayor is more interested in getting a good price for the civic center than scholarships for students," Gilhool said. Gilhool said he thought the appellate court was "very thoughtful" during the hearing last month. McGinley added, though, that the University's representative did not answer the judges directly. He said that at one point,"the presiding judge seemed angry because the attorney wouldn't read a specific part of the lower court's decision." Neither Gilhool nor Makadon knew when the three judge panel would release its decision.