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Tuesday, May 11, 2010

Callahan's Karoly Connection

This comes directly from LV Congressman Charlie Dent's camp. Usually, when I get a news release, I reword it. Not this time. It makes a point that needs to be made. This will also make some people angry with me. Oh, well.

The recent conviction of attorney John Karoly by a Federal court ends a chapter on one of the Lehigh Valley’s most controversial trial lawyers. But no Karoly retrospective is complete without highlighting his greatest “success” – which came at the hands of John Callahan’s ineptitude and cost Bethlehem taxpayers more than $8 million.

In 2004, the City of Bethlehem was the defendant in a civil trial waged by John Karoly over the 1998 shooting of suspected drug dealer John Hirko by Bethlehem police. After months, the jury deadlocked – meaning the city as defendant would win the case. But instead of accepting a hung jury – and forcing Karoly to settle or start his lawsuit over again – Callahan inexplicably allowed a split-verdict “poll” vote of the jurors. The city lost the vote, 10-2. That’s right; John Callahan snatched defeat from the jaws of victory.

At the time, Democratic City Council President Mike Schweder called Callahan’s action “the most stupid decision anyone in my lifetime has made.” 1 Callahan then met with Karoly to negotiate a settlement, and in the end Bethlehem taxpayers had to pay $7.89 million plus other costs.

What were Callahan’s excuses? ''Our defense team confidently believed we were looking at a favorable verdict,'' Callahan told the Morning Call at the time.1 Of course, the city’s “defense team” primarily consisted of the city’s former insurance company, which only stood to lose $500,000 regardless of the final outcome, with city taxpayers on the hook for anything over that amount. During the six-plus months of the Hirko trial, Callahan was a City Councilman, mayor-elect and ultimately mayor. Yet as far as anyone can tell, he did not even once bother to stop in and observe the proceedings of the Hirko trial at Allentown’s Federal Courthouse for himself.

Despite this lack of first-hand knowledge, and despite Karoly’s reputation as an aggressive attorney, John Callahan felt that he and his solicitor were “perfectly capable of holding our own with John Karoly.”2

And after all was said and done, Callahan proposed a bond issue to pay for the settlement – conveniently, with the largest payments coming AFTER his time as mayor would be long over, and adding $800,000 more in costs to the taxpayers. 3

“The Hirko decision was John Callahan’s first opportunity to make an important decision on behalf of Bethlehem taxpayers, and unfortunately it set the pace for those that followed – he failed to do his due diligence, exercised poor judgment, displayed arrogance, negotiated poorly, and ultimately cost the city money it didn’t have,” said Dent campaign manager Shawn Millan. “Then he tried to pass the cost for his own failure onto future generations. No wonder Nancy Pelosi wants him in Washington.”

But lest anyone think Callahan’s performance wasn’t appreciated by some people, he got high praise from one individual – John Karoly, who said Callahan had "political courage.”

Notes:

1 Matt Assad, “City bet judge, jury were on its side,” the Morning Call, April 5, 2004

2 Elliot Grossman, “How Hirko settlement came to be,” the Morning Call, April 1, 2004

3 Chuck Ayers, “Hirko deal means job cuts,” the Morning Call, April 20, 2004

26 comments:

Anonymous said...

Im sure this is the first of many interesting stories we will hear about John Callahan's mismanagement over the course of this election.

Charlie will win big.

Lighthouse said...

Was shocking decision then, and shocking to re-read about it now.

Karoly has finally met some poetic justice.

As for Callahan, he was rewarded by Bethlehem voters in 2006 when this should have been fresh enough in voters memories.

Lighthouse said...

correction 2005 election...sworn in 2006

Anonymous said...

Lehigh Valley "Independent" blog is not going to like this.

Gasp!

Anonymous said...

how much money did Callahan take from Karoly over the years?

How about a legal opinion on the matter Bernie? Leave the politics aside: was it wise for Callahan to settle or should he have taken it to trial?

Karoly was a fantastic lawyer and a terrible man. He screwed Easton too. I'm not sure that I will ever blame a politician for getting screwed by a lying crook.

Anonymous said...

does charlie dent still take political contributions from Bob Asher. This was the guy who cooked up one of harrisburg's greatest political corruption rings in history? I wonder if Dent still accepts the Candyman's money. Talk about lapses in judgement.

Anonymous said...

Anon 4:52 and 4:59 seem to want to divert everyone's attention from the subject of the post. Must be hitting close to home Bernie.

Anonymous said...

Fair and accurate depiction of history as it relates to this case. Have to agree with Dent that Pelosi wants this type of person to be making decisions for the country.

Anonymous said...

I hope Karoly DOES drop the soap alot. He earned it.

Anonymous said...

it would be so much easier on all of us if Dent's campaign site just linked directly to your blog...

Anonymous said...

In fairness to Callahan he had his chief legal eagle Jack Spirk advice him to take the deal.

I realize he is an Ohare buddy but Callahan depended on sound legal advice. In this case he was let down.

Anonymous said...

"Callahan depended on sound legal advice. In this case he was let down."

Sounds like exactly the kind of advice that he decided to take when he made his decision to run for Congress.

Lighthouse said...

Speaking of Callahan, he also is featured prominently on the cover of Benol's campaign "book" that was mailed out...a pretty hard hitting anti-Dent mailing aimed at Republican purists in the primary. For an underdog strike the week before an election, I thought it was pretty effective. Must have been expensive. Lots of "facts" with no big pictures of the candidate (actually no pics)shaking hands with veterans or seniors as Dent's mailers have had in previous elections.

Maybe its just me, but this year's campaigning (even for Governor) has been so low-key, and devoid of voter enthusiasm, the anti-incumbant "protest vote" might have more impact than Dent thinks as he has focused on Novemeber and ignored May. I think it is highly unlucky that Benol would win, but it certainly would be a shock to see a Trumanesque picture of him holding up the Morning Call with the headline "Dent Wins!"

Bernie O'Hare said...

Lighthouse, One of the most idiotic things a cadidae could do is send a lenthy tome to voters. Most won't read it. Those that do will miss the election.

Anonymous said...

The police used excessive force and abused their power. The city should pay. Does Dent believe in an authoritarian police state?

Anonymous said...

O'Hater,

So was Chuckles Dent an idiot for sending out lengthy tomes during the 2008 election?

Anonymous said...

Pretty boy Callahan committed one of the biggest blunders in Bethlehem history and is rewarded by the party of incompetent crooks by being their candidate for Congress. Why stick taxpayers with a measley $8 million when he can throw billions away in Washington?

Anonymous said...

This is shocking. This is America. The insurance company should have had priority over the city and the defendant and plaintiff. Why did the insurance have to lose so much money? Something should have been done!

Anonymous said...

This is shocking. This is America. The insurance company should have had priority over the city and the defendant and plaintiff. Why did the insurance have to lose so much money? Something should have been done!

Lighthouse said...

Bernie,
personally I thought it was an effective mailer for primary voters. It got me to actually look up his website. That said, Dent clearly will benefit from 1.) any anti-incumbent/anti-washington vote being split between Benol and Towne. 2.) in the (unfortunate)highly partisan politics of national politics I think the majority of primary Republicans will agree a lot with the limited govt rhetoric of the challengers but still vote for Dent. Heck, what Republican wouldn't watch Reagan's first inaugural speech on Benol's site without being reminded why they became Republicans in the first place? (which therein lies the Republican problem...they don't live up to their own rhetoric!). But the reality for practical Republicans should be if your party is not elected/electable, you stand less/zero chance of your values being implemented.

Anonymous said...

anon 7:33 has it right. The Callahan lawyers are there to ensure the political not the legal success of the Administration.

Anonymous said...

To Anon 10:50 -

Maybe Callahan felt his Police were wrong to, but it is not his job to make that decision.

That's what courts are for. Karoly failed to convince a full jury and Callahan unnecessarily handed him a victory.

As was pointed out in your original post, Callahan could have offered a lower settlement when the City had the upper hand.

Instead, he rolled the dice and lost.

Callahan's job is to protect taxpayers not John Karoly's finances.

Anonymous said...

From the Morning Call "Easton Stuck with $5 Million Settlement"

Maybe Callahan gave them legal advice?

Anonymous said...

4:52 here... I refuse to accept the words of a politician on the matter. will somebody please answer my question from yesterday? I think it is a fair set of questions.

Donald said...

I would not be so smug - you do know that opposition research is not soley done by Republican Party - This is going to get very ugly on both sides - & the voters of Bethlehem have reelected Callahan twice since then - Again another grasping at straws and coming a with a non issue but I am sure you will all keep trying until you just bitter old men & women

Anonymous said...

While the Mayor was young and "wet behind his ears" when the decision was made, he had advisors including a solicitor and council people. There's plenty of blame to go around, but point well tken...he's the one running for higher office.

VOR