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Typically Whitman Council’s office is busy this time of year, organizing weatherization workshops and offering rent rebates to its senior population. Instead, the office has been dark and empty since early last month.
“This office is temporarily closed until further notice,” the answering machine message stated when a call was placed to its office.
The space at 2455 S. Third St. has been forced to shut down — at least for the time being — after counsel that had represented three Whitman board members in a federal harassment suit sought outstanding legal fees and wiped the civic group’s bank accounts clean. The action also halted City funding for the group until further notice and leaves its future undecided.
“We can’t incur any costs until this whole thing is resolved,” council President Mark Squilla, who took office in September 2008, said. “We can’t use the office. We can’t pay any rent obviously until we fold or we start a new organization or unless this lawsuit is resolved.”
In ’05, the original lawsuit was filed by the group’s former executive director, Janet Sharp, claiming board members Robert Blackburn, Henry Lewandowski and Michael Sullivan harassed, intimidated and discriminated against her because of her relationship with a former priest and Whitman board member. While Lewandowski and Sullivan remain on the board, Blackburn has since resigned.
“This still stems from the same case and, unfortunately, three individuals that were on the board were sued and now their attorney is trying to get the legal fees back to pay for the legal costs,” Squilla said of the current financial woes.
Lawyer George Buchetto, who was hired by the three board members and not the council, who had separate representation, filed a civil lawsuit in Common Pleas Court last June that resulted in the judge ruling in Buchetto’s favor, awarding him more than $120,000. Whitman Council lacked the funds to hire an attorney to represent itself against Buchetto.
Buchetto did not return calls or e-mails questioning why he sued the group as opposed to the individuals he represented prior to press time.
The council thought the federal lawsuit was over and no other legal ramifications would result after the November ’08 settlement with Sharp, where charges were dropped against the three. Details of the settlement were not disclosed.
“We still believe, according to that initial agreement, [Buchetto] wasn’t able to do that, but because we couldn’t defend that, he went ahead and did it anyway,” Squilla said of the attorney’s lawsuit.
Buchetto has since collected about $14,000 from Whitman, which has emptied its accounts. The latter consisted of money from the city’s Office of Housing and Community Development (OHCD), the state’s Department of Community and Economic Development (DCED) — funds left over from ’06 and ’07 — and $1,400 of its own money from past grants and donations.
OHCD money, which provides about $75,000 a year to the council, paid for the functions of its first-floor office, including rent, two paid staffers, bills and programs while the DCED money was allocated for specific projects, equipment and board insurance, Squilla said. The group received a $5,000 grant for equipment, landscaping and insurance in ’06 and $10,000 the following year for equipment, salaries and supplies from the state department.
“They cannot be used for legal purposes,” DCED spokeswoman Jamie Yates said. “The contract specifically stated that.”
Eligibility for future years will be determined upon review of the specific legal issues, she added.
But the city has already taken action.
“Our funding has been suspended by OHCD,” Squilla, of Front Street and Snyder Avenue, said. “OHCD has filed a claim in court to have them get their money back.”
A hearing was scheduled with the city office for Feb. 10, but was postponed due to the weather and had not been rescheduled as of press time.
OHCD spokesman Paul Chrystie could not comment on the ongoing litigation, but said the Council’s contract from Oct. 1, ’09, through Sept. 30 of this year is for $76,000 and was to be used for coordinating neighborhood improvement programs.
“They have to document the work that they do,” he said, adding the money spent is then reimbursed from OHCD.
As for its own meetings, the volunteer board — 18 members including four elected officers, nine elected directors and four appointed directors — cancelled its January meeting, but still planned to hold its February meeting last night at Our Lady of Mount Carmel Church, 2319 S. Third St.
“We can still meet and inform the community on what is going on and we can still act as an advisory group,” its president said.
Aug. 11, ’05, Sharp, who served her post for 17 years before stepping down in late ’08 prior to the case’s settlement, filed a lawsuit against Blackburn, Lewandowski and Sullivan, who she claimed questioned her relationship with Kenneth Sharp, former board member and a former priest of Mount Carmel. The two married two months before she filed the lawsuit.
At a Sept. ’05 meeting, then-board member Fred Druding Jr., who served as council president from September ’06 to ’08, said Whitman should not use its own funds — including money from a $100,000 IKEA grant dating back to ’02 — to defend itself. But about $7,000 of that grant was used to investigate Sharp’s personal life, while $41,000 was paid to Center City law firm Sand & Saidel, which later withdrew its representation. Prior to that the lawfirm filed a cross claim against the three board members for damages and legal fees
Whitman then hired Steven Marino of Marino, Conroy and Coyle, 301 Wharton St., which charged a $15,000 retainer that the board agreed to pay, but Druding voided the check in Oct. ’06 for fear the use of council funds could jeopardize future contributions and its nonprofit status.
“Obviously, they were using community funds, which in my belief was unjustifiable,” Druding, of Front and Roseberry streets, said.
At an Oct. ’06 meeting, Druding said the board overrode the void, but Druding refused to sign further checks.
“Mr. Druding violated the Whitman Council By-Laws section 6:03, which among other things, states that the president shall oversee that the orders and resolutions of the board of directors are carried out. Therefore, staff is instructed to immediately reissue another payment to the law firm that has defended Whitman Council in the case of Janet Sharp v. Whitman Council,” a statement from the board read.
Marino did not return calls or an e-mail by press time.
That money is not in question at the moment since the IKEA grant permitted its use as necessary, Squilla said.
“Obviously, a lawsuit doesn’t help the community, but in these days, you need money for someone to represent you and when you run out of money, not many people are willing to represent you,” he said.
But according to the group’s Oct. 18, ’06 minutes, the agreement for those funds stated they would be used for community projects and programs and was signed by Blackburn.
While Whitman is not in debt aside from the outstanding money going to Buchetto, the lack of a functioning community group will have a huge effect on some residents, but the board along with the two laid-off staff members have stepped up to assist community members as needed.
“We should still be working to be an advocate for them,” he said. “Once that’s gone, the whole community gets forgotten.”
Contact Staff Writer Amanda Snyder at asnyder@southphillyreview.com or ext. 117.
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