CENTRAL FALLS, R.I. -- According to figures compiled by Governor Chafee's office, the state has spent more than $1 million in legal fees in the effort to close the city's $5.6-million deficit and balance its books.
Since last spring, when Mayor Charles D. Moreau and the City Council went to Superior Court in an effort to file bankruptcy there, the state has spent about $1.1 million in legal fees and salaries to the two receivers who have run the city since July 2010. When added to the approximately $280,000 the city was billed for the time the city was under control of the Superior Court receiver, the total is around $1.4 million.
The first receiver, Mark Pfeiffer, who served from July 2010 to February 2011, was paid $197,289, according to the governor's office. As of last week his successor, ex-Supreme court justice Robert G. Flanders Jr. had been paid $150.207.
Through Aug. 8, $716,011 went to the law firms of Orson and Brusini and Edwards, Angell, Palmer & Dodge. Besides the current bankruptcy proceedings, which began last week with a filing that included more than 960 pages of documents, lawyers from the firms worked last year on advising then-Gov. Donald L. Carcieri and the General Assembly on the drafting of the 21-page law that created the receivership law that the state used to take control of the city's finances.
They also represented the state in it successful defenses of the statute in Superior Court and the state Supreme Court when Mayor Moreau and the City Council filed a lawsuit contesting the receivership law's constitutionality.
Source: http://newsblog.projo.com/2011/08/ris-legal-bills-for-cf-crisis.html
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