EDITOR'S NOTE: Below is an updated version of a story that appears in the February 15 print edition of The Newtown Bee.

Shortly after being notified by First Selectman Dan Rosenthal just before noon and after the newspaper's print edition went to press February 14, Newtown Board of Education Chair Michelle Embree Ku also contacted The Newtown Bee saying the school district's law firm Shipman & Goodwin would no longer be representing a developer taking legal action against the town in a land use matter.

The Newtown Board of Education was poised to hear First Selectman Dan Rosenthal’s concerns regarding the firm during a regular meeting February 19 that was going to begin at 7 pm to accommodate Mr Rosenthal's schedule. Ms Ku told The Bee that after this latest development, the board would not be scheduling Mr Rosenthal on its agenda, and the February school board meeting would begin at its normal 7:30 pm start time.

"We just received a call from the Town Attorney David Grogins notifying us that Shipman & Goodwin in no longer associated with a land use lawsuit being brought against the town," Mr Rosenthal said. "So I don't see any reason to continue with my plans to speak to the [school] board next Tuesday, or to request the board terminate its relationship with the firm."

"As a result of this latest information, there is no reason to change the normal start time of our February 19 meeting or to include Mr Rosenthal or any possible discussion about the firm," Ms Ku said. "The meeting will begin at its regular time of 7:30."

The issue, which was originally reported last week, also came up at a Board of Finance meeting February 11, when two members, including the former school board chair, weighed in on the matter. 

Mr Rosenthal previously reported to the Board of Selectmen that he planned to appear before the school board to explain his position and formally call for the firm to be “terminated in an orderly fashion.” Since Shipman & Goodwin was retained by Newtown’s Board of Education four years ago, local taxpayers have compensated the firm more than $678,000.

After making several unsuccessful attempts, along with Superintendent of Schools Dr Lorrie Rodrigue and school board Chair Michelle Embree Ku, to try and persuade the firm to refer any land use clients litigating against Newtown to other firms, Mr Rosenthal has “put his foot down,” he said.

“We certainly would not want to disrupt any cases currently in process, but I want to see them released from their contract as soon as any open cases are resolved,” he told The Newtown Bee.

Responding to a request for comment on the matter prior to this latest development, the school board chair said any such termination would need to be weighed against how it would benefit the people of Newtown.

“Until the board has heard all of the information and deliberated, I don’t want to get out ahead of the matter,” she said, adding that weighing a termination decision would have to be balanced against concerns Mr Rosenthal expressed on behalf of the municipality."

That sentiment was echoed by finance board member Steve Hinden, who the first selectman said brought up the issue for discussion. While it was not an agenda item for the finance board Monday, Chairman James Gaston said since it involved financial matters, he would entertain some discussion as part of the first selectman’s report.

Mr Hinden told the first selectman that delivering on his demand to terminate the firm “is not as clear cut as you’re seeing it.” Mr Hinden said law firms are not interchangeable and that Shipman & Goodwin provides unique expertise because they represent 125 boards of education throughout the state.

He said the local school district chose that firm for a reason, and the impact on taxpayers involves more than “just paying twice.”

Mr Hinden ticked off a list of benefits the firm delivers locally, including its attorney’s experience in labor negotiations and reducing legal exposure to Newtown’s board of education. He said there would be added expense involved bidding for and interviewing possible new firms and the time and expense involved “getting up to speed.”

He added that the adverse party who is employing the firm to sue the town is simply paying their lawyer.

“I worry about implications of a policy where the town and board of ed won’t use a firm that is serving both sides,” Mr Hinden said. “What legal expertise would be provided to the board of education? It makes me nervous about a rush to judgement — I worry about demonizing a firm that’s been a friend to board of ed in labor cases. I call for a cooling of the jets on this matter.”

Keith Alexander, the former school board chairman who is serving his first elected term on the finance board said he would, “like to have a discussion on it,” but told The Bee after the meting that he does not believe it is a finance board matter.

Shipman & Goodwin previously sent documentation including settled case law that determines there is no ethical conflict for the firm to sue the town on behalf of a client in a land use matter, because the board of education is technically an agency of the state despite the fact that Newtown taxpayers are responsible for 95 percent of the firm’s billable time.

In correspondence between the firm and the first selectman, Anne Littlefield, the firm’s deputy general counsel, affirmed that representing the school district, as well as clients suing Newtown, “does not present a conflict of interest under Connecticut’s Code of Professional Conduct.”

But Mr Rosenthal had maintained that while the issue does not represent an ethical conflict, he sees it as a business conflict.

“In these situations, firms may say they have a relationship with the same client and find another firm,” Mr Rosenthal said, further explaining that land use litigation by the firm “is our greatest exposure.”

The first selectman fears the long-term impact from land use suits.

“Lose a case and it could bring density and traffic congestion that impact community for years to come, all brought to us by the same firm we’re paying a large sum of money for another service,” Mr Rosenthal told the finance board.