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For many years, Newark’s McManimon & Scotland has led all firms in the number of New Jersey public financings shepherded to market. And it did so again last year, serving as bond counsel on 119 issues, more than twice as many as the second-busiest firm, Wilentz, Goldman & Spitzer of Woodbridge. But what made 2002 extra special for McManimon & Scotland was its participation in the year’s largest New Jersey financing, the sale of $1.8 billion in bonds to be repaid annually from the state’s share of money from the global settlement with the tobacco industry. The state used the money to help close the budget gap. By serving as bond co-counsel, McManimon & Scotland replaced Morristown’s Riker, Danzig, Scherer, Hyland & Perretti as the top bond firm in terms of par value of the deals handled. It’s probably no coincidence — in Democrat Gov. James McGreevey’s first year in office — that name partner Edward McManimon is a Democrat, while Riker, Danzig, though it has Democrats and Republicans among its partners, had strong ties to the administration of GOP Gov. Christine Todd Whitman. The number of Riker, Danzig deals dropped from 29 with a par value of $2.9 billion in 2001 to 14 with a par value of $743 million. Thomson Financial, whose affiliates include The Bond Buyernewspaper, keeps track of professional services firms that work on bond issues and provided the rankings to the Law Journal. The $1.8 million tobacco bond issue was counted twice in the survey, once for McManimon & Scotland and once for its co-counsel, Hawkins, Delafield & Wood, the national bond firm that has eight lawyers in an office in Newark. That firm has handled tobacco bond issues in other states and that expertise apparently gave the firm the inside track on the New Jersey version. The firms were well rewarded. Hawkins Delafield earned $460,000 and McManimon & Scotland $315,384. McManimon says his firm has traditionally found the bulk of its work among municipalities, school districts and counties that have smaller bond issues. Indeed, except for the $1.8 billion tobacco deal, the firm’s average issue totaled about $16 million last year. But he says, “We have been ratcheting up for work with state agencies.” He says his firm has added five or six attorneys in the past year or so and now has 26 lawyers. Three-fourths of the business is bond work. Once again, the list shows how effective public issuers’ preference for New Jersey counsel has been. The 1999 state Supreme Court ruling, In the Matter of Opinion 33 of the Committee on the Unauthorized Practice of Law, 160 N.J. 63, gave issuers the right to use non-New Jersey lawyers for bonds that called for expertise not available in-state. But the list of bond counsel for 2003 shows that such calls were not necessary. All but five of the firms on the 2002 list have their principal offices in New Jersey and those five have branch offices in the state. They are Hawkins, Delafield; Sullivan & Donovan, which has an office in Flemington; and Philadelphia’s Obermeyer, Rebmann, Maxwell & Hippel; Stevens & Lee; and Blank Rome, all of which have offices in Cherry Hill. Three large Philadelphia firms with New Jersey branches that used to do a lot of bond work in the state did none last year. They are Fox, Rothschild, O’Brien & Frankel; Saul, Ewing Remick & Saul; and Montgomery, McCracken, Walker & Rhoads. On Jan. 1, the public finance department of this year’s fourth-ranked firm, Teaneck’s DeCotiis, FitzPatrick, Gluck & Cole, divided into two groups. It remains to be seen how the split will affect distribution of state agency work. The firm changed its name to DeCotiis, FitzPatrick, Cole & Wisler with the departure of name partner Michael Gluck, who started 14-lawyer Gluck, Walrath & Lanciano in Trenton. Both firms have experienced bond counsel. Gluck has longstanding ties to the Republican Party, but his firm’s expertise will put it in line to compete for work from state authorities during the McGreevey administration. The state’s Educational Facilities Authority, for example, was quick to add the Gluck firm to its approved list. Related chart: Top 25 Bond Counsel for NJ Long Term Municipal New Issues

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