Rendell confidant takes Ballard Spahr post

John H. Estey, a trusted confidant of Gov. Rendell and a key player in his administration, plans to leave state government to join the Philadelphia law firm of Ballard, Spahr, Andrews & Ingersoll L.L.P., where he will lead a new practice group representing corporate clients before government agencies.

Estey, 45, was Rendell's chief of staff from the beginning of the governor's administration in 2003 through April last year, when he stepped aside to fill the role of senior adviser.

He helped quarterback some of Rendell's most prominent issues, most recently heading up initiatives to tighten Harrisburg's control over development of the Convention Center.

As chairman of the Philadelphia Regional Port Authority, Estey also played a pivotal role in Rendell's effort to better capitalize on growing global trade by expanding the city's seaport.

"We don't have an official [government-relations] practice," said Arthur Makadon, chairman of Ballard Spahr. "We have a lot of people who have done various things for various clients in various parts of the country, and this will bring that under one umbrella, launching a national government-relations practice that focuses on statewide issues."

Estey's move to Ballard Spahr illustrates the pressing need - and sharp competition - among large law firms to recruit top lawyers with substantial contacts.

When firms land top names, it usually makes news.

As a general rule, state employees in Pennsylvania face a one-year post-employment restriction on lobbying government agencies for which they had worked. But since the Pennsylvania Supreme Court exempted lawyers from that ban on the grounds that the court alone had authority to regulate lawyer conduct, Estey would be legally permitted to approach the governor's office on policy matters.

But Estey said he would not lobby his former employer.

"I just don't think it would be appropriate, given the work I have done and the level of my relationship with the governor."

There is little doubt that Estey is close with Rendell.

"John Estey performed superbly for five years as my chief of staff," Rendell said in a statement on Estey's departure.

Although he worked for a Democratic administration, he seems to have maintained good relations with Republicans in Harrisburg.

Steve MacNett, general counsel to the Senate Republicans, said that while Estey was intensely focused on Rendell's agenda, he had a practical side. His credibility with Rendell sometimes helped to move the governor toward compromise, MacNett said.

"He's a real pro," he said of Estey. "We had some issues where we got our backs up, but I found him to be a complete professional, a rational and intelligent guy."

Makadon said the new practice group would initially comprise about a dozen lawyers, with a handful of those working on government matters full time.

The aim, Makadon said, is to help corporate clients coordinate legal and regulatory strategies in multiple state capitals at the same time.

The idea is that regulatory initiatives often play out in many state capitals simultaneously, as they did when the states began cracking down on tobacco in the 1990s, or when state banking laws were restructured across the country in the 1980s.

Makadon said the firm believed that offering corporate clients a coordinated strategy, along with Estey's policy experience, would produce healthy returns, even in the event of an economic downturn.

"This is a recession-proof practice," Makadon said. "It doesn't depend on the economy, it doesn't depend on lending. There are always going to be businesses that need to deal with state-related issues."

Estey, a graduate of Carleton College and the University of Pittsburgh law school, had been a partner at Ballard Spahr for a year before leaving in January 2003 to join the Rendell administration as chief of staff.

Rendell and Estey go back a ways. Estey had earlier been Rendell's deputy chief of staff from July 1997 through March 1999, when Rendell was mayor of Philadelphia.

Estey, who lives in Ardmore, said the increasing complexity of state governments around the country was creating pressures on corporate clients to stay ahead of the regulatory and legislative curve.

One practice area that is likely to grow is law that centers on sale of government assets, such as roadways, already widespread, and the establishment of partnerships between state governments and private-sector interests to develop commuter rail lines and other services, he said.

"A lot of folks are looking at that aggressively," he said of the public-private partnerships.