The Indianapolis Star from Indianapolis, Indiana • Page 13

THE INDIANAPOLIS STAR SUNDAY, OCTOBER 4, 1992 A-14 Pearson miPn-m'' jn.uli nun i imii. miy. i It it A' A' ft 1 r' lei -XV If r-, FILE PHOTO GOP gubernatorial candidate Linley E. Pearson, who has been the state's attorney general for 12 years, presses the flesh in Lake County while on the campaign trail. He says he's at his best talking to voters one-on-one.

Advocacy, environmental work praised Consumer, elderly groups say Pearson doesn't promote his work District Court. Federal Judge John D. Tinder scolded attorney general staffers on defense preparation. He directed his frustration particularly at Michael T. Schaefer, the deputy attorney general in charge of the case, and some officials In the Bayh administration for falling to coordinate their efforts.

The lack of coordination led to delays and confusion. Tinder later ruled against state, finding key provisions of the new law unconstitutional. "They definitely are not as thor- I ough as they could be," says Ann M. DeLaney, executive director of the state Democratic Party and former Bayh aide. She notes have been several other less-publicized cases in which Pearson's office has been unprepared.

Questions about hiring DeLaney and other Democrats also wonder where the women and minorities are on Pearson's staff. His five chief counsels are white men. as Is Foley, his administra- tive assistant. Only four of the 28 assistant attorneys general are women; 17 of 36 deputy counsels and five of 12 trial deputies are women. But Pearson says he has hired" as many women as men in the past 12 years, even though there aren't as many women in the legal profession.

He says he has had a few black attorneys on the staff through the years, but they are so few in num-ber that private law firms paying higher salaries have courted them away. He notes that Shelley Cain;" who is black, is administrator over nearly 80 people who are Pear-. son's support staff. Above all, Pearson defends his staff's efforts in settling cases. "Since I've been in office, we've probably had 100,000 cases, and if you're only talking about maybe two cases that anybody said anything about, then that is going to be about the best record I ever, heard," he insists.

Foley likens the state's defense in litigation to a goaltender in hockey. "When everybody else screws; up, you are the guy they, are counting on. You are expected to make the save. In better than 90 percent of the cases, we have made the save." Pulling back Shortly after Bayh took office in. January 1989, Pearson started, phasing out the attorney general's office's representation of most state departments and agencies in administrative hearings.

Pearson says he felt that under the Republican administration of I Gov. Robert D. Orr, "we had peo- pie (Orr's staff attorneys) over there (at the agencies) keeping people from making mistakes in- ternally." But under the Bayh tion, he felt the Democratic department and agency heads might think "we were trying to thwart administrative initiatives." He says he felt It was time to direct his attorneys toward growing court litigation, in which the attorney general's office still rep- resents those departments and agencies when necessary. Attorneys already in those departments and agencies could handle the administrative hearing workload, he says. But the pullout has angered many Democrats.

"I don't think it's fair for him to say he cut spending when somebody has to fill in for the slack." says DeLaney. who maintains Bayh administration has had tot add attorneys at a cost of nearly $600,000 a year in the departments and agencies to handle ad-ministrative hearings. Campaign ad targeted Continued from Page 1 Some hint that Pearson should have been more Involved. While Pearson's office has continued to represent state departments and agencies in court litigation during Bayh's administration, it has stopped advising those divisions in administrative hearings another cost-saving measure. But Democrats argue that dollars saved to make Pearson look good only mean more dollars spent on attorneys for the divisions.

The result, they say. is a wash. Despite the jabs at his management style during the gubernatorial campaign, Pearson, 46, has managed to keep the low-key demeanor that co-workers say has become his hallmark as attorney general. "I'm definitely a laid-back person," he insists. "1 appear to be very calm, and I am.

It takes a lot to upset me." His only break from character came during the GOP state convention in June, when delegates rejected his recommended candidate for attorney general and chose Bookwalter. That incident provoked an unexpected temper flare a spark of emotion some say must reignite if Pearson wants to defeat Bayh. Office stability begets loyalty Pearson admits his management style is a reflection of his personality. "Management by the exception is what it is," he explains. "Things get to me that I have to see.

Otherwise, the philosophy is to handle them at the lowest level the individual at the bottom level making the decision." Daniel Foley, Pearson's administrative assistant, puts it this way: "Linley sets the parameters of what Linley wants accomplished." Pearson then entrusts those on his staff with the responsibility and the authority to use their judgment in fulfilling the task, Foley says. If Pearson criticizes someone on the staff, workers say, it is done in private. That brings a lot of stability to the office, says Robert Spear, Pearson's chief counsel for litigation. "There's a lot of tolerance for people doing things. People aren't afraid to make decisions." That stability has created loyalty to Pearson among Foley and Pearson's five chief counsels.

All six have served Pearson since the day he took office in January 1981, and the chief counsels were on the staff of Pearson's GOP predecessor. Theodore L. Sendak. 1 "It means you need fewer people because the people you have are capable of doing the job without necessarily consulting somebody else." Pearson says. "There's always somebody around with historical knowledge who has seen the problems before." In fact, Pearson prides himself on having essentially the same number of attorneys on his staff as when he took office.

The caseload has nearly tripled since 1981, when there were about 6,000 active cases. Says quality not sacrificed But Pearson contends he's never sacrificed quality in litigating cases, which he calls the most important area of his office. 1 "We did it cheaply, and we did it well." he says. "It certainly would have shown up if we hadn't. It certainly would have shown up in the legislature." Pearson recently returned Si million, or more than 10 percent of his annual budget, to the state, although some attorney po-.

sitions remain unfilled. "Keeping a lean and mean staff is in itself a good management tool," Pearson says. Self-imposed restraints Others are not so sure about Pearson's tactics. PEARSON'S LAWS Laws created through efforts by Attorney General Linley E. Pearson include those that: Protect consumers, particularly the elderly, from home improvement fraud sales.

Increase penalties for violators of the consumer fraud law. Protect businesses and consumers from fraudulent business offerings. Regulate the sale of time-share resort homes and camping club memberships. Provide cancellation rights on purchases made in the consumer's home. Set standards and penalties for fraudulent telephone sales.

Protect consumers from defective new motor vehicles. Regulate professional fund-raisers for charitable tuts am otherwise, Cardwell says. Grant Smith, coordinator of the coalition's toxic action project, has a similar recollection. He says Pearson let his chief counsel, David Miller, advise the group's pollution prevention policy committee. The effort resulted in the 1990 enactment of the Industrial Pollution Prevention and Safe Material Act, which establishes a framework to shift from managing industrial waste to preventing its creation.

Pearson also fs credited with helping nursing home residents and those who want home care. Paul J. Severance, executive director of United Senior Action, says Pearson's office worked to thwart a proposal by nursing home owners to exempt themselves from state inspection. Severance says Pearson came to the rescue when Gov. Evan Bayh's administration proposed home care regulations that the seniors group felt were too stringent for patients.

But while environmentalists and senior citizens view him as a friend, the business community is lukewarm. Daniel Foley, Pearson's administrative assistant, concedes that some major corporations, particularly some utilities and oil companies, have been unhappy with the attorney general's legal opinions. One opinion prevented utilities from passing on costs of construction work in progress, saving customers from being charged for two failed nuclear power plants. Pearson also Joined other state attorneys general to successfully challenge overcharging by oil companies. State attorneys had wanted Jack M.

Huxford, who was expected to say the physician performed unnecessary surgery on him. Instead, they got his cousin. Jack W. Huxford. who testified he was satisfied with the surgery the physician had performed on him.

The charges against the physician were dismissed for lack of evidence. To be sure the right witness is called "is so basic as to be outra- "Since I've been in office, we've probably had 100,000 cases, and if you're only talking about maybe two cases that anybody said anything about, then that is going to be about the best record I ever heard." Linley Pearson Indiana attorney general geous" when a mistake Is made, says Elberger. Medical board members issued a report that said the attorney general's office was guilty of "an embarrassing lack of pre-trial preparation." In August 1990, the office presented the defense of tiie state's new out-of-state trash law in U.S. By WILLIAM J. BOOHER STAR STAFF WRITER Attorney General Linley E.

Pearson gets high marks from advocacy groups for promoting legislation and enforcing laws to protect consumers and the environment. Trouble is. few people know it. Friends and foes alike agree that Pearson, the Republican gubernatorial nominee, does little to promote himself. Some believe that could hurt him on Election Day.

"He has done many things which we believe the public would be real impressed by, but which he has hardly let anyone know what he has been doing," says John Cardwell, legislative and program director for Citizens Action Coalition, a consumer advocacy group that boasts 300,000 members. In an era in which politicians shamelessly tout accomplishments, Pearson could flaunt his share especially with consumer and environmental issues. Last year, he became the first Republican in years to receive the coalition's Consumer Rights Award. He has initiated laws that protect the elderly from home improvement fraud and regulate professional fund-raisers. He also crafted the state's "Lemon Law," giving consumers rights when they purchase defective new vehicles.

In 1984, he was honored by the Hoosier Environmental Council for "highly efficient enforcement" of environmental protection laws. A year earlier, he was profiled in Washington Monthly as one of Some say his staff of 97 attorneys is too lean. Democrats claim Pearson operates frugally In years when his name is on an election ballot and overspends in others. "The problem in the attorney general's office, irrespective of who is attorney general, is inadequate funding to investigate and prosecute cases," says Ronald E. 0 consumer disputes with businesses.

But when it comes to performance appraisals, the man who could be governor still gets mixed reviews. Fellow Republican Timothy Bookwalter, who wants to be the next attorney general, believes Pearson has been too passive, particularly with legislation. "I believe it's time for a proactive attorney general," Book-waiter says. Ann M. DeLaney, executive director of the State Democratic Party, agrees: "In terms of aggressive protections of consumers, unfortunately Indiana's record has not been in the forefront." She points out that Indiana was among the last states to pass a Lemon Law.

Yet, government insiders say Pearson has managed to cultivate consumer and environmental groups. "Generally, Pearson's mind was open on environmental questions," says Jeff Stant, executive director of the Hoosier Environmental Council, which has more than 60 environmental groups as members. "He's not somebody I could call on one side or the other. In Indiana, I would call that good." The citizens coalition's Card-well remembers when Pearson sat down alone with him and helped rewrite legislation designed to establish a financial counseling program for struggling farmers. Despite opposition from some in the Republican administration of Gov.

Robert D. Orr, who felt the proposal would hurt the lending market, Pearson thought "He has self-imposed budgetary restraints to look good for an election." Elberger calls Pearson "penny-wise and pound-foolish." He says Pearson "has good attorneys who are able to do a better and more thorough job," but they are handicapped by being stretched too thin to handle all of the cases that merit attention. Bookwalter, the GOP attorney general nominee, agrees. "That office is understaffed. There are 17 unfilled positions for attorneys." Like Elberger, Bookwalter complains that Pearson has been too frugal for political reasons.

High-profile cases Critics say the breakdown in staff preparation has affected some of the state's highest-profile cases. In 1985, the attorney general charged Manuel Cacdac, a Terre Haute physician, with performing unncessary back and neck surgery on 26 patients. The case attracted national attention, including a segment on the TV news magazine 60 Minutes in which Pearson was interviewed. It remains the only time an attorney general's office has pursued a case against a physician for allegedly unnecessary surgery. But.

as the attorney general's office presented the case to the state medical board, theffice put the wrong witness on the stand. 12 state government standouts. Of particular note in the profile was Pearson's efforts to combat hazardous-waste sites. Operators of at least 12 sites have been prosecuted in recent years. "Pearson has made it his goal to clean up toxic waste quickly and cheaply," the magazine noted.

"He doesn't let violators off easily, but they do stay in business so they can foot the bill for cleaning up." During his 12-year tenure, the attorney general's consumer protection division returned more than $100 million in refunds and restitutions to consumers and resolved more than 60,000 Elberger, an attorney and member of the Medical Licensing Board of Indiana since 1982. "Linley reasonably tries to provide the best services he can with the budget he has self-imposed." says Elberger, who has witnessed many cases presented by the attorney general's office to the board. LEADERSHIP EDUCATION lor ADULT PROFESSIONALS mm mm mmm DeLaney 's interest in Pearson's staffing and budget peaked recent-) -ly when she heard a Pearson campaign advertisement saying the National Association of Attorneys General ranked Pearson as the most cost-effective in running his office among attorneys general in the nation. i' She challenges Pearson's asser-tion that his annual budget is $7.5 million, saying it Is more like i $10.2 million when all sources of -funding are accounted. She says Pearson's office and all other attorneys general sent budget and staffing lnforma-'' tion for 1991 to the national asso- ciation.

But the attorneys general have widely varying duties and responsibilities, making it hard to -compare, she argues. DeLaney also claims Pearson" sent information to the associa-" tion that "understates his budget, understates his personnel. He" then comes up with a which is apples and oranges and then confers an award upon himself that doesn't exist." The association simply compiled those statistics in chart form in a booklet titled Statistics on the Office of Attorney General. A spokeswoman says the associa- tion does not rank its members. Pearson concedes the association didn't make any ranking.

But he insists: "We are so far: below the rest of these people (attorneys general) in terms of money and expenditunfis, there's no comparison." What Do Fortune 500 Companies Like About Indiana Wesleyan University? Our Graduates. Indiana Wesleyan University offers the unique combination of convenience and quality. Major corporations throughout Indiana have encouraged their employees to choose Indiana Wesleyan University as the way to complete an associate's degree in business, bachelor's degree in management or business administration, or earn a MBA or Master of Science in Management. Today over 2200 students have realized their goal and another 1500 are in the process. CLASSES MEET REGULARLY IN INDIANAPOLIS If you would like to know more about becoming a graduate of Indiana Wesleyan University call today at 574-3971 1-800-886-LEAP 0.