The judge ultimately ruled Tuesday that Hangley Aronchick overcame the two criteria for disqualification, which were whether it had an adverse interest in the estate or whether it had an adverse interest to a creditor of the estate. Finding neither, Coleman granted its application to represent Northwest.

Matour said at the hearing that Hangley Aronchick has handled the bulk of Pulver's real estate work for 15 years and would almost exclusively represent the entities created by him to develop specific projects. The firm also handled some personal legal matters for Pulver, Matour said.

In terms of the family court deal, he said Hangley Aronchick has only represented Northwest and has only been paid by Northwest.

In the 90 days prior to filing for bankruptcy June 23, 2010, Northwest paid Hangley Aronchick a total of $75,000 in retainer fees for services to be rendered plus a little more than $73,300 for work done by the firm in May 2010, according to court documents.

Northwest still owes Hangley Aronchick nearly $64,300 for services rendered before May 2010, and an additional $37,000 for unbilled fees and expenses that accumulated between June 1 and June 7 of this year, court filings show.

Hangley Aronchick said in court filings that it "has agreed to waive and release its pre-petition claims."

Matour said the trustee had a question about whether Northwest might have any potential claims against Hangley Aronchick that could affect its representation in the bankruptcy. He said Northwest engaged outside counsel before choosing Hangley Aronchick as its bankruptcy counsel.

Matour said the firm also created an "ethical screen" to block out shareholder Joseph A. Dworetzky from the case because of Dworetzky's position as a board member for the Parkway Council Foundation. Matour said the firm didn't think that would become problematic, but created the screen out of an abundance of caution.

According to its website, the foundation focuses on identifying the best strategies for enhancing and promoting the Parkway, which includes 1801 Vine Street, the current site of the city's Juvenile Court.

Northwest has two other pending applications for special counsel to represent it in the bankruptcy. The firm is seeking to have Klehr Harrison Harvey Branzburg approved as land use counsel and Panitch Schwarze Belisario & Nadel as intellectual property counsel. Though those applications weren't being heard by the judge Tuesday, Callahan said he would not oppose them.

Panitch Schwarze senior counsel Maureen C. Kassner is seeking to represent Northwest at $425 an hour. Prior to filing for bankruptcy Northwest had used the firm in connection with the registration and licensing of intellectual property related to architectural drawings and plans, according to court filings.

Klehr Harrison is seeking to represent Northwest with issues related to land use. Attorneys Carl S. Primavera and Ronald J. Patterson are expected to handle that work at $450 and $375 an hour, respectively. The firm had represented Northwest prior to the bankruptcy in licensing and permit matters before the city of Philadelphia, according to court papers.

Northwest has said it filed for bankruptcy to get an impartial look at who owns the property and the architectural plans associated with the project. The Philadelphia Parking Authority, which mortgaged the air rights of 15th and Arch streets to Northwest, has said Northwest is in default because it hasn't yet built an underground parking garage as required by the deal. PPA filed a declaratory action in Philadelphia Common Pleas Court seeking answers to who has rights to the property, but that action was stayed when the bankruptcy petition was filed.

The First Judicial District terminated its contract with Northwest after it emergedthat the court's tenant representative, former Obermayer Rebmann Maxwell & Hippel partner Jeffrey Rotwitt, was also a co-developer with Pulver on the family court deal.

Northwest has requested authority to issue a subpoena to the PPA that seeks documents related to the obligations between PPA and Northwest and PPA's dealings with Northwest, the building site and other parties involved, according to the motion. Northwest has also filed a motion to set an end date for filing proofs of claim against the company and requested the court bar any additional claims in the case that are filed after Sept. 23.