The lesbian and gay community suffered a setback last week when Commonwealth Court -- which only handles issues pertaining to state and city employees -- ruled that the city’s same-sex health benefits ordinance was illegal.

In brief, the ruling said that the city cannot duplicate marriage for same-sex couples.

This defeat came shortly on the heels of a victory for the community when the state Supreme Court ruled that a same-sex partner could adopt his or her partner's child.

The defeated domestic-partnership bill was passed in City Council on May 7, 1998, and signed into law by Mayor Ed Rendell on May 19, 1998.

Under the ordinance, a domestic partner had to establish dependence, there had to be proof of a relationship that has lasted at least six months. Other requirements included documentation such as a property deed, lease, vehicle, bank account, will or power of attorney. There are 120 city workers who have registered with the city and will avoid paying real estate transfer taxes because of the bill.

The Urban Family Council, a Christian conservative group that promotes life, marriage and family, immediately challenged domestic partnership in court.

"Ed Rendell is disappointed with the court's ruling because he supported and fought for the legislation," said Dan Fee, Rendell's spokesperson.

"We always knew that domestic partnership would be challenged," said Michael Hinson, the assistant managing director and Mayor John Street's liaison to the lesbian, gay, bisexual and transgendered community.

Hinson said that he has not had an opportunity to read the court's ruling or talk to the mayor about the issue yet.

Stacey Sobel, the executive director for the Center for Lesbian and Gay Civil Rights said they were waiting for the city solicitor's office to make a decision on whether or not to appeal.

Sobel was concerned that the court's decision would affect the Fair Practices Ordinance, which prohibits discrimination against race, gender and same-sex issues.

The city's appeal would go to the state Supreme Court which in turn would decide whether or not they would hear the case. It is likely that the city will appeal and that the Supreme Court will hear the case.

The concern is now what will happen to those with benefits during the appeal process.

When the issue of domestic partnership becoming a reality came about, City Councilman Angel Ortiz, an advocate of gay rights, had introduced legislation that was a different version of the domestic-partner bill. He called it the "Aunt Tilly" bill.

"It would give everyone and their Aunt Tilly benefits," he said. Basically anyone living together that met the criteria could be eligible for benefits, including heterosexual couples.

Ortiz engaged Tom Coleman, an expert witness who had helped draft legislation for same-sex couples as well as heterosexual couples living together unmarried.

Other cities such as Boston, San Francisco, San Diego, Los Angeles, Atlanta, and the state of New York have such partnership programs. Coleman had suggested that Philadelphia follow the same program.

But his proposal did not fly in Council, basically because the feeling was that straight couples could marry and same-sex couples could not.

Street, then City Council president, was for the Aunt Tilly bill, although that bill would increase the cost of benefits.

"That's a red herring," said Mark Segal, publisher of the Philadelphia Gay News.

"It would have made no difference. I have no problem with everyone getting benefits but the city could not afford it. The court should have ruled on the law and not the Bible. They (the Urban Family Council) are hardly Christian; they are cruel and evil," he said.

Ortiz said it would not have made a difference because the Urban Family Council would have opposed the bill anyway since the issue was marriage.

"Today, I directed City Solicitor Nelson Diaz to file an appeal," Street said. "I also asked Diaz to see a stay of the opinion in order to allow life partners to continue to receive benefits during the course of this appeal."

David Hallowell is vice president of Greater Philadelphia Professional Network, (GPPN), a gay and lesbian career and business development organization. Later this month, their guest speaker will be Bill Gehrman, the director of marketing for the Philadelphia Visitors and Convention Bureau. His topic will be making the city a destination for the lesbian and gay community.

"As a gay man who wants to get married some day I am concerned," said Hallowell. "I am concerned that the community has spent a lot of time lobbying for these issues. We are impacted because we want not only to attract gays and lesbians to the city as a destination, but to make it a place to live."

An emergency meeting for all concerned is scheduled for Thu., Sept. 5, at the William Way Lesbian, Gay, Bisexual and Transgendered Community Center at 6:30 p.m.