JD Journal » vacation pay

Former Heller Employees Sue Partners

Erik Even — Mon, 27 Apr 2009 16:42:39 +0000

Former employees of San Francisco’s defunct Heller Ehrman, which declared bankruptcy in December, are suing 179 former partners for $32 million.

The suit alleges that the firm’s shareholders failed to give the legally required 60 days notice of layoffs. They seek accrued vacation, severance cash, and penalties under the WARN Act.

The over 800 ex-employees are represented by Los Angeles-based litigation boutique Blum Collins.

Founded in San Francisco in 1890, Heller Ehrman LLP was an international law firm of more than 730 attorneys in 15 offices in the United States, Europe, and Asia.

In September 2008, the firm encountered troubles after losing 15 intellectual property partners to Covington & Burling, which led to the collapse of merger talks with Mayer Brown. A total of 50 partners had left the firm in 2008. The firm dissolved in November 2008.

240 Ex-Thelen Associates & Staff Could Sue Under WARN Act

Erik Even — Fri, 27 Feb 2009 21:31:02 +0000

Thelen has identified 240 former associates and staff who could assert claims alleging the firm violated the federal Worker Adjustment and Retraining Notification (WARN) Act by failing to pay adequate wages and vacation time over its December 1st, 2008 dissolution.

Thelen announced its dissolution on October 30th, and laid off most of its employees on November 30th.

The suit, filed November 24th by three former associates and one former staff member, alleges that under the WARN Act Thelen should have paid its employees their salaries, bonuses and other compensation, plus allowed for 401(k) contributions and health insurance coverage, during the 60 days following the initial announcement of its dissolution.

The employees also are seeking unpaid vacation pay.

If successful the plaintiffs, who are seeking class certification, could obtain an award of several million dollars.

In a list provided by Thelen, about 240 former employees — 60 associates, 20 counsel and 163 staff members — are identified as putative members of the class.

Steven Blum of Los Angeles-based Blum Collins, who represents the plaintiffs, said that list doesn’t include California employees, who could number hundreds more.

Thelen Won’t Pay Laid-Off Workers

Erik Even — Mon, 09 Feb 2009 16:46:00 +0000

Defunct law firm Thelen LLP is telling courts it couldn’t possibly pay its employees accrued vacation, or give 60 days’ notice of impending layoffs.

In response to ex-employees seeking damages under the federal WARN Act, the firm says it should be excused from its obligations because they were impossible to fulfill. Also, because the firm had been seeking capital to keep in business, informing employees would have jeopardized attempts to secure a loan.

Thelen told its employees in late October that it would cease doing business by December 1st. Citibank, the only secured creditor, seized the firm’s bank accounts and did not allow it to pay employees accrued vacation.

Steve Blum, who represents plaintiffs in the federal class action, said it’s a “cop out” to blame the banks. The partners should have ponied up the money for the employees, he said.

Latham & Watkins partner Wayne Flick, who filed the answer on behalf of Thelen, declined to comment.

Thelen owed Citibank $60 million when it dissolved. It has paid off about $25 million and is continuing to collect payments, according to bankruptcy partner Peter Gilhuly at Latham & Watkins.

Blum is also representing former Heller employees in a potential class action against that firm, which filed for bankruptcy in December.