Legal News

Dorsey & Whitney Out of Danger
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Gavel.The 8th U.S. Circuit Court of Appeals threw out a decade old case on Thursday, relieving the Dorsey & Whitney law firm from the threat of $4 million in malpractice suits.

In 1999, an investment bank in Minneapolis, called Miller & Schroeder, which is now non-operational, packaged about $12 million in bonds, selling them to over thirty different banks. Those banks turned that money over to become direct lenders to a Mohawk Native American tribe located in New York State. The tribe used that money to invest in a casino.

The illegality comes because Miller & Schroeder hadn’t received the green light from the National Indian Gaming Commission to go ahead on the loan for the casino. It was proven that Dorsey was aware that this could endanger the investment, and ignored it.

  
What
Where


The casino went under, and the loans went into default in 2000. The Mohawk tribe claimed they weren’t obligated to repay the loans because of the fact that the gaming commission never gave approval.

Miller & Schroeder sued the casino management as well as the Mohawk tribe in bankruptcy court. Dorsey encouraged Miller & Schroeder to release the tribe from the suit, and in 2007, a federal district court decided that Dorsey only wanted them released from the suit because they wanted to keep their own mistakes from being revealed.

Two federal courts – a bankruptcy court and a federal district court— ruled against Dorsey in judgments that accumulated up to $900,000.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




However, on Thursday, a majority of the 8th Circuit decided that Dorsey did not, in fact, commit malpractice. All charges against the firm were dropped.





 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Litigation Trial Attorney with 3-5 years of pleading experience

USA-WA-Seattle

Seattle office of our client seeks litigation trial attorney with 3-5 years of experience. The candi...

Apply Now

Corporate Attorney with mergers and acquisitions experience

USA-CA-Los Angeles

Los Angeles office is seeking a corporate attorney with 1-6 years of M&A, corporate finance, securit...

Apply Now

Estate Planning Attorney with 6+ years of experience

USA-CA-Los Angeles

Los Angeles office is seeking an experienced estate planning attorney with 6+ years of experience. C...

Apply Now

Litigation Associate Attorney

USA-CA-San Diego

San Diego office of our client seeks litigation associate attorney with 4-5 years of experience. The...

Apply Now

RELEVANT JOBS

ASSOCIATE ATTORNEY

USA-TX-Houston

INSURANCE DEFENSE / TRANSPORTATION LITIGATION Law firm located in North Houston seeking an associ...

Apply now

Legal- Disbursal Manager

USA-NV-Las Vegas

Prestigious Personal Injury Law Firm seeks Disbursal Manager Qualified individuals need to have p...

Apply now

Legal- Disbursal Manager

USA-NV-Las Vegas

Prestigious Personal Injury Law Firm seeks Disbursal Manager Qualified individuals need to have p...

Apply now

Litigation Associate

USA-LA-Shreveport

A well-established AV rated defense firm seeking an experienced associate with 1-5 yrs experien...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top