Home

Steven Ostillar: the First Target of Dewey Clawbacks
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Steven Ostillar was the first ex-Dewey partner to face Citibank clawbacks, though a couple other partners have been contacted. These attempts by lenders to regain money from lawyers’ capital investment have long characterized part of the process of large firm bankruptcy. Just a week ago, the Dewey wind-down team proposed that ex-partners pay a yet-to-be-determined amount of money to gain immunity from such litigation, and a certain number of partners must sign up by the end of July for the program to work.

Ostillar is an oil and gas lawyer now working with Akin Gump Strauss Hauer & Feld. Citi contacted him May 31 regarding $209,670 owed on his a loan for $207,000 granted September 2, 2011 (with interest).

Dewey’s practice was to strongly encourage lateral moving partners, or partners who were promoted and gained a higher target compensation, to make a loan with Citi — to take such a loan even months before it was required. Target Compensation is an estimate of how much the partner will make with Dewey, a sum from which 36 percent is calculated to establish how much a partner will have to pay for his capital contribution upon being hired in or promoted.

  
What
Where


Citi Private Bank is the leader in law firm lending, working with 650 firms and 38,000 lawyers. Barclays is another important lender, making capital investment loans for 3,200 partners.

Ostillar’s loan equates to a target compensation of $575,000, but a lot of partners are complaining that their actual compensation fell short of their target compensation. Dewey’s contract in particular had a clause that the contract would default if Ostillar ceased to be a partner, also stipulating that if the firm “dissolves, reorganizes, merges, consolidates, or otherwise ceases to exist in its present form,” it would default.

He joined Dewy in January of 2011 and stayed with the firm until mid-May. Donald Pearce, a lawyer for Citi, contacted him May 21 declaring the loan immediately payable on May 29 according to the default clause regarding his departure. Ostillar had taken the loan because Dewey was strongly encouraging its partners to do so immediately, though deadline for capital contributions were in December.

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!!




Whether more former partners like Ostillar will soon be targeted seems inevitable, and this may spur many former partners to sign up for immunity through the quick settlement pitched by Dewey’s wind-down team. Former partners will meet next week to discuss the details of that possibility.





 

RELEVANT JOBS

Family law attorney Westlake Village

USA-CA-Westlake Village

ZFLG is a boutique family law firm serving LA and Ventura Counties. We want to hire an experien...

Apply now

Personal Injury Attorney

USA-PA-Philadelphia

CAREER OPPORTUNITY   The Quinn Law Group is looking for an exceptional candidate to join ...

Apply now

Criminal Law Attorney

USA-MO-Springfield

AV rated criminal defense law firm seeking full time attorney with at least 1-3 years of experience ...

Apply now

Litigation Paralegal

USA-OR-Portland

Litigation Paralegal Job Description   Mid-sized downtown Portland firm has an immediate ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mergers and Acquisitions Associate Attorney

USA-CA-San Diego

San Diego office of a BCG Attorney Search top ranked law firm seeks Mergers and Acquisitions Associa...

Apply Now

Senior Wealth Management Group Associate Attorney

USA-CA-San Diego

San Diego office of our client seeks Senior Wealth Management Group Associate Attorney with 9 years ...

Apply Now

Bankruptcy Associate Attorney

USA-CA-Los Angeles

Los Angeles office of a BCG Attorney Search top ranked law firm seeks Bankruptcy Associate Attorney ...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top