Dewey Offers Alternative Incentives to Former Partners Who Recoup More
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

On Thursday, Dewey & LeBoeuf offered new incentives to its former partners for participating in a settlement in which the former partners are expected to pay up to $90.4 million to the estate of the law firm. The news came to light after a group of retired partners called upon the bankruptcy court to appoint an independent trustee or examiner.

The bankruptcy team of Dewey has been trying to recoup money from former partners in an effort to pay its creditors and avoid potential clawback claims the estate would otherwise need to bring against its former partners and enter lengthy legal battles. The proposal of settlement made by the Dewey estate has been forwarded to some 672 former partners, who have been asked to contribute sums ranging from $ 5000 to $ 3.5 million.

According to four former Dewey partners who briefed on the proposal, the latest plan includes discounts on individual contributions based on amounts the firm actually recovers, and amounts it manages to recoup from former clients, on its outstanding bills. According to the former partners who requested anonymity, the new terms were discussed with them during a private conference call.


Three former Dewey partners said that subject to a maximum discount of 5%, partners who collect a certain amount of outstanding receivables from clients through September 15, would be eligible for an alternative discount. Thursday’s incentives are intended to boost the total recoveries of the firm. While the estate needs to recoup at least $ 50,000,000 to submit the settlement for court approval, the estate has set a target of recouping $ 65 million-$ 70 million. If this target is achieved, then the contributions of partners could be discounted by 2.5% and it could go up to 5% if the target of recouping $ 70 million was achieved.

The settlement offered by Dewey to its partners has already undergone three major revisions and consequently has been delayed thrice. The most recent date by which settlement is sought is August 14.

Also on Wednesday, a group of 54 retired partners and spouses of deceased partners, asked the bankruptcy judge to appoint an independent trustee or examiner. The retirees were former partners at LeBoeuf, Lamb, Greene & MacRae before that firm merged with Dewey Ballantine in 2007. The LeBoeuf Lamb retirees questioned the legal basis for the estate’s demand that they pay back their pension earnings since January 2011, when they were not active partners at Dewey.

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!!

Donald Greene, a former chairman and name partner at LeBoeuf Lamb, said “it is an outrage that the retirees are being asked to return pension payments, earned for those many years of service, while some of the partners who caused the failure of the firm are not being held fully accountable.”



Probate Paralegal / Assistant


Waggoner & Bruehl, PA, a small Law Firm in Pine Island, Florida, is seeking a Probate and Trust Admi...

Apply now


USA-CA-Costa Mesa

Prominent AV Rated Orange County business bankruptcy and commercial litigation law firm boutique see...

Apply now

Litigation Mid-Level Associate Attorney


Hoban Law Group is currently seeking an exceptional mid-to-senior litigation attorney with multi-fac...

Apply now

Real Estate Paralegal - Immediate Opening

USA-NY-Sheepshead Bay

$35,000 to $60,000 Annually Benefits Offered Medical Employment Type Full-Time Why Wo...

Apply now




Search Now

Corporate/Transactional Attorney

USA-IA-Des Moines

Des Moines office of a BCG Attorney Search Top Ranked Law Firm seeks corporate/transactional attorne...

Apply Now

Corporate Attorney / Counsel

USA-NY-New York City

New York City office of a BCG Attorney Search Top Ranked Law Firm seeks corporate attorney with 5+ y...

Apply Now

Housing Finance Associate Attorney


Minneapolis office of a BCG Attorney Search Top Ranked Law Firm seeks a housing finance associate at...

Apply Now

Most Popular


To Top