Home

Former Dewey Partners Trying to Unsettle the $71 Million Settlement
Download PDF

On Thursday, attorney David Friedman, who is representing a group of former Dewey & LeBoeuf partners, opposed the $71.5 million settlement between former partners and the estate of the now defunct law firm. In a long hearing before the U.S. Bankruptcy Judge Martin Glenn, Friedman grilled Joff Mitchell over his impartiality in structuring the settlement. Joff Mitchell is leading the liquidation of the Dewey estate.

It appears that some former partners who have objected to the settlement have asked the court to appoint an independent trustee to investigate the fairness of the settlement.

Friedman drew attention to the fact that Dewey’s wind-down team included some of the former leaders of the firm and could possibly be lenient towards their past cronies. Since all of Joff Mitchell’s decisions need to be approved by the wind-down team, the constitution of that group would influence Mitchell’s decisions.

  
What
Where


During the three-hour hearing on Thursday, Friedman also questioned a member of Dewey’s unsecured creditors committee over his decision to support the settlement that excluded three top executives of the firm including the former chairman Steven Davis. The member of the unsecured creditors committee, Paul Gendler, whose company is owed $43 million, said that his decision was based on information provided by the wind-down team of the firm, which had apparently said, “the folks that were really responsible for setting the tent on fire are the three folks who are excluded.”

Apparently, it was forwarded by the Dewey wind-down committee that the top executives were excluded from the settlement, as claims regarding them should remain open to separate proceedings. However, such a strategy also leaves further proceedings against those “responsible for setting the tent on fire” undecided and in question, while those not responsible are forced to reach a settlement. Of course, this also leaves the chance of those three executives later claiming benefits of the same settlement on the basis of equity. And, as Friedman’s submissions indicate, if they had been included in the present settlement, then the cards may have fallen differently.

Currently, more than 450 of the former 672 former partners of Dewey have assented to the settlement. If the settlement were approved by the court, then those who are included within its ambit would need to pay between $5000 to $3.5 million to prevent future clawback proceedings by the estate.

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!!






 

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Defense Attorney with 3-4 years of litigation experience

USA-CA-San Francisco

San Francisco office of our client seeks defense attorney with 3-4 years of solid litigation experie...

Apply Now

Attorney with 3-7 years of litigation experience

USA-IL-Chicago

Chicago office of our client seeks attorney with 3-7 years of litigation experience. The candidate s...

Apply Now

Mid-level IP Litigation Attorney with electrical engineering experience

USA-CA-San Francisco

San Francisco office of our client seeks mid-level intellectual property attorney with 3-5 years of ...

Apply Now

Labor and Employment Attorney with 3-4 years of litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks labor and employment attorney with 3-4 years of litigation ex...

Apply Now

RELEVANT JOBS

Trust Administrative Associate / Office Manager

USA-NV-Reno

FIRM OVERVIEW: Laurel Trust Company (LTC) a retail trust company under organization in Reno, Nev...

Apply now

Associate Attorney

USA-NV-Minden

Over my objection, and after nineteen years together, my 69 year old partner is retiring.  I ne...

Apply now

Part-time Paralegal / Legal Assistant

USA-GA-McDonough

Family Law and Criminal Defense law firm is seeking part-time (20-30 hours per week w/ Flexible sche...

Apply now

Legal Assistant (Dallas)

USA-TX-Dallas

We are a growing firm in need of an experienced, reliable, flexible, and proactive litigation Legal ...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top