Home

Former Dewey Partners Trying to Unsettle the $71 Million Settlement
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

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!!






 

Interesting Legal Sites You May Like


BCG FEATURED JOB

Locations:

Keyword:



Search Now

Mid-level Tax Associate Attorney

USA-CA-Los Angeles

Los Angeles office of an AmLaw firm seeks mid-level tax associate attorney with 3-5 years of experie...

Apply Now

Real Estate/Transactional Attorney

USA-PA-Camp Hill

Camp Hill office of our client seeks real estate/transactional attorney with experience. The candida...

Apply Now

Corporate Attorney

USA-WY-Laramie

Laramie office of our client seeks corporate attorney with 2+ years of experience.

Apply Now

RELEVANT JOBS

Legal Assistant - Estate Planning / Tax

USA-NC-Winston Salem

Spilman Thomas & Battle, PLLC, seeks an experienced Corporate Legal Assistant to join its Winston-Sa...

Apply now

Contract Attorney

USA-CA-Anaheim

ESTABLISHED SMALL LAW FIRM IS SEEKING A PRIVATE CONTRACT ATTORNEY FOR CIVIL LITIGATION, CORPORA...

Apply now

Immigration Paralegal

USA-FL-Miami Gardens

$38,000 - $42,000 a year Prepare tables of contents with supporting evidence, fill out legal f...

Apply now

Commercial Litigation and Insurance Defense Associate Attorney

USA-FL-Fort Lauderdale

Kim Vaughan Lerner, a downtown Fort Lauderdale firm practicing in the areas of commercial litigation...

Apply now

SEARCH IN ARCHIVE

To Top