Biglaw

Former Dewey & LeBoeuf Partner Challenges Capital Loan Liability
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Charles Landgraf, the former managing partner of the Washington office of Dewey & LeBoeuf, successfully challenged his liability for a capital loan made by Barclays Bank. The U.K. High Court rejected Barclay Bank’s petition for summary judgment in the matter and opined there was sufficient ground to believe that Landgraf would be able to prove his assertions.

Landgraf was one of the last four lawyers who led the office during the last days of Dewey & LeBoeuf, trying to hold morale together. He was also a vocal critic of the management’s inequitable policies. Barclays’ sued to recover the $486, 000 paid into the dying law firm’s account as partnership capital on behalf of Landgraf.

  
What
Where


But Landgraf maintains, among other assertions that the money was actually aimed at keeping the law firm afloat, and the bank is playing foul.

The agreement said on its face that the money was “to assist the borrower with a partnership capital subscription,” but, Landgraf proved, his capital account – which should have been one third of his annual compensation – was always maintained, and he did not need a loan to meet his obligations.

Landgraf asserted that when Dewey fell on financial troubles, he was approached by the firm’s management and made aware of the Barclays Capital Loan Program, or BCLP. He claims he was told the BCLP was an instrument through which the firm could substitute its bank debt in the capital account and the burden of repaying the capital and interest of any loans was that of the firm, and not of the individual partners.

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, after the Dewey & LeBoeuf went bankrupt, Barclays Bank turned around and said the individual partners would have to bear the liability of repaying the loans.

While dismissing the application of Barclay’s Bank for a summary judgment, the court observed, “it is not fanciful to think that, with the benefit of disclosure, the position at trial may well be that Mr. Landgraf can show that all concerned, including the bank, knew that the true purpose of the loan was to provide the firm with the liquidity which it required to meet its day-to-day liabilities, not to enable him to make a capital contribution to the firm under the provisions of the partnership agreement.”





 

RELEVANT JOBS

Paralegal / Legal Assistant

USA-NY-Staten Island

STATEN ISLAND PLAINTIFFS PERSONAL INJURY LAW FIRM IS SEEKING A FULL TIME/PART TIME PARALEGAL/LE...

Apply now

Attorney

USA-WA-Walla Walla

When the COVID crisis hit our state, we continued serving clients in our community. We are...

Apply now

Associate Attorney

USA-FL-Orlando

A/V Rated Downtown Orlando Law firm of Fisher Rushmer, P.A. is seeking an associate with 2 - 6 years...

Apply now

Legal Extern / Litigation Law Clerk

USA-VA-Alexandria

Old Towne Associates, P.C. (Alexandria, VA) Legal Extern Openings - Class of 2021 and 2022 ...

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