Anatomy of a Dissolution: Morgan & Finnegan Still Hasn’t Paid Severance
Over a month ago, we reported that Morgan & Finnegan was bouncing checks to attorneys and staff that were left behind when the vanguard of M&F’s partnership jumped ship to Locke Lord. Back in February, we reported:
Is it that the firm can’t make payroll, or is that it won’t make payroll?We know a number of former Morgan & Finnegan partners are getting ready for their new practice at Locke Lord, but it looks like those people might not be done with their old practice quite yet.
Well, here we are in March, there are Morgan & Finnegan people that have been out of work for two and a half months now. There are still no severance checks.
Where is the money? About a month ago, M&F people received this terse letter:
M & F issued WARN checks drawn on its account with J.P Morgan Chase (“Chase”) that was fully funded to cover those checks. Without prior notice to M & F, Chase froze the account and rejected the checks when they were presented for payment. The transition team has been trying to resolve this situation with Chase, both as to WARN payments and future WARN payments. But, we do not know, at this time, what the outcome of those efforts will be.
As Heller proved, blaming the bank — while doing nothing for former employees — is a good press strategy. However, in this case, the bank is fighting back.
Details after the jump.
On February 27th, JPMorgan Chase filed suit against Morgan & Finnegan. According to the compliant:
69. Defendant is in default pursuant to the terms of the Facility, the Letter of Credit Agreement and the Security Agreement.70. Pursuant to such agreements, there is presently due and owing to Plaintiff from Defendant the sum of $4,145,796.33 plus interest costs and fees, including
attorney’s fees.
Locke Lord is not named in the complaint. But that doesn’t mean JP Morgan is unaware of the all the money the firm threw at the Morgan & Finnegan partners that jumped ship. In fact, Above the Law’s reporting on the matter even received a shout-out in the complaint:
33. Pursuant to press releases issued by Locke Lord (copies of which were obtained from the Locke Lord website and are annexed hereto as Exhibit E), as of February 2,2009 approximately 30 attorneys fiom M&F joined Locke Lord in some manner of equity partner, income partner, associate and of counsel.34. Upon information and belief, based upon letters allegedly sent by Locke Lord to John Sweeney and James Gould of M&F, seven of the thirteen partners joining Locke Lord joined as equity partners and six joined as income partners. These letters, which are represented in a public forum to be copies of the actual letters sent to Mssrs. Sweeney and Gould, are annexed hereto as Exhibit F. These letters were obtained from the web site: htt~://abovethelnw.com/2009/01/1nor~fainn nepan locke 1ord.php
We’ll say it again. Former Morgan & Finnegan partners now at Locke Lord might not be finished with their old job just yet. As one tipster put it:
The contact person at Locke Lord no longer answers calls or calls people back. John Sweeney, former managing partner, has told one associate not to expect their money and to try to find employment as soon as possible…. Personally, I am completely F*$%ed.
It looks like former Morgan & Finnegan employees will have to wait in line to get their money. But how can the current Locke Lord partners, who were well compensated when they left Morgan & Finnegan, just ignore the wreckage they left behind?
JPMorgan v Morgan Finnegan.pdf
Earlier: Nationwide Dissolution Watch: Is Morgan & Finnegan Bouncing Checks?
Nationwide Dissolution Watch: Morgan & Finnegan?
(45) Comments
Comments
Firsty
Second!!!!!!!!!
lols still better then working for lenny dykstra
http://men.style.com/gq/features/landing?id=content_8558
Locke Lord is a shit shop that feeds you Texas sized feces.
This is how Locke Lord does business now. The Morgan & Finnegan partners that came over will fit right in.
"However, in this case, the bank is fighting bank."
In the words of Gob Bluth, c'mon!
Here are some tips for the unemployed and underpaid...
http://www.youngtexaslawyer.com/
"The bank is fighting bank"?
Sue Locke Lord...it was a merger not a dissolution.
"This is how Locke Lord does business now."
They don't pay severance checks when they dissolve too? You're right M&F partners WILL fit right in.
Locke Lord is such a dump. I have know idea how they have made it this far.
V&E 3rd yr
I want my 3500 sq ft and a mule!
Locke Lord's Houston office smells like raw sewage and bovine sweat.
I've got two words for you: waffles.
Shit, I guess that's only one word . . .
11--I don't "know" how you've made it this far.
11 - if you "know," why don't you share?
File a class action .... what else are you doing?
I bet that Locke Lord serves chicken fried steak and sweet tea at its cafeteria. Available side dishes: deep fried okra, mac-and-cheese, and humiliation.
abovethelnw.com?
When she says "know," she really means "yes".
Knowing is half the battle.
This is our receptionist, Pam. . . . If you think she's cute now, you should have seen her a couple years ago.
Does the "public forum" representation operate as an exception to hearsay? I've never dealt with that.
Her mouth said "know"
but her eyes screamed "YES"
Maybe the big law associates should have saved some of their 160k starting salary. You are getting very little sympathy from me because you leveraged yourself and are now out of work.
Can we get some Lebowski quotes going, please?
Can we get some Lebowski quotes going, please?
Dumb question, I know, but was Locke Lord f/k/a Lord Bissell & Brooke?
Locke Lord used to be in the port-a-potty business. Now their Houston office just smells like feces and sweat.
Thacher Proffitt. Tvetenstrand. Kudenholdt. Cotins. Scum.
25/26 -- The Dude abides.
Yes, r24--If someone makes enough money, it justifies stiffing them with a bad check.
that severance really held the room together
THIS IS WHAT HAPPENS, LARRY! THIS IS WHAT HAPPENS WHEN YOU FUCK A STRANGER IN THE ASS!
The question is, where's the money? I'm guessing the Cayman Islands.
25/26/30--the rug ties it all together.
Some men are even uncomfortable saying the word: severance.
Look at it... a trophy law firm, in the parlance of our times, you know, and they, uh, uh, owe money all over town, including to known pornographers, and that's cool... that's, that's cool, I'm, I'm saying, they need money, man. And of course they're going to say that they don't have it, because... they want more, man! They got to feed the monkey, I mean uh... hasn't that ever occurred to you, man? Sir?
The ship be sinking...
This is law, not nam, there are rules
Your money is being held by a kid named Larry Sellers. Real fucking brat, but I’m sure your goons can get it off him. I mean, he’s fifteen. Flunking social studies
What is taking them so long to declare bankruptcy? They are heartless scum bags who should be led away in handcuffs. They wrote rubber checks and have the nerve to blame everyone but themselves. It is wonder that M&F didn't go under years ago.
This figures; the scoundrels always win. James Gould's brother was an in-house attorney at Du Pont, but he died of cancer a couple of years ago. Wonder what Gould's nephew is doing? He's a DC lawyer.
M&F filed for bankruptcy on the 18th...
http://www.law.com/jsp/article.jsp?id=1202429152961&rss=newswire
Screwed M&F employees need to file a proof of claim for any hope to receive your WARN money. Good luck.
Any updates?
Any updates?