The bankruptcy case of the dying Dewey & LeBoeuf rolls on. As we mentioned yesterday, other Biglaw firms are getting business out of its burial. For example, Brown Rudnick is representing the official committee of unsecured creditors, and Kasowitz Benson is representing the official committee of retired D&L partners. (This group is separate from the 60 or so ex-partners who have hired Mark Zauderer to fight potential clawback lawsuits and other claims that the Dewey estate might bring against former partners and their new firms.)
If asked to name people who might be worried about owing money to the Dewey estate, some observers might cite “the Steves”: former chairman Steven H. Davis, and former executive director Stephen DiCarmine. Some have accused the Steves of mismanaging D&L’s affairs (or worse), contributing to the collapse of a firm that was once in the top 30 U.S. law firms by total revenue.
But if you’re thinking that Steve DiCarmine wants to pay the Dewey estate some money and get on with his
tanning life, think again. As it turns out, Steve DiCarmine is claiming that Dewey owes him money….
Here’s a report from the WSJ Law Blog:
A colorful figure noted equally for his charisma and ever-present tan, Mr. DiCarmine was one of the firm’s non-partner managers who cut deals allowing them pull in about $2 million a year in salaries and bonuses, as WSJ reported in April.
On Friday, Mr. DiCarmine filed a notice of appearance in Dewey’s Chapter 11 bankruptcy case. According to his lawyers at Hughes Hubbard & Reed LLP, he has a claim on the estate under the aforementioned employment contract.
The WSJ ruminates on how DiCarmine’s claims might be received by former Dewey & LeBoeuf lawyers:
One wonders how [DiCarmine seeking money from the estate] will play with those ex-partners who blame DiCarmine and former chairman Steven Davis — known collectively as “the Steves” — for financial mismanagement, including a spree of lateral hires and lucrative pay guarantees for some star lawyers, that they said led to the firm’s demise. Particularly since the Dewey estate has said it intends to claw back partner earnings as it scrounges through the metaphorical couch cushions for cash to satisfy the more than 5,000 creditors owed money by the firm.
In the end, DiCarmine’s assertion of claims against Dewey probably represents posturing on his part. It reminds me of former vice chairman Morton Pierce claiming that the firm owes him $61 million, presumably in an effort to protect himself against clawback claims.
DiCarmine was one of the most fascinating figures of the Dewey drama. Readers can’t seem to get enough information about him. So today we bring you pictures of his Lawyerly Lair — the office that this man called home, while collecting his $2 million a year salary from the firm….