Large Law Firm Faces Class-Action Suit After Laying Off Nearly 700 Legal Professionals

This law firm may be forced to pay for what it’s done after abruptly uprooting the lives of so many.

Over the course of the past two weeks, a law firm with a national footprint went from having a supposedly thriving practice to closing up shop and leaving about 700 legal professionals without work in the blink of an eye. It’s a sad story that we’ve all heard before, but this time around, the law firm in question may be forced to pay for what it’s done after abruptly uprooting the lives of so many.

As we noted last week, Butler & Hosch, one of the country’s largest foreclosure firms, suddenly shuttered its doors on May 14, leaving all of its employees jobless. At the time, the firm’s attorney, Roy Kobert of GrayRobinson, contended that no one had actually been laid off; the firm was merely unable to make payroll. Unfortunately for this failed foreclosure firm, its former employees were unconvinced when it came to Kobert’s “creative legal argument” — two of them have already filed a WARN class-action lawsuit.

Stephen Regal and Gianna Hillis filed suit prior to the three-day holiday weekend, seeking back pay and benefits. As we predicted would happen, Regal and Hillis allege that Butler & Hosch violated the WARN Act because it didn’t provide the appropriate 60-day notice prior to laying off its entire workforce. Here’s more info from the Daily Business Review:

The employees bringing suit say the letter implied the firm’s administration “knew that terminations were anticipated but failed to provide employees, nor state and local authority, with advance notice as required” under the law. They demanded a jury trial.

Plaintiffs attorney Seth Lehrman said the employees worked without pay for three weeks. The complaint suggested the layoffs were the second round for the firm, following a cut of dozens of employees in December.

Besides back pay, the employees are seeking expenses, commissions, bonuses, accrued vacation and holiday pay, pension and 401(k) contributions as well as medical benefits for 60 days.

The proposed class would include all former full-time Butler & Hosch employees, including temporary workers.

On top of working without pay for almost a month, one of our tipsters claims that Butler & Hosch had failed to pay for its employees’ health care costs since at least April, even though it was still collecting monthly premiums. The firm’s former employees are now being hit with insurance denials, leaving them with outstanding medical bills during this period of unexpected unemployment. Sometimes when it rains in Florida, it truly pours.

If your firm or organization is reducing the ranks of its lawyers or staff, whether through open layoffs or stealth layoffs or voluntary buyouts, please don’t hesitate to let us know. Our vast network of tipsters is part of what makes Above the Law thrive — we’ll never ignore you. You can email us or text us (646-820-8477). Thank you very much!

(Flip to the next page to see a copy of the class-action suit filed against Butler & Hosch.)

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