Bankruptcy

This past Friday, we broke the news of the troubled Dewey & LeBoeuf law firm issuing WARN Act notice to its employees. This federal law generally requires an employer “to provide notice 60 days in advance of covered plant closings and covered mass layoffs.”

That was Friday, May 4. Earlier this week, Dewey informed many support staff members that their last day of work would be this Friday, May 11. It then informed many associates that their last day of work will be this coming Tuesday, May 15. Both staffers and associates will be paid through the 15th and will have health insurance through May 31st.

My math skills have atrophied from disuse, but I am still capable of counting to 60. And it seems to me that Dewey did not provide its employees with 60 days notice of its mass layoffs.

So, Dewey have any WARN Act liability?

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* Dewey get the chance to reap revenge against all of the partners who defected? Only in bankruptcy clawback suits. Many are keeping an eye on the Coudert and Thelen Chapter 11 cases to see if they’ll have to pay up. [Thomson Reuters News & Insight]

* “People have bigger concerns on their mind than whether Elizabeth Warren is 1/32 Cherokee.” Well, Scott Brown isn’t most people. He wants all of her job records from her career as a law professor. [Washington Wire / Wall Street Journal]

* “We are not anti-gay, we are pro-marriage.” I don’t think “pro-marriage” means what you think it means. Last night, North Carolina voters passed a constitutional amendment banning same-sex marriage in the state. [CNN]

* Mike McQueary is filing a whistleblower lawsuit against Penn State. Hate to say it, but that’s definitely not the first time Penn State’s seen a lawsuit over something being blown in the locker room. [Centre Daily Times]

* Washington University in St. Louis Law is launching an online LL.M. program for foreign lawyers for the low, low price of $48K. The exchange rate surely can’t be good enough for that to be worth it. [New York Times]

* Joran van der Sloot will likely be extradited to the United States from Peru this summer. His lawyer, Maximo Altez, isn’t a fan, because he thinks that we’ll charge his client with murder. America, f**k yeah! [ABC News]

* Oh, of course a member of the Village People’s claim just had to be the test case for 35-year copyright transfer termination. Well, kudos to you, Mr. Motorcycle Cop. You’re a real “Macho Man.” [Bloomberg]

Last night, when we reported the news of secretarial staff layoffs at Dewey & LeBoeuf, we mentioned a prediction of additional layoffs today — i.e., Tuesday — or later in the week. That prediction has already come to pass — like so many predictions about Dewey, sadly.

Last night, they came for the secretaries. This time, they’ve come for the associates….

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The revolving door continues to spin, quite furiously, at the rapidly collapsing Dewey & LeBoeuf. We mentioned some of the latest partner departures in last night’s post (which we updated again this morning).

These are major defections, which strike at the heart of what was left of the firm. In case there was any doubt after last Friday’s WARN Act notice or yesterday’s big layoffs, it may soon be time to stick a fork in LeBoeuf.

So what’s the latest word on who is going where?

double red triangle arrows Continue reading “Dewey Have Any Partners Left To Be Poached? Not Many After the Latest Departures”

On Friday, we broke the news of Dewey & LeBoeuf issuing a WARN Act notice to its U.S. employees. As explained by the U.S. Department of Labor, the WARN law generally requires an employer “to provide notice 60 days in advance of covered plant closings and covered mass layoffs.”

We noted, however, that employees shouldn’t be lulled into complacency by the 60-day requirement. As Elie wrote, “Dewey employees shouldn’t expect to just show up to work every day until Independence Day. Remember, we’ve learned from the Heller dissolution and other firms’ dissolutions that things tend to happen very quickly.”

Very quickly indeed. We are now hearing reports that this Friday, May 11, will be the last day for an unknown number of D&L employees….

As usual with the fast-moving Dewey story, we have multiple UPDATES, including some from Tuesday morning, after the jump.

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The U.S. employees of Dewey & LeBoeuf received a letter today that many of them have been expecting for a long time.

It was a note warning people to prepare for the worst. It was a letter finally admitting to firm employees that “it is possible that adverse developments could ultimately result in the closure of the firm.”

So, now we’re on notice…

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Yesterday, partners at Dewey & LeBoeuf received their $25,000 monthly partner draws. For many of them, that might be the last check they receive from the embattled firm.

Over 100 Dewey partners have left the firm since the start of the year. But we now have reports that as many as 200 people, including a large number of partners, will be departing today. Apparently, “the banks” (i.e., Dewey creditors) are calling the shots now. As we reported yesterday, we seem to be moving forward toward a May 15th end date for Dewey.

But as they say in Lion in Winter: when the fall is all there is, it matters….

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Since this afternoon’s big Dewey & LeBoeuf development, namely, the defection of Morton Pierce and seven other partners to White & Case, there has been some additional news. It concerns the timing of Dewey’s possible shutdown, a subject that has been the subject of much speculation lately.

One rumor had the firm closing its doors as early as tomorrow. Another suggested a date closer to Memorial Day. The truth may lie somewhere in between: according to sources cited by Am Law Daily (reg. req.), “Dewey is poised to close by May 15 and possibly sooner.”

(Also at Am Law, a very handy Dewey Departure Tracker. It lists each defector’s name, practice area, departure date, new firm, and location. It’s a great resource.)

The May 15 date makes some sense. As reported by Thomson Reuters News & Insight, on Monday the firm received a two-week extension from lenders for renegotiating its $100 million credit line. Assuming the parties can’t reach a new agreement, which seems like a good assumption right now, the new deadline would fall on or about May 15, the shutdown date mentioned by Am Law.

Compared to other outlets, we’ve been focusing a lot on the human side of the Dewey story. We’ve talked about the partners, including the particular partners who might be blamed for Dewey’s demise. We’ve talked about the staff, bringing you a paralegal’s lament.

Tonight let’s consider the fate of would-be Dewey associates, both full-time and summer associates, who now find themselves left in the lurch….

As usual, UPDATES — including one relating to support staff — after the jump.

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Dewey & LeBoeuf's sign at 1301 Avenue of the Americas. (Photo by David Lat. Feel free to use.)

Let’s take a step back from the hurly-burly of day-to-day, hour-by-hour coverage of Dewey & LeBoeuf, the once-powerful law firm that could soon find itself in bankruptcy or dissolution. We will return to bringing you the latest Dewey news in tomorrow’s Morning Docket. (Of course, as you may have noticed, we added many updates to Tuesday night’s story; refresh that post for the newest developments.)

Let’s take a step back, and ask ourselves: Who is to blame for this sad state of affairs? And what lessons can be learned from the Dewey debacle?

Multiple UPDATES, including a short bio of Stephen DiCarmine, after the jump.

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Dewey & LeBoeuf's sign at 1301 Avenue of the Americas. (Photo by David Lat. Feel free to use.)

“Our catering service requires a credit card; client matter numbers no longer accepted. Seamless food ordering requires a credit card or a corporate card.”

“It’s not clear that we still have health insurance.”

“Dewey has cut off subscriptions, and expenses are no longer being reimbursed.”

“Everyone is pretty much packing up. Bankers boxes are on backorder in supplies.”

“Dewey is quietly removing the art from the walls. Perhaps it belongs to the creditors?”

These are some of the sad stories we’re hearing out of Dewey & LeBoeuf today. Let’s discuss the latest news and rumor coming out of the deeply troubled law firm….

Multiple UPDATES and new links, after the jump (at the very end of this post). The Dewey story is moving so quickly that we will do multiple updates to our existing posts instead of writing a new post every time there’s a little additional news to report. Otherwise half of the stories on our front page would be about Dewey, and there is other Biglaw news to report — e.g., the new profit-per-partner rankings from Am Law, salacious lawsuits against prominent D.C. law firms, etc.

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