* When Dewey need to hire our own lawyers? Now would be good. As D&L leaders mull bankruptcy options, more than 50 former partners are expected to hire Mark Zauderer to defend them against potential clawback claims. [New York Law Journal]
* Day three of jury deliberations in the John Edwards campaign finance trial came and went without a verdict. The former presidential candidate must be wishing that he hadn’t came and went, because then there wouldn’t be a trial at all. [ABC News]
* Yet another law firm is walking away scot-free from the Dreier drama without losing a single dime. Ruskin Moscou Faltischek was able to get Fortress Investment Group’s case tossed on appeal. [Thomson Reuters News & Insight]
* A Facebook investor has sued NASDAQ, claiming that the stock exchange bungled the social networking site’s IPO. With FB’s stock price dropping as we speak, he’s seeking class-action status. Like. [Bloomberg]
* Nafissatou Diallo amended her civil suit against Dominique Strauss-Kahn to include a claim alleging his “animus towards women.” Really, she just wants to introduce evidence of DSK’s sordid sexual past. [Reuters]
* Yesterday marked day two of jury deliberations without a verdict in the John Edwards campaign-finance violations trial. The former presidential candidate says he’s “doing OK,” but you know he’s secretly pissing his pants over going to prison. [ABC News]
* Martin Weisberg, a former Baker & McKenzie partner, pleaded guilty to money laundering and conspiracy to commit securities fraud. He faces up to 15 years for both crimes. Like he wasn’t earning enough as a Biglaw partner. [New York Law Journal]
* A judge told two fashion houses to leave it on the runway, and not in the courtroom, but that’s not going to stop Gucci from collecting its due. Guess owes the company $4.66M for trademark infringement. [Bloomberg]
* If you’re wondering what you’re going to have to do to get your student loans discharged in bankruptcy, it’s really quite simple. Get diagnosed with an autism spectrum disorder, and you’ll be set. [National Law Journal]
* What’s the difference between looted art and art looted by the Nazis? The Hitler part. Proposed art legislation will ban all museum recovery claims, except those of families affected by the Holocaust. [New York Times]
* “”I can’t believe f**king Allred called you!” In a total attention whore battle royale, Okorie Okorocha has sued Gloria Allred for allegedly stealing both of his clients in the John Travolta gay sex scandal. [CNN]
As we reported over the weekend, it’s looking like Dewey & LeBoeuf will soon find itself in bankruptcy (perhaps voluntarily, perhaps not). The specter of bankruptcy raises a question for the many former partners of Dewey: dude, where’s my car capital contribution?
Let’s find out — and get the latest dispatches on the Dewey death spiral, including news of a new home for former vice chair Ralph Ferrara….
If you’re looking for the latest news on the imploding law firm of Dewey & LeBoeuf, check out Morning Docket. There are links about the ongoing criminal probe, an updated WARN Act notice, the firm’s claim that it is not “officially closed,” and a possible involuntary bankruptcy.
It might make sense for certain creditors to push the firm into bankruptcy, since under the status quo — i.e., the firm effectively liquidating itself outside of court — it’s not clear that similarly situated creditors are being treated equally. At the very least, there’s a lack of transparency, as bankruptcy lawyer Annette Jarvis of Dorsey & Whitney pointed out to Thomson Reuters. Jarvis represents one group of creditors that might be getting the short end of the stick: 51 retired partners from predecessor firm LeBoeuf Lamb, whose pensions could be in jeopardy.
As we’ve done in the past, let’s try to find some light amid the darkness. As one victim of the Dewey debacle told us, “Sometimes after you’re done crying about something, the best medicine is laughter.”
We agree. So, Dewey have a meme contest for you? Of course we do!
Keep reading for some sample Dewey memes, as well as the contest rules….
* What information Dewey know about the ongoing criminal investigation that’s being conducted by the Manhattan District Attorney’s office? From the sound of it, ex-chairman Steven Davis’s LeBoeuf may be cooked. [Am Law Daily (reg. req.)]
* Dewey know when to admit defeat? A spokesman for the failing firm has insisted that it’s “not formally closed.” Great, because that’ll certainly make it easier to prepare for the involuntary bankruptcy filing that’s in the works. [Reuters]
* Meanwhile, D&L amended its WARN notice with the New York State Department of Labor to raise its total employee count by 100, for a grand total of 533 — 433 of whom have been laid off thus far. [Bloomberg]
* “The defense wasn’t sexy, but the defense doesn’t want sexy. It wants an acquittal.” John Edwards’s legal team rested its case yesterday without calling any of the major players involved to testify. [Associated Press]
* Show me your papers: the California Supreme Court will be deciding whether a law license should be granted to an illegal immigrant who’s already been certified by the State Bar of California. [Los Angeles Times]
* Thank you, Jesus! Utah’s S.J. Quinney College of Law now has an additional $4M in its collection plate to put toward a new building thanks to the Church of Jesus Christ of Latter-day Saints. [National Law Journal]
In our last full post on Dewey & LeBoeuf, the fast-fading New York law firm, we tried to find some moments of humor in this generally depressing story. Now we’ll return to the hard — and gloomy — Dewey news. (We mentioned several D&L items in today’s Morning Docket.)
Without further ado, let’s find out what’s going on….
This is my first column for Above the Law on the Supreme Court. In an effort to help me generate effective linkbait, the Supreme Court issued an opinion yesterday at the intersection of bankruptcy and tax law for farmers — Hall v. United States.
Basically, Hall means that, if you’re a farmer and you declare bankruptcy on your farm under Chapter 12 (“the one just for farmers”), and, while in bankruptcy, you sell your farm, you will still have to pay capital gains tax on the sale of your farm — any liability to the IRS is not dischargeable.
Perhaps the most exciting part of the opinion is that Ninth Circuit was affirmed. Though, in fairness, the Ninth Circuit opinion was written by Judge O’Scannlain, so it’s not as though the Supreme Court affirmed Judge Reinhardt.
Also, farmers who are in bankruptcy and sell their farms now have to pay tax on the profits from those sales. I’m sure much of the Midwest is rioting in response.
For those who practice tax law, bankruptcy, or farming law, you will definitely want to read the opinion and some of the write-ups on it.
But the most exciting part of the morning involved new members of the Supreme Court bar….
Based on recent remarks by current and former leadership at Dewey & LeBoeuf, it seems that the firm is going to end with a whimper, not a bang. The current plan apparently involves no bankruptcy filing or dissolution vote, but just the defection of one partner after another, until nobody is left.
Ed. note: The Asia Chronicles column is authored by Kinney Recruiting. Kinney has made more placements of U.S. associates, counsels and partners in Asia than any other recruiting firm in each of the past seven years. You can reach them by email: email@example.com.
Things have changed recently in Korea – a few of our US and UK client firms are looking, very selectively, for a lateral US associate hire. Until just recently, there was not much hiring like this going on in Korea, since US and UK firms started opening offices there. We have already placed two US associates in Korea in the past month at top firms. Most of the hiring partners we work with in Korea do not actively work with other recruiters.
If you are a Korean fluent US associate in London, New York or another major US market, 2nd to 6th year, at a top 20 firm, with cap markets or M&A focus (or mix), or project finance background, and you are interested in lateraling to Korea to a top US or UK firm, please feel free to reach out to us at firstname.lastname@example.org or email@example.com. Our head of Asia, Evan Jowers, was just in Korea recently, and Evan and Robert Kinney will be in Korea in a few weeks. We are in the process of helping several firms open new offices in Korea (a number of which are interviewing our partner level candidates) and also helping existing offices there fill openings.
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