Chapter 7

Although Am Law and ATL covered the story first, the long spread in The New York Times alerted the whole world to the woes of Gregory Owens, a former Dewey partner who’s now a bankrupt non-equity partner at White & Case.

The legal blogosphere naturally lit up over this story, with Scott Greenfield dispensing his usual simple justice and the Volokh Conspirators (and their many commenters) debating Owens’ personal and professional worth.

But my emailbox filled up, too, with assorted reactions from people at all levels in the law. The most interesting rant — and the one I’m sharing with you today — came from a person who looks a lot like Owens; he or she is a non-equity partner at a Vault 50 firm who’s in his or her 50s. This person disagrees violently with the conventional wisdom about non-equity partners. My correspondent sings their praises and insists that both law firms and many law firm consultants terribly misjudge the value that non-equity partners provide to their firms. . . .

double red triangle arrows Continue reading “A Non-Equity Partner’s Rant”

Let’s be honest: despite being the Biglaw version of the Titanic, the collapse of Dewey & LeBoeuf could have been worse. Even though the Dewey dissolution constituted the largest law firm collapse in history, many D&L lawyers and staff were able to find new employment. Even Steve Davis, the disgraced ex-chairman of Dewey, landed a new gig.

But not everyone emerged unscathed. Some attorneys and staffers never got back on their feet professionally. Many Dewey partners scored new positions, but not all of them took all of their people with them to their new firms.

And even some partners are still suffering. In fact, one former Dewey partner, now a partner at another major law firm, recently filed for personal bankruptcy….

(Please note the UPDATES at the end of this post.)

double red triangle arrows Continue reading “Dewey Know A Biglaw Partner Driven Into Personal Bankruptcy By The Firm’s Collapse?”

Natalie Khawam and Jill Kelley

Yeah yeah yeah, we know, we’re not supposed to be making a federal case out of an affair. But this one’s just so juicy that we couldn’t resist.

On the one side, we’ve got national security analyst, author, and side piece Paula Broadwell sending harassing emails to social liaison and “honorary consul general” Jill Kelley, telling the party planner to butt out of her relationship with former CIA Director David Petraeus. On the other side, we’ve got Jill Kelley exchanging hundreds of “flirtatious” emails with General John Allen, the top U.S. commander in Afghanistan.

And stuck in the middle of this gigantic hot mess (aka the Petraeus Pentagon) is Jill Kelley’s twin sister, Natalie Khawam, who just so happens to be a lawyer — a lawyer who’s been characterized by a judge as “psychologically unstable.”

How can this possibly get any better? It’s like we’re watching a new Real Housewives series play out in real life. Attractive women (and twins!), sex, scandal… the only thing that’s missing is money.

Well, we know how our readers love money, so we’ve got the dirt on Ms. Khawam’s cash (or lack thereof)….

double red triangle arrows Continue reading “Three Words That Describe Petraeus/Allen Gal Pal Jill Kelley’s Sister: ‘Unstable,’ Broke… and Lawyer”

Say what? One of Above the Law’s favorite subjects, celebrity lawyer and author Elizabeth Wurtzel, got attacked by a penguin?

Yes — in a manner of speaking. Penguin Group, the publishing mega-house, recently sued the bestselling and critically acclaimed authoress, seeking the return of her advance money. Other prominent authors have been sued as well.

How much does the publisher want back from La Wurtzel? What are her possible defenses? And who are some of the other high-profile defendants being pursued by the angry Penguin?

double red triangle arrows Continue reading “Lawsuit of the Day: Penguin v. Wurtzel (and Other Authors)”

Isn’t Jewel v. Boxer a great case name? Doesn’t it sound like one of the classics of the 1L curriculum, right up there with Pierson v. Post, Hawkins v. McGee, and International Shoe?

It is definitely a case that lawyers ought to know. This appellate decision, handed down by a California court in 1984, remains the leading case on how to divvy up attorneys’ fees generated by cases that were still in progress at the time of a law firm’s dissolution. Dewey care about this case? Absolutely.

But Jewel might not maintain its status as the key precedent on so-called “unfinished business,” at least if one judge has anything to say about it. Check out an interesting ruling that just came down from the Southern District of New York, arising out of one of the biggest Biglaw bankruptcies of recent years….

double red triangle arrows Continue reading “A Welcome Ruling for the New Law Firms of Refugees from Bankrupt Firms”