The law firm of Dewey & LeBoeuf now finds itself in Chapter 11, but the story of Dewey has not yet reached its end. We’ll now turn the pages in the Bankruptcy Reporter.
Yesterday Judge Martin Glenn of the U.S. Bankruptcy Court allowed Dewey to use cash collateral to fund its wind-down operations, even though this collateral should really be seen as belonging to the firm’s secured creditors. Judge Glenn initially denied this request, at least when it was coupled with giving the secured creditors a lien on recoveries from future litigation. In deciding to let Dewey tap into the cash, Judge Glenn did not decide what the lenders might get in exchange for letting the firm use their money. That will be decided later, at a June 13 hearing.
With things quieting down on the Dewey news front, let’s turn to analysis. Here are some insights into what brought Dewey down and what other firms can learn from its fall, from a former managing partner who now works as a consultant to the legal industry….
So, Dewey & LeBoeuf filed for bankruptcy, as I’m sure you’ve heard. Here at Above the Law, we’ve been embroiled in nitty-gritty of the breakup of this once-proud firm. But a tipster suggested that we take an interesting step back. After checking out the comments to a Dewey story on Reuters, this reader observed: “It’s just funny (and alarming) to see how much the masses hate lawyers and cherish seeing them suffer. Makes ATL seem like a safe zone.”
The reaction from the general — and generally uninformed — public has been a crazy aspect to this Dewey story. The process of Dewey falling apart has sent some people into a frothing “eat the rich” lather. As if one law firm in Manhattan has anything to do with why an autoworker in Cleveland can’t get a job.
Yesterday afternoon, Dewey’s lawyers appeared in U.S. Bankruptcy Court for the Southern District of New York. The firm’s lead lawyer, Albert Togut, introduced himself as follows: “I can finally confirm the worst-kept secret of the year. I am counsel for Dewey & LeBoeuf.” He’s going to be a very busy man over the weeks and months ahead.
Let’s find out what happened at the hearing, and also take a closer look at one of Dewey’s most intriguing unsecured creditors: a (rather attractive) litigatrix, a former Dewey associate now at another firm, who is owed more than $400,000 in “severance” by D&L….
* Dewey have any cash to pay the people helping to wind down our firm’s business? Nope! Even though JPMorgan backed D&L’s $8.6M motion to fund the firm’s ongoing operations, Judge Glenn insisted that the bank “[r]oll [its] truck up and start collecting accounts receivable.” [Am Law Daily (reg. req.)]
* “The jury has sent a note that they’ve reached… [dramatic pause] … a good stopping point.” Judicial humor lightened the mood after the seventh day of deliberations without a verdict in the John Edwards trial. [ABC News]
* Dharun Ravi finally issued an apology for his “stupid and childish” behavior, and he’ll be heading off to serve his 30-day jail sentence on Thursday. And you know, that jail sentence is joke enough for this blurb. [CNN]
* “Dumb Blonde” isn’t a name that Elizabeth Warren takes too kindly to being called. She much prefers the name that her Native American ancestors bestowed upon her: “Running Joke.” [San Francisco Chronicle]
* Four of the alleged victims in the Jerry Sandusky case have asked the court to protect their identities. It’s kind of like the Michael Jackson case, but everyone cares more because this one involves football. [Bloomberg]
* Hundreds of lawyers, notaries, and other legal professionals took to the streets in Montreal earlier this week to publicly protest Bill 78, a law that limits public protests. That’s so meta, eh Canadians? [Montreal Gazette]
This shouldn’t come as a surprise — we predicted it earlier this month — but the dying law firm of Dewey & LeBoeuf has filed for bankruptcy. We hope that you had a nice holiday weekend, because Dewey’s bankruptcy lawyers surely didn’t.
Under which chapter of the Bankruptcy Code is Dewey filing? Who is serving as bankruptcy counsel to the firm? What does Dewey’s balance sheet look like?
As we roll into the Memorial Day weekend, things are fairly quiet on the Dewey front. There’s not much news to report.
As we previously mentioned, some former partners are hiring counsel to defend them against possible clawback claims. And the ranks of ex-partners continue to grow: some nine Dewey partners, led by New York-based transactional attorney Elizabeth Powers, have moved over to Duane Morris, along with three counsel and four associates (so 16 lawyers in all).
What else can we report about Dewey? Oh yes, the winner of our meme contest….
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….
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….
Jiminy jillickers! ATL editors are going all over the place over the next month or so. Or at least all over the Eastern Seaboard. If we aren’t heading to your neck of the woods on these trips, never fear, we may hit you up on the next time around. We’ve already hit up Houston, Chicago, Seattle, San Francisco, and Los Angeles in the past year.
Kinney Recruiting’sEvan Jowers is currently in Hong Kong for client meetings and still has a few slots available through October 22. Evan will also be in Hong Kong November 14 to December 15. Further, Robert Kinney has been in Frankfurt and Munich this week and is available for meetings with our Germany based readers.
One of our key law firm clients has referred us to one of their important clients in the US, Europe and China – a leading global technology supplier for the auto industry – in order to handle their search for a new Asia General Counsel and Asia Chief Compliance Officer.
Kinney is exclusively handling this in-house search.
This position will have a lot of responsibility and include supervision of eight attorneys underneath them in the Asia in-house team. The new hire will report directly to the global general counsel and global chief compliance officer, who is based in the US. The new hire’s ability to make judgement calls is going to be as important as their technical skill set background.
The position is based in Shanghai and will deal with the company’s operations all over Asia and also in India, including frequent acquisitions in the region.
It is expected that the new hire will come from a top US firm’s Shanghai, Beijing or Hong Kong offices, currently in a top flight corporate practice at the senior associate, counsel or partner level. Of course, the candidate can be currently in a relevant in-house role.
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