Mark C. Zauderer

As we noted in Morning Docket, many former partners of Dewey & LeBoeuf are less than pleased with the proposed settlement between the D&L bankruptcy estate and ex-partners of the firm. Preliminary reactions “rang[e] from skepticism to anger,” according to Am Law Daily.

In the words of Mark Zauderer, counsel to almost 60 former Dewey partners, “I’m not seeing overwhelming enthusiasm for the proposal.” A former D&L partner was even more blunt: “I think this is destined to fail. Let the trustee [of a Chapter 7 liquidation] go for it.”

But not everyone holds such negative views. One ex-partner — who claims that he’s being asked to pay more than he thought he owed, and that he’ll have to postpone his retirement by several years due to Dewey’s downfall — told Thomson Reuters that he will vote for the deal anyway. “My view is there’s nothing less desirable than having this drag out for years,” he said. “I’m willing to pay a lot of money to have this go away.”

Dewey have other issues besides how to deal with former partners? Most certainly. There are pressing problems regarding the disposition of client files, as well as issues regarding retirement benefits for former Dewey & LeBoeuf employees….

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(And bad news for D&L 401(k) participants.)

Debtor in possession -- of a sign? Dewey still seems to have signage outside 1301 Avenue of the Americas. (Photo taken on Tuesday by yours truly.)

Ever since the once high-flying Dewey & LeBeouf filed for bankruptcy in late May, observers have been wondering about what type of financial arrangement the firm might work out with its former partners. Last month, we discussed the outlines of a possible settlement between D&L and its ex-partners, in which former partners would pay a certain amount of money into the Dewey bankruptcy estate in exchange for being released from future claims by Dewey’s estate, the firm’s creditors, and fellow ex-partners.

Would such a plan fly? We noted that the broad outlines sounded reasonable enough, but that much would turn on the specific contours of the proposal — especially the amounts that the partners would be asked to pay, and the methodology for determining those sums.

In the wake of a meeting held yesterday afternoon here in New York at a hotel in midtown Manhattan, we now have some additional information on that front….

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The bankruptcy case of the dying Dewey & LeBoeuf rolls on. As we mentioned yesterday, other Biglaw firms are getting business out of its burial. For example, Brown Rudnick is representing the official committee of unsecured creditors, and Kasowitz Benson is representing the official committee of retired D&L partners. (This group is separate from the 60 or so ex-partners who have hired Mark Zauderer to fight potential clawback lawsuits and other claims that the Dewey estate might bring against former partners and their new firms.)

If asked to name people who might be worried about owing money to the Dewey estate, some observers might cite “the Steves”: former chairman Steven H. Davis, and former executive director Stephen DiCarmine. Some have accused the Steves of mismanaging D&L’s affairs (or worse), contributing to the collapse of a firm that was once in the top 30 U.S. law firms by total revenue.

But if you’re thinking that Steve DiCarmine wants to pay the Dewey estate some money and get on with his tanning life, think again. As it turns out, Steve DiCarmine is claiming that Dewey owes him money….

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(Plus pictures of his former office.)


As we reported late on Monday night, Dewey & LeBoeuf has filed for bankruptcy — the largest law firm bankruptcy in U.S. history, in fact. You can access a copy of Dewey’s voluntary petition to enter Chapter 11 over here (via Scribd).

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….

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(And a report on Dewey’s day in bankruptcy court.)”

* 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]