Togut Segal & Segal

Today at 5 p.m. is the deadline for former partners of the bankrupt Dewey & LeBoeuf law firm to sign up for the “Partner Contribution Plan.” Under the terms of the Plan, which in its latest iteration seeks $90.4 million in “clawbacks” from ex-partners, participating partners would contribute specified amounts to the Dewey bankruptcy estate in exchange for releases from future liability (to the Dewey estate, to other participating partners, and to Dewey lenders, thanks to recent revisions to the PCP).

When talk of the Plan first surfaced, I opined that “[s]uch a deal sounds reasonable in principle.” I later observed that even if the PCP might not be perfect, “[i]f you’re a productive partner, happily ensconced at a new and stable firm, and just want to forget the D&L debacle and return to serving your clients, this deal may Dewey the trick.”

But now, after numerous revisions to the Plan, seemingly endless extensions of the deadline to join, and a still-insufficient amount of participation, I’m beginning to think that maybe it just won’t fly — and Dewey should just be allowed to die, i.e., slip into a straight-up liquidation. Perhaps Dewey’s bankruptcy advisers should stop trying to flog a product that nobody seems interested in buying.

UPDATE (4:35 PM): It looks like the Dewey estate’s perseverance has paid off. The $50 million participation threshold has been reached.

Here’s one good thing about the Partner Contribution Plan: thanks to the PCP, we now have detailed information about how much each of Dewey’s partners received from the firm in 2011 and 2012. And yes, we’re willing to share the data for the top earners with you, in spreadsheet form.

Some people are big believers in the virtues of black-box compensation. But here at Above the Law, we’re all about transparency….

double red triangle arrows Continue reading “Dewey Have Data on How Much Partners Got Paid? Yes — Thanks to the Partner Contribution Plan”

Earlier this week, we wrote about the lavish payments that Dewey & LeBoeuf made to its former executive director, Stephen DiCarmine, and its former chief financial officer, Joel Sanders, in the year leading up to the firm’s bankruptcy filing. Each man received almost $3 million in salary, bonuses, and expense reimbursement. (There’s additional detail and number crunching over at The Lawyer.)

Today we bring you additional interesting information from — and speculation about — the Dewey bankruptcy filings. For starters, who are the two Dewey partners who received more than $6 million each in the year leading up to the Chapter 11 petition?

double red triangle arrows Continue reading “Biglaw Blind Item: The $6 Million Men
(Plus additional tidbits about Dewey partner compensation.)

Yesterday brought some good news for Biglaw’s favorite debtor in possession, Dewey & LeBoeuf. The firm, currently in Chapter 11 bankruptcy, received an additional two weeks of bankruptcy funding.

That’s the nice news. Now, the nauseating: namely, how much Dewey’s executive director and chief financial officer were paid, as the firm swirled down the drain earlier this year….

double red triangle arrows Continue reading “Dewey Know How Much Firm Managers Received as LeBoeuf Was Being Cooked?”

The mid-year bonuses recently announced at Cahill Gordon and Quinn Emanuel did not come as a huge surprise. Both firms are thriving, and both firms have paid summer bonuses in the past.

But how would you react to news of bonuses at Dewey & LeBoeuf, the once-powerful law firm that declared bankruptcy over Memorial Day weekend? Such news would be more surprising, wouldn’t it?

Dewey pull your leg? No, we’re quite serious….

double red triangle arrows Continue reading “Bonuses Approved at Dewey & LeBoeuf, Despite Bankruptcy Trustee’s Beef With Them”

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….

double red triangle arrows Continue reading “What Dewey Do With Thousands of Boxes of Client Files?
(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….

double red triangle arrows Continue reading “Dewey Have a Deal With Former Partners of the Firm?”

* It’s not just media groups that are urging the Supreme Court to allow live coverage of the announcement of the ACA decision. Senators Patrick Leahy and Chuck Grassley of the Senate Judiciary Committee have joined the club. [Blog of Legal Times]

* Dewey know whether this failed firm’s former partners will be settling their claims any time soon? Team Togut hopes to reach a deal in the next six weeks, and claims that cooperation will absolve D&L’s deserters of all future liability. [Am Law Daily (sub. req.)]

* From Biglaw to the big house: former Sullivan & Cromwell partner John O’Brien, who is serving time for tax evasion charges, has been suspended from practicing law in New York. [Thomson Reuters News & Insight]

* A Stradling Yocca partner and his wife, a Boalt Hall graduate, stand accused of planting drugs on a school volunteer who supervised their son. Looks like the only thing they’re straddling now is jail time. [OC Register]

* Dharun Ravi was released early from jail yesterday after completing a little more than half of his 30-day sentence. Funny how bad behavior got him into the slammer, but good behavior got him out of it. [CNN]

* “Why would somebody so smart do something so stupid?” Kenneth Kratz, the sexting DA from Wisconsin, claims that the answer to that question is an addiction to sex and prescription drugs. [Herald Times Reporter]

* Jay-Z’s got 99 problems and this bitch is one. He’s been accused by Patrick White of plagiarizing parts of his own best-selling memoir, “Decoded,” and slapped with a copyright infringement suit. [New York Daily News]

It has been a few days since our last detailed story about the largest law firm bankruptcy in history. So let’s check in on the Chapter 11 proceedings of Dewey & LeBoeuf, currently pending in bankruptcy court for the Southern District of New York.

There have been a few recent developments. For example, as we mentioned in Morning Docket, Dewey is being counseled in bankruptcy by some pretty pricey advisers.

How expensive are we talking?

double red triangle arrows Continue reading “Dewey Have Some Pretty Expensive Bankruptcy Advisers? How Much Do They Charge?”

Brett McGurk

* Dewey know how many professional services firms it takes to wind down a Biglaw firm? According to new D&L bankruptcy filings, there are at least eight of them — including Togut Segal & Segal, a leading law firm that reportedly charges $935 an hour. [WSJ Law Blog]

* Despite Barack Obama’s pledge of support, Brett McGurk has withdrawn his name from the White House pool of ambassadorial candidates amid much salacious controversy. Apparently this man knows a lost cause when he sees one. [Washington Post]

* So many DOMA lawsuits, so little time: what’s happening in the six major cases on this statute? The majority are in various stages of appeal, and the world at large is currently awaiting a cert filing to get a final take from the Supreme Court. [Poliglot / Metro Weekly]

* LSAC will now vet incoming law students’ GPAs and LSAT scores. The ABA won’t do it because they need the insurance policy of someone else to blame in case something happens to go wrong. [National Law Journal]

* Stephen McDaniel’s lawyers are expected to ask a judge to reconsider his $850K bond today. If he’s released, it seems like there’s a high probability that he’ll become an ATL commenter. [Macon Telegraph]

* Remember the legal fight over the Tyrannosaurus bataar? Well, now Preet Bharara, the U.S. Attorney for the S.D.N.Y., is on the case, and he wants it to be seized for return to Jurassic Park Mongolia. [New York Observer]

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….

double red triangle arrows Continue reading “Why Dewey Owe More Than $400K to a Former Associate?
(And a report on Dewey’s day in bankruptcy court.)”

Page 2 of 3123