The Biglaw firm Dechert recently filed a New York state lawsuit against a former senior project attorney, Kathleen Fay, over $132,000+ in compensation the firm says it mistakenly paid. Fay worked for Dechert in various capacities between 2018 and 2024. She was initially hired on a year-long contract that was later extended, but, based on client and business needs, transitioned to a temporary employee. That employment contract specified she would only be paid on an hourly basis for work specifically assigned.
But that led to a whoopsie, which, according to Dechert, led to the overpayment. Per the complaint, “Upon learning of the administrative error in mid-May 2024, Plaintiff demanded that Defendant repay the erroneous payments for unearned wages, but Defendant has refused to comply.”
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Fay hit back at the allegations against her, as reported by Law.com:
Fay, who works at Fordham University School of Law, hit back at the suit, saying in an email that “Dechert’s accusations are baseless and its actions are unethical.”
“I do not believe Dechert would have tried to recoup money had I not found a new job just when work started to pick up again at the firm,” she added, while highlighting Am Law 100 reporting that indicated the firm earned over $1.29 billion in revenue in 2024, with equity partners earning over $3.5 million per year.
“I worked for Mark Cheffo and Sheila Birnbaum’s product liability team for over a decade, and am now a law librarian earning less than a paralegal. It is unfortunate that Dechert has chosen to remove my vested funds from my 401K account and to bully me in public. However, the equities and the law favor me and I look forward to vindicating my rights and reputation in court.”
The complaint alleges conversion and unjust enrichment, and seeks the return of the overpayment along with fees and legal costs.
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Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter @Kathryn1 or Mastodon @[email protected].