A settlement made between former Dewey & LeBoeuf partners and the defunct firm's estate has finally reached critical mass and has been approved by a judge in New York. This has cleared the path for an orderly wind-down of the firm, which should be concluded in the next couple of months.
450 of the firm's 670 partners have paid money into a fund which absolves them from any further responsibility towards the estate of the dead firm, according to Legal Week. Some very senior partners had to dig deep to find the $3 million required for their absolution, although most were at the lower end of the scale and had to pay just $25,000.
However three senior Dewey players were not allowed to take part. Ex-chairman Steven "Interesting" Davis together with the firm's former CEO and its former CFO (who's already got a job at another firm) will soon face the wrath of the firm's creditors, who claim they are owed $500 million in total. The settlement fund will make up a mere $71.5 million of that sum.
A number of bullish London partners have chosen not to take part. That seems a risky ploy, and Legal Week quotes one former partner who said "there were some...who didn't participate and are of the view that they are not liable for future litigation, which is not true". Another said "taking the decision to settle seemed like a no-brainer". Although no doubt a bit galling for those who had no role in the mismanagement of the firm.
The fast-moving winding-up of Dewey in the US is in stark contrast to the endless wrangling over the death of UK firm Halliwells.
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450 of the firm's 670 partners have paid money into a fund which absolves them from any further responsibility towards the estate of the dead firm, according to Legal Week. Some very senior partners had to dig deep to find the $3 million required for their absolution, although most were at the lower end of the scale and had to pay just $25,000.
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It's itchy bottom time for non-paying ex-Dewey partners |
However three senior Dewey players were not allowed to take part. Ex-chairman Steven "Interesting" Davis together with the firm's former CEO and its former CFO (who's already got a job at another firm) will soon face the wrath of the firm's creditors, who claim they are owed $500 million in total. The settlement fund will make up a mere $71.5 million of that sum.
A number of bullish London partners have chosen not to take part. That seems a risky ploy, and Legal Week quotes one former partner who said "there were some...who didn't participate and are of the view that they are not liable for future litigation, which is not true". Another said "taking the decision to settle seemed like a no-brainer". Although no doubt a bit galling for those who had no role in the mismanagement of the firm.
The fast-moving winding-up of Dewey in the US is in stark contrast to the endless wrangling over the death of UK firm Halliwells.