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Dewey files for Chapter 11 - biggest US law firm collapses
Telegraph ^

Posted on 05/29/2012 4:38:59 AM PDT by sunmars

The crippled law firm Dewey & Leboeuf filed for chapter 11 bankruptcy protection on Monday night and will seek approval to liquidate its business after failing to find a merger partner, marking the biggest collapse of a law firm in US history.

"During the first quarter of 2012, the firm was confronted with liquidity constraints that led to the precipitous resignation of over 160 of the firm's 300 partners by May 11," the New-York based firm said.

Dewey listed liabilities in the range of $100m to $500m, according to the filing. It had already terminated 433 of its 533 New York employees earlier this month, according to the state's labor department.

The firm's collapse is expected to be the subject of years of court proceedings, and a number of former partners have already retained lawyers to represent them.

Monday's filing follows months of turbulence, as wave after wave of partner defections shattered the high-profile firm from within. In April, the Manhattan District Attorney's office launched a criminal probe of former firm chairman Steven Davis. He has denied any wrongdoing.

The result of a 2007 merger between Dewey Ballantine and LeBoeuf, Lamb, Green & MacRae, Dewey & LeBoeuf had about 1,450 attorneys at its peak, according to The National Law Journal.

But the firm was eventually undone by a combination of the economic downturn, excessive compensation and governance problems, according to former partners and others in the industry. In particular, Dewey's management promised millions in packages to about 100 partners, according to the court filing, leaving it strapped for cash when revenues fell during the recession.

(Excerpt) Read more at telegraph.co.uk ...


TOPICS: Business/Economy; Front Page News
KEYWORDS: 2012; bankruptcy; bhoeconomy; dewey; deweyleboeuf; economy; lawyers; layoffs; leboeuf
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Even the lawyers are going bust. Had not seen this reported anywhere. Did any of you?
1 posted on 05/29/2012 4:39:03 AM PDT by sunmars
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To: sunmars

Yes, the laws of economics apply to you, too.


2 posted on 05/29/2012 4:43:41 AM PDT by Izzy Dunne (Hello, I'm a TAGLINE virus. Please help me spread by copying me into YOUR tag line.)
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To: sunmars
CNBC has mentioned it several times, but not an in depth segment.
3 posted on 05/29/2012 4:44:04 AM PDT by Truth29
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To: sunmars

Someone better get in there and put their arms around the client escrow and trust accounts...or what is left of them.

I can see those clowns scurrying about now like roaches leaving a room when the lights go on.

Our educational system mints attorneys, other countries mint engineers. The term “run it by legal” has become the new go code in business now.


4 posted on 05/29/2012 4:46:11 AM PDT by Mouton (Voting is an opiate of the electorate. Nothing changes no matter who wins..)
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To: sunmars
Soon to emerge from re-organization as -->"Dewey, Cheatem & Howe"
5 posted on 05/29/2012 4:46:57 AM PDT by Tainan (Cogito, ergo conservatus sum)
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To: Truth29

apparently the knock on effect is huge.

http://www.insurancejournal.com/news/national/2012/05/29/249057.htm

This is gonna be a mess for years to come.


6 posted on 05/29/2012 4:47:25 AM PDT by sunmars
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To: sunmars

Dewey, Cheatham, and Howe?


7 posted on 05/29/2012 4:47:25 AM PDT by Yo-Yo
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To: sunmars

Silky Pony may soon be free to work cheap. Couldn’t they have waited one more week at least before going bust?


8 posted on 05/29/2012 4:48:40 AM PDT by tflabo (Truth or tyranny)
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To: sunmars
So we even have a terrorism knock on effect. The defendants can probably use this for much more than a 60 day delay. Delay is often an effective weapon as witness memories fade and key people die.
9 posted on 05/29/2012 4:57:16 AM PDT by Truth29
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To: Mouton

-—The term “run it by legal” has become the new go code in business now.——

Just don’t put it in an e-mail. ;-)

Do law firms even have email?


10 posted on 05/29/2012 4:57:42 AM PDT by St_Thomas_Aquinas (Viva Christo Rey!)
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To: sunmars

“...precipitous resignation of over 160 of the firm’s 300 partners...”

Gives me the image of slime oozing out.


11 posted on 05/29/2012 4:58:08 AM PDT by USMCPOP (Father of LCpl. Karl Linn, KIA 1/26/2005 Al Haqlaniyah, Iraq)
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To: sunmars

That’s going to be the most pedantic bankruptcy ever.


12 posted on 05/29/2012 4:58:48 AM PDT by Psycho_Bunny (Burning the Quran is a waste of perfectly good fire.)
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To: Psycho_Bunny

can you imagine the crap that is gonna come out about this place. Holding it together, things stay but once it falls apart, the amount of dodgy dealings are going to appear and questions asked.


13 posted on 05/29/2012 5:00:58 AM PDT by sunmars
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To: sunmars
If only those slimey lawyers who advertise on TV “were you injured by Wrigley chewing gum?” would go broke.Filthy bunch of John Edwardses.
14 posted on 05/29/2012 5:04:31 AM PDT by Gay State Conservative (Julia: another casualty of the "War on Poverty")
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To: sunmars

Wonder how many Millions they gave to Hope and Change in 2008. They got change thats for sure.


15 posted on 05/29/2012 5:06:46 AM PDT by scooby321 (h tones)
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To: sunmars
But the firm was eventually undone by a combination of the economic downturn, excessive compensation and governance problems, according to former partners and others in the industry. In particular, Dewey's management promised millions in packages to about 100 partners, according to the court filing, leaving it strapped for cash

Sounds like the Government and its Union friends.

16 posted on 05/29/2012 5:07:15 AM PDT by liberalh8ter (If Barack has a memory like a steel trap, why can't he remember what the Constitution says?)
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To: sunmars
In particular, Dewey's management promised millions in packages to about 100 partners, according to the court filing, leaving it strapped for cash when revenues fell during the recession.

Simply the 1% version of the union pension & benefits overloading.

17 posted on 05/29/2012 5:10:46 AM PDT by NonValueAdded (Elizabeth Warren, 1st Cherokee on the Mayflower?)
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To: NonValueAdded

Watch the lawsuits and DA investigations coming thick and fast soon.

Apparently the Manhattan DA has already begun.


18 posted on 05/29/2012 5:17:27 AM PDT by sunmars
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To: sunmars

Its gonna be like the law firm version of Lehman.

http://dealbook.nytimes.com/2012/05/13/assigning-blame-in-deweys-collapse/

With the finger-pointing well under way at Dewey & LeBoeuf, the once-proud law firm on the brink of dissolution, its partners agree the former chairman, Steven H. Davis, shoulders a large chunk of the blame for its stunning fall.

Yet amid the recriminations, two sharply divergent views of Mr. Davis have emerged.

Some Dewey partners suspect him of being a crook. Last month, several of them presented the Manhattan district attorney’s office with evidence of possible financial improprieties by Mr. Davis. The office has opened a criminal inquiry.


19 posted on 05/29/2012 5:19:07 AM PDT by sunmars
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To: Tainan

Only took five posts...


20 posted on 05/29/2012 5:20:54 AM PDT by pieceofthepuzzle
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To: Tainan

Or Kennedy’s old firm, “Winem, Dinem, Dinkum and Dunkem”


21 posted on 05/29/2012 5:23:17 AM PDT by LachlanMinnesota
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To: Mouton
We don't value real things in this country. That is why we have so few engineers and so many lawyers.

In classical terms, we are a feminine nation. We value form and feeling over substance.

That doesn't bode well for us.

22 posted on 05/29/2012 5:24:43 AM PDT by redgolum ("God is dead" -- Nietzsche. "Nietzsche is dead" -- God.)
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To: Tainan
Dang... I knew someone would beat me to it.

Could also emerge as the law firm of Ben Dover and C. Howard Fields

23 posted on 05/29/2012 5:30:03 AM PDT by Nervous Tick (Trust in God, but row away from the rocks!)
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To: sunmars
Away from the office, Mr. Davis went through a profound change a decade ago. In 2001, after 24 years of marriage, Mr. Davis separated from his wife and came out as gay. He has been in a long-term relationship with another man for the last 10 years.

Egad.

24 posted on 05/29/2012 5:32:42 AM PDT by Timber Rattler (Just say NO! to RINOS and the GOP-E)
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To: Yo-Yo; Tainan
"Dewey, Cheatham, and Howe?"
think about it, say it slowly...
common lawyer parlance/joking.
(JMHO :) $HRILLary Klintoon "Rose Law Firm" fame...
White Water Land Development...

25 posted on 05/29/2012 5:33:26 AM PDT by skinkinthegrass (WA. DC E$tabli$hment; DNC/RNC/Unionists...Brazilian saying: "$@me Old $hit; different flie$". :^)
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To: sunmars
The crippled law firm Dewey & Leboeuf

Someone crippled them? Why, they oughtta sue the bastid!

John Edwards, call your office (when you get out of prison)!

26 posted on 05/29/2012 5:36:51 AM PDT by Nervous Tick (Trust in God, but row away from the rocks!)
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To: sunmars

One law firm down, 10000000 to go!


27 posted on 05/29/2012 5:50:52 AM PDT by VanDeKoik (If case you are wondering, I'm STILL supporting Newt.)
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To: sunmars

Instead of declaring Chapter 11 why didn’t they hold out for a “to big to fail” g’mint bailout.
I thought it was the new socialist American way?


28 posted on 05/29/2012 6:01:30 AM PDT by Leep (Enemy of the Statist)
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To: Yo-Yo

sheltered childhood? never watched the Three Stooges? lol. free
gards,


29 posted on 05/29/2012 6:16:21 AM PDT by printhead (Standard & Poor - Poor is the new standard.)
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To: sunmars

At least there is some good news in this downturn.

Pray for America


30 posted on 05/29/2012 6:18:31 AM PDT by bray (Power to We the People)
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To: sunmars
Some Dewey partners suspect him of being a crook.

Well sure - he was a lawyer, wasn't he?

31 posted on 05/29/2012 6:18:44 AM PDT by bkopto (Obama and Biden merely symptoms of a more profound, systemic disease in American body politic.)
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To: sunmars

The Great One had a chance to step in and “save” the company. Oh, wait, there are no union members here. Never mind.


32 posted on 05/29/2012 6:18:44 AM PDT by NU Huskie In ME
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To: Yo-Yo; sunmars

Dewey, Cheatham, and Howe?

Three Stooges reference nes pas?


33 posted on 05/29/2012 6:19:46 AM PDT by jimmyo57
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To: sunmars

A good start.


34 posted on 05/29/2012 6:19:49 AM PDT by dfwgator
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To: redgolum

Yup.
And so the blood-sucking (B-S)heads of a firm of B-S lawyers has to hire outside B-S lawyers to defend themselves from hordes of government B-S lawyers. Guess who’s still billing?
Right! Other B-S lawyers! Leaches feeding upon leaches.

The whole law professions has degenerated into such a self-serving pool of slime, I rather relish hearing that these unproductive parasites are forced to scramble for cover.
Paying wordsmiths with no morals to extract money from those unable to protect themselves is just plain wrong. Is it a coincidence most professional politicians are also lawyers? I think not.


35 posted on 05/29/2012 6:35:32 AM PDT by bossmechanic (If all else fails, hit it with a hammer)
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To: redgolum
"That doesn't bode well for us. "

Bode well?

Hang, we're way past it now.

Read After America: Get Ready for Armageddon by Mark Steyn

36 posted on 05/29/2012 6:43:33 AM PDT by BwanaNdege (Man has often lost his way, but modern man has lost his address - Gilbert K. Chesterton)
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To: sunmars
.. a number of former partners have already retained lawyers ..

Talk about yer CF of epic proportions !


< /tears >

< lol >

37 posted on 05/29/2012 6:46:45 AM PDT by tomkat (:^)
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To: sunmars
.. a number of former partners have already retained lawyers ..

Talk about yer CF of epic proportions !


< /tears >

< lol >

38 posted on 05/29/2012 6:47:25 AM PDT by tomkat (:^)
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To: self
:-[ damn .. i SURELY hope new servers help with this latency BS .. 8 MB pipe and FR STILL loads like molasses ]
39 posted on 05/29/2012 6:52:04 AM PDT by tomkat (:^)
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To: sunmars

40 posted on 05/29/2012 7:01:41 AM PDT by Gritty (Unable to protect children from our selfish self-absorption, we protect them from falls-VanDerLeun)
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To: tomkat

Apparently the partners got to the critical mass point where they couldn’t force their junior associates to work more than 24 hours a day to support the partner’s paycheck. Boo Hoo. Tango Sierra.

I’ve been a junior associate. It sucks.


41 posted on 05/29/2012 7:16:52 AM PDT by jagusafr ("Write in Palin and prepare for war...")
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To: sunmars

400 lawyers out of work in New York City?
The biggest US law firm collapsed?

The sun is shining.....I’ve got a good cup of coffee.....good news about lawyers.....yep, it’s a good day....


42 posted on 05/29/2012 8:00:24 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: redgolum
We don't value real things in this country. That is why we have so few engineers and so many lawyers.

I see what you're saying; however, I'm not sure that having lawyers is [entirely] a bad thing. Consider John Adams, he was a lawyer with apparently a very acute sense of justice, which led him to become so involved with Independence. (Indeed, he was the guy who defended the British soldiers involved in the "Boston Massacre" on the grounds that they were defending themselves from an incited mob.)

In classical terms, we are a feminine nation. We value form and feeling over substance.

That is more true, I think, than most realize. (It could be even more true than you know.)
I've found myself investigating how to challenge state statutes that are [plainly] contrary to the State's Constitution and apparently the only way to go about addressing the matter via the Judicial branch is to get myself in violation of the statute in order to gain "standing"... in other words, there is no way at all to challenge it from a position of power, as you must implicitly accept the statute's authority in order to assert (on the legal forum) that it is an illegitimate authority.

In other words, the system is so "feminine" that it utterly rejects the "masculine" value/property/strength of logic.
Like you said, "form & feeling" over substance.

That doesn't bode well for us.

No, it does not. Especially if society keeps the valuation of masculine traits as worthless.
Just yesterday there was an article about Veterans which essentially tossed out the tag 'Hero' because "it encourages war."

In short, I'm reminded of TN's State Constitution and how at-odds it is with the general mode-of-thought of the general population:

§ 2. Doctrine of non-resistance

That government being instituted for the common benefit, the doctrine of non-resistance against arbitrary power and oppression is absurd, slavish, and destructive of the good and happiness of mankind.

43 posted on 05/29/2012 8:00:35 AM PDT by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: Tainan
Soon to emerge from re-organization as -->"Dewey, Cheatem & Howe."

Should be: Soon to emerge from re-organization as -->"Do-em, Screw-em Cheatham & Howe."

Their new corporate motto: We plow deep (into your pocket's / bank accounts etc.) while you sleep.

44 posted on 05/29/2012 8:30:32 AM PDT by Stanwood_Dave ("Testilying." Cop's don't lie, they just Testily{ing} as taught in their respected Police Academy.)
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To: Nervous Tick

And their press spokesman is A. Greystone Waller.


45 posted on 05/29/2012 8:38:19 AM PDT by Erasmus (BHO: New supreme leader of the homey rollin' empire.)
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To: printhead; Yo-Yo

Maybe Yo-Yo grew up in Niagara Falls?


46 posted on 05/29/2012 8:50:17 AM PDT by eCSMaster (Conservative patriots, Rise up!)
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To: Truth29

—CNBC has mentioned it several times, but not an in depth segment.—

NPR did an in-depth story a couple of weeks ago. I just assumed Chapter 11 was just around the corner.

Since law firms are basically a litigious civilization’s leeches, they are never “too big to fail”.


47 posted on 05/29/2012 8:53:56 AM PDT by cuban leaf (Were doomed! Details at eleven.)
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To: sunmars
Yep.


48 posted on 05/29/2012 8:57:04 AM PDT by cuban leaf (Were doomed! Details at eleven.)
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To: skinkinthegrass; printhead; jimmyo57; eCSMaster; Tainan
Thanks for the help, but I got the reference. I posted my "Dewey, Cheatham, and Howe" at the same time Tainan was posting his version, so it looked like I didn't understand.

In addition to the classic Three Stooges, Tom and Ray Magliozzi (click and clack the tappet bros.,) have Dewey, Cheatham, and Howe in the closing credits of their Car Talk radio program each week.

49 posted on 05/29/2012 10:09:07 AM PDT by Yo-Yo
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To: jagusafr
.. they couldn’t force their junior associates to work more than 24 hours a day ..

Betcha it wasn't for lack of tryin' !

50 posted on 05/29/2012 10:35:44 AM PDT by tomkat (:^)
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