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 ...
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.
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....
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.
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.
And their press spokesman is A. Greystone Waller.
Maybe Yo-Yo grew up in Niagara Falls?
—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”.
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.
Betcha it wasn't for lack of tryin' !
I once heard one drunk attorney bragging to another in an Airport Hotel how he was billing 20 hrs a day, and still had time for Golf before heading home.
The chairman that everyone is so mad at is a guy who “came out of the closet” a few years back after 24 years of marriage according to what I read.
Now I know that thrill Chrissy Mathews felt. This is as good as or better than seeing a newspaper layoff newsroom employees. Too bad many of the bustards already got rich litigating anything and everything. I suspect the John Edwards mold is the norm for lawyers.
Good example of why “the recession has ended” is totally false. The problems are still there, and the government’s attempts to mask them are going to fail more and more.
Good example of why “the recession has ended” is totally false. The problems are still there, and the government’s attempts to mask them are going to fail more and more.
It can be done with ease. Let’s say I go to court for motions, and I spend 2 hours there. If I had 5 files with me, then I just billed 10 hours, not 2, all before lunch! It might not be honest or ethical, but it can be done, and is done. Often. It’s a disgusting business.
SCORE!! you got in first!
Congrats!
Nyuk nyuk nyuk.
Lawyers suing lawyers. You're correct: this will be an ultimate dot your "i's" and cross your "t's'" battle.
All parties involved will, in all likelihood, die before this ever gets settled.
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