Business of Law
Former Dewey partner settles $200K capital loan dispute with Citibank
By Martha Neil
May 10, 2013, 10:29 am CST
A federal judge in New York issued a brief order Thursday dismissing without explanation all claims and counterclaims in a lawsuit concerning a capital loan for a little over $200,000 made by Citibank to a former partner of Dewey & LeBoeuf, reports Reuters.
After Citibank sued ex-partner Steven Otillar for allegedly defaulting on the loan, he counterclaimed last year contending that Citibank had "fraudulently induced" him to sign up for a loan by failing to disclose the law firm's precarious financial situation. Citibank responded by saying it had no duty to warn a partner about the financial condition of his own law firm.
A spokeswoman told Reuters that the bank is "pleased" with the resolution of the case and attorney Michael Luskin, who represents the bank, told the news agency: "Case settled, action dismissed, Citi delighted. No further comment."
Otillar did not respond to a request for comment from Reuters and his lawyer, Helen Davis Chaitman, declined to comment, saying that the settlement is confidential.
ABAJournal.com: "Ex-Dewey partner’s fraud claim re Citibank capital loan gets green light from federal judge"
ABAJournal.com: "Ex-Partners’ Suit Says Citibank Urged Personal Loans as Howrey Overspent Line by ‘Incredible’ $23M"
ABAJournal.com: "Judge axes ex-partners’ suit saying Citibank misled them about Howrey finances when making loans"