Don’t Expect Paychecks on Monday, Receiver Warns Remaining Dreier Troops
Posted Dec 12, 2008 2:51 PM CDT
By Martha Neil
For those who may have wondered what it's like to practice law at a partnership that's under receivership, a notice to Dreier employees filed in federal court in Manhattan within the past day or two provides a detailed account.
Those who remove firm property without authorization do so at their peril. And, to remove personal property, Dreier attorneys and staff must fill out a form and have the property inspected first, explains the notice (PDF), a copy of which is provided by Wall Street Journal Law Blog.
More importantly, it appears that further paychecks may not be forthcoming: "We cannot provide you with any comfort relative to the continued payment of salary or benefits," writes receiver Mark Pomerantz, a partner with Paul Weiss Rifkind Wharton & Garrison, who filed the memo. "Indeed, it is very unlikely that the firm will be able to make its payroll commitment on Dec. 15, 2008."
Additionally, he explains, any payment from clients for work in progress may be subject to liens and should be sent to the receiver. Those in possession of Dreier records subject to a grand jury subpoena now have until Dec. 26, rather than today, to produce them, Pomerantz notes.
Because firm assets are depleted or frozen, Dreier won't be able to continue in business as before. However, "certain practice groups may be able to continue," he writes.
Earlier ABAJournal.com coverage: