- Former Dewey chairman may not have to pay entire $511K settlement; it depends on his income
Former Dewey chairman may not have to pay entire $511K settlement; it depends on his income
Posted May 1, 2013 7:43 AM CST
By Debra Cassens Weiss
Former Dewey & LeBoeuf chairman Steven Davis is getting some leeway in a proposed $511,000 settlement related to the law firm’s collapse.
The proposed agreement to settle a mismanagement claim gives Davis six years to pay the money, and it’s contingent on his earnings, the Am Law Daily reports. Davis will be required to pay 8 percent of his annual earnings over a six-year period toward the $511,000 and interest on the unpaid balance. After the last March 2019 payment, any unpaid remainder will be forgiven.
A separate agreement required other former partners to pay the estate by early April in exchange for a release from liability for Dewey debts. Their payments ranged from $5,000 to $3.37 million, depending on how much money each received from the firm in 2011 and 2012.
The Am Law Daily summarizes the reaction to the terms of Davis’ settlement. “That Davis—who has been unemployed since being forced out of Dewey in the firm's waning days—must earn at least $6 million over the next six years in order to pay off the settlement in full, and can walk away debt-free even if he doesn't, is stirring outrage among some of his former colleagues,” the story says.