Posted Mar 06, 2013 05:30 pm CST
Two former partners of Dewey & LeBoeuf, along with the law firm at which they now practice, Paul Hastings, have agreed to pay nearly $1.6 million to settle a claim over unfinished Dewey business they took with them to their new jobs.
A filing Monday in New York says Paul Hastings agreed to pay $575,000 to avoid clawback litigation in Dewey’s bankruptcy case concerning Michael Fitzgerald, a Latin America practice leader; two corporate partners, Arturo Carrillo and Taisa Markus; and partner Mary Jean Moltenbrey, who focuses on antitrust work, reports Reuters.
However, only two of the lawyers, Fitzgerald and Carillo, are required to pay an additional $1 million, total, in exchange for avoiding any liability for repaying future profits from their work to the bankruptcy estate in Dewey’s Chapter 11 case. The other two lawyers don’t have to pay now because they participated in a $71.5 million group settlement that was reached earlier.
Fitzgerald had argued that he was owed as much as $38 million in unpaid compensation and pension benefits from Dewey. However, the settlement eliminates that claim, according to the filing by Scott Ratner, a lawyer for Dewey.
“The Debtor believes this settlement may serve as a catalyst for the future resolution of unfinished business claims,” Ratner wrote.
A Paul Hastings spokesman says the law firm is pleased to have resolved the matter.