Proposed $71M Dewey Clawback Deal Gives Nod to Jones Day Partners’ Fraud Claims
Posted Sep 17, 2012 6:05 PM CDT
By Martha Neil
In the latest development in a proposed $71 million plan to claw back some profits from former partners of the failed Dewey & LeBoeuf law firm, those in charge of the deal have agreed to give four high-profile bankruptcy lawyers leeway to pursue fraud claims against their former firm.
The four ex-partners—Bruce Bennett, James O. Johnston, Sidney P. Levinson and Joshua M. Mester—are known for their work on the $2 billion sale of the L.A. Dodgers and presently practice at Jones Day. The Wall Street Journal Law Blog says the proposed Partner Contribution Plan that will be the topic of a court hearing Thursday will hold back on pursuing certain relief against these partners while they seek damages for “fraud, misrepresentation, breach of fiduciary duty and other claims” against Dewey, members of the firm's executive committee and others.
The PCP, in return for obtaining money from former partners who took Dewey matters to other law firms as it imploded earlier this year, protects them against further liability in connection with Dewey's Chapter 11 bankruptcy.
ABAJournal.com: "Dewey Offers New Clawback Deal; Top Earners and Firm Leaders Would Pay More"
ABAJournal.com: "Citibank Says It Had No Duty to Warn Ex-Partner About Dewey Finances"