A Partner's Cancer Battle Results in Suit over His Law Firm Shares and Insurance Proceeds
Updated: After class action lawyer Thomas Mellon Jr. was diagnosed with pancreatic cancer, he told staffers that the Doylestown, Pa., law firm he founded would cease to operate, according to allegations in a lawsuit.
But a different partner in Mellon, Webster & Shelly apparently believes the decision isn’t his to make. The suit filed by Carol Shelly says the law requires Mellon to transfer his shares in the three-partner law firm because he is disabled, according to Phillyburbs.com.
The complaint also alleges that Mellon changed a $1.5 million life insurance policy so that his estate, rather than the law firm, is the beneficiary, the story says. Shelly says the policy was purchased when the firm obtained a $5 million line of credit.
The third partner in the firm is Mellon’s wife, Sara Webster. The suit seeks the removal of Mellon and Webster as officers in the firm. “Mellon, Webster and Shelly are deadlocked in the direction and management of the business and affairs of the law firm,” the suit says.
A press release issued Friday in the name of the “Mellon Webster” law firm says Shelly’s suit “contains innumerable factual inaccuracies and is devoid of merit.” The release says Shelly is no longer associated with the firm and quotes Sara Webster, identified as president of Mellon Webster. “We will not publicly speculate on Carol’s motivation but we do wish to state the law firm’s exceptional work for its clients will continue, unaffected by this lawsuit and also unaffected by the transition of authority taking place within the law firm,” Webster says.
Updated at 2 p.m. on April 27 to include information from the law firm press release.
