Asbestos Law Firm Seeks Chapter 11 Shield from $4.2M, or Maybe $35M, Claim of Partner's Widow
Faced with a $4.2 million claim by a deceased name partner’s widow, a Florida-based asbestos law firm has filed for Chapter 11 bankruptcy seeking respite.
Kelley & Ferraro filed in Miami this week, as Lynn Kelley was pursuing a Cuyahoga County Court of Common Pleas case against the firm in Ohio concerning the amount she is allegedly owed by the firm after her husband’s death five years ago, reports Crain’s Cleveland Business.
Although James Ferraro prevailed at trial on all counts and the firm prevailed on all counts but one, Kelley won a $4.2 million judgment on that one count.
A state appeals court has since ordered the firm to dissolve and ordered a new trial on damages, the article explains. Kelley’s lawyer contends she is actually entitled to $35 million, according to dissolution provisions of the law firm’s partnership agreement.
White & Case, which is representing the law firm, didn’t return messages from Crain’s requesting comment.
Earlier coverage:
ABAJournal.com: “Death of King of Torts Threatens Ohio Law Firm’s Lush Life”
ABAJournal.com: “Lucrative Law Firm Must Dissolve, Court Rules, Because Partnership Agreement Wasn’t Updated”
