Banking Law

UK court says ex-Dewey leader must repay $540K capital loan; he hopes US court will cancel it

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Noting that a former practice group leader at Dewey & LeBoeuf was “not a naive or vulnerable consumer,” a U.K. judge on Tuesday said that he is bound by the terms of his $540,000 capital loan and must repay Barclays.

Londell McMillan was “unwilling to accept what was plain on the face of the documents and seemed to me to have convinced himself of a version of events which was inconsistent with the contemporaneous record,” said Judge Andrew Popplewell in the High Court’s written opinion on what the Financial Times (sub. req.) calls a landmark case.

McMillan, who was chief of the entertainment and sports practice group at Dewey, had contended that the loan was for the now-bankrupt firm’s benefit, not his, and said it was negotiated between the firm and Barclays.

‘I look forward to defending myself in the U.S.,” McMillan said after the verdict, apparently referring to a federal lawsuit he filed in Manhattan in 2013 seeking recission of the Barclays capital loan.

Three other former Dewey partners had also been litigating against Barclays, but settled with the bank prior to trial on undisclosed terms, reports The Lawyer (sub. req.). They are Elias Farrah, Lester Charles Landgraf and Lewis Rosenbloom.

A total of 220 Dewey partners owed $56 million to Barclays when the firm collapsed and filed for Chapter 11 bankruptcy in 2012, the Financial Times reports. At least 184 have since repaid and the bank promises to “continue to robustly pursue those partners whose loans remain outstanding.”

Bloomberg and The Lawyer (sub. req.) also have stories.

Related coverage: “Claimed bank loan for $540K Dewey capital payment a ‘fabrication,’ says ex-partner in suit”

Legal Futures: “Ex-Dewey & LeBoeuf partner wins first round in battle with Barclays over capital loan”

See also: “Ex-Dewey partner’s $500K loan shouldn’t be discharged because he lied about assets, bank says” “Former Dewey partner testifies she lost $621K in equity capital while two leaders earned millions”

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