Shumsky said in an email that the trustee’s theory relies on old cases decided under old statutes—none of which deal with hourly fees.
“The cold, dead hand of a defunct law firm shouldn’t have a grip on work that it can’t perform,” Shumsky wrote. “We look forward to making these arguments to the California Supreme Court.”
Christopher Sullivan at Diamond McCarthy, who argued for the Heller trustee, said the decision was “an excellent outcome for the Heller estate.”
“The Ninth Circuit recognizes the force of the prior California state court holdings, which should be respected,” Sullivan wrote in an email. “We are confident that the California Supreme Court will affirm that under California law a dissolving law firm does have a property interest in the profits from legal matters in progress at the time of dissolution.”
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