Thank you for sharing!

Your article was successfully shared with the contacts you provided.
Ten former partners at Brobeck, Phleger & Harrison have asked the San Francisco bankruptcy court to throw out suits filed against them by the firm’s bankruptcy trustee. In January, trustee Ronald Greenspan sued all former Brobeck partners for distributions they received in 2001 and 2002, during which time he alleges the firm was insolvent. The 10 partners challenging him were sued for $130,000 to $1.2 million. The partners claim that the trustee has misinterpreted California law governing limited liability partnerships to say they are not entitled to any compensation for their work. “Under the trustee’s interpretation of the statutes, law partners who stay with the partnership and continue working to generate receivables while the firm experiences financial difficulty face the greatest liability,” Cecily Dumas, who is representing eight junior partners, wrote in a June 1 filing. “Law partners are incentivized by the trustee to disassociate from the partnership at the earliest sign of financial trouble, with the first leaving facing the least liability exposure,” continued Dumas, of Friedman Dumas & Springwater. Greenspan’s attorneys filed a June 8 motion opposing the partners’ request. A hearing on the motions will be held June 30. As of last month, 212 partners had settled for amounts less than Greenspan cited in his complaint.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]


ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.