Four firms’ efforts to overturn a contentious and problematic bankruptcy doctrine hit a roadblock Monday.
U.S. Bankruptcy Judge Dennis Montali sided with the Heller Ehrman estate on four key liability issues in a ruling Monday, advancing its efforts to recover profits from four of the firms Jones Day; Davis Wright Tremaine; Orrick, Herrington & Sutcliffe; and Foley & Lardner that scooped up Heller partners as the firm cratered in 2008. Heller’s partners had agreed to waive their right to pursue so-called Jewel claims in order to facilitate orderly moves to new law firms. But Montali said claims allowed under Jewel v. Boxer a decades-old First District case dealing with the break-up of a four-lawyer firm can’t be waived in such circumstances. He agreed with the Heller estate that the waivers transferred property from Heller to the defendants without returning anything of value to the defunct firm at a time when it was insolvent.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
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]