Who has the right to unfinished business revenue from a failed law firm: Lawyers or creditors?

A New York appeals court will hear arguments in cases involving Coudert Brothers LLP and Thelen LLP

Although law firm Dewey & LeBoeuf failed in 2012 (see IC’s full timeline for more information), trustees, creditors and all sorts of sources are still trying to divide up the failed firm’s pie. On docket this week in a New York court is a question for an important piece of that pie: Do creditors or attorneys have rights to continued attorney’s fees from work that originated at a failed firm?

On June 4, arguments will begin in the New York Court of Appeals over cases stemming from the failures of Coudert Brothers LLP and Thelen LLP. Those two firms closed in 2005 and 2008, respectively, but the creditors in charge of the bankruptcy estate for each firm believe they have a stake in the continued work that the firms’ former lawyers took to new firms.

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Zach Warren

Zach Warren is Assistant Editor of InsideCounsel magazine, where he oversees online content submissions and administers InsideCounsel's enewsletters. Zach specializes in new media and multimedia...

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