Dewey Docket: Free Legal Advice From Former Bankruptcy Head

[WSJ Law Blog]

No decision today, LBers, on the fate of a proposed $70 million “clawback” settlement with ex-partners of failed law firm Dewey & LeBoeuf LLP. The plan, if approved, would mark the first big recovery for creditors in the largest law firm failure in U.S. history. The clock is ticking. The firm’s bankruptcy advisers are pushing to get a deal approved by the court before the end of the month, when funding runs out for this stage of Chapter 11 proceedings.

Reuters

But a hearing on the matter Thursday did reveal some interesting nuggets surrounding the plan, which would grant participants immunity from future lawsuits in exchange for a portion of their 2011 and 2012 earnings. Among the tidbits: a testy July 12 email from the firm’s former bankruptcy chair, Martin Bienenstock, to the estate’s bankruptcy advisers. Mr. Bienenstock is widely credited with mapping out the firm’s basic liquidation strategy before he left in May to join Proskauer Rose LLP. . .

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