Come 2019, Any Debt Ex-Dewey Chair Owes Firm Vanishes

, The Am Law Daily

   |1 Comments

Roundly cast as the chief culprit in Dewey & LeBoeuf's collapse, Steven Davis agreed last week to pay the bankrupt firm's estate $511,145 as part of a broader settlement that protects him against potential mismanagement claims. Thanks to a key clause contained in that settlement, though, it's possible Davis could end up not paying the estate a penny.

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What's being said

  • Anonymous

    This settlement might or might not be beneficial to the estate's creditors, but it is outrageous in its utter failure to penalize Mr. Davis and his fellows for their misdeeds.

    Long ago I was an attorney at LeBoeuf. At the time, it was a fine firm, if not an especially sexy place to practice law. In my opinion, not only was the merger a mistake from its inception, but Davis and Steve DiCarmine (a non-lawyer earning $2 million a year) went on a spending spree that drove the merged firm into the ground and cost many fine and not-so-fine lawyers and staff people long-held jobs, anticipated retirement benefits and/or hundreds of thousands of dollars that, presumably, they had not set aside just in case of a claw-back settlement.

    The idea that Messrs. Davis and DiCarmine are going to go unpunished is infuriating and the notion that Davis gets off because he is out of money is laughable. No punishment = no retributive benefit. As for deterence, the only message is that acting with impunity for as long as you can is in your best interest, no matter what the cost to others.

    The Court should not approve this settlement.

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