Bankrupt Airline Faults Dewey for $644,000 in Unnecessary Work

, The Am Law Daily

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Attorneys for American Airlines' parent company are trying to trim a $4.6 million bill, citing what they view as unnecessary diligence completed by a partner as he prepared to leave then-floundering Dewey, as well as charges for first-year associates that were prohibited by a contract.

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What's being said

  • Bankruptcy attys actually boast about their $1,000 per hour fees approved by a Judge whose job is to protect creditors from unfair distribution of remaining assets. Remember the auto industry filings? The lead attorney on the law firm chosen to handle the estate announced with obvious glee her $1,009 an hour fee agreement had been routinely approved. Even a h.s. dropout knows there's something wrong with that fee amount! It was a headline here in the NYLJ that was all but ignored by everyone.
    What good is a bankruptcy proceeding if only the lawyers, the trustees hand picked lawyers, AND NO ONE ELSE SEE A RED CENT. I represented a divorcee with assets in excess of $100,000, and after the "trustee" substituted his buddy's firm to settle a slam dunk case against petitioners ex spouse and a negligent bank, a settlement for easily half its true value because it was easier and quicker to do so, the estates new found assets were quickly ALL HANDED OVER TO HIS BUDDYS FIRM IN LEGAL FEES, None of which were earned, the Trustees own fees, and Lo and behold, three was not a single cent for a single creditor, much less the petitioner divorcee! Her listed debts were no more than $30-40k, the money sued for was the sale proceeds from her co-op that her ex embezzled an amount that could easily have reached $200K. But once her Chapter 7 petition was filed, the Trustee, and the rubber stamping Judge made her entire life savings GET EMBEZZLED A SECOND TIME! THE Defendant bank was thrilled to pay only half of what petitioners lawyers had forced the bank to acknowledge as their true responsibility, but which the Trustees EXPERT counsel cut in half to expedite payment. And then every single dime of that settlement went into the Trustees hand picked firm, in fees charged by them to reduce her settlement. Are referral fees to trustees REALLY prohibited? Are you sure? The Trustee still got HIS fees for the wonderful job he did. And the Report he filed with the court stated that "there just wasn't enoughbmoney left FOR ANYONE ELSE, NOT A DIVORCING CREDITOR OR THE DEBTOR. Now I ask you. In my case, whose records are all publicly available and every word verifiableon, file who are the REAL CRIMINALS? of course the ex husband who was NEVER prosecuted, but I believe the real criminals are obvious. This embezzlement was orchestrated at the first creditor meeting when petitioners PRO BONO attys, yes legit, talented pro bono attys were summarily replaced by the Trustees CRONYS. The rest, unbeknownst to me was a rerun of a dog and pony show that apparently has been playing longer than Jeopardy, but only the host and producers "win" the prizes. American Airlines should go through every single invoice, and insist on full accounting from all the lawyers who submitted bills, including their own. I guarantee the one partners bill in question IS PEANUTS compared to what they will uncover if they really look closely. I urge ALL CLIENTS to do the same with all itemized.bills. The biggest fraudsters get firm prizes, promotions and the adoration of their brethren. An outside counsel hired JUST TO REVIEW BILLS will repay his salary to you 1,000 times over. He's the only attorney in a bankruptcy case who actually DESERVES $1,000.00 an hour. The rest and their coconspirators deserve STRIPED PAJAMAS! (Btw, I can write many more of these sad but true stories. The problem is finding a publisher that will print them, and legislators who will try to fix them!) A. Rodrigues, Esq., adm 1981.

  • Bankruptcy attys actually boast about their $1,000 per hour fees approved by a Judge whose job is to protect creditors from unfair distribution of remaining assets. Remember the auto industry filings? The lead attorney on the law firm chosen to handle the estate announced with obvious glee her $1,009 an hour fee agreement had been routinely approved. Even a h.s. dropout knows there's something wrong with that fee amount! It was a headline here in the NYLJ that was all but ignored by everyone.
    What good is a bankruptcy proceeding if only the lawyers, the trustees hand picked lawyers, AND NO ONE ELSE SEE A RED CENT. I represented a divorcee with assets in excess of $100,000, and after the "trustee" substituted his buddy's firm to settle a slam dunk case against petitioners ex spouse and a negligent bank, a settlement for easily half its true value because it was easier and quicker to do so, the estates new found assets were quickly ALL HANDED OVER TO HIS BUDDYS FIRM IN LEGAL FEES, None of which were earned, the Trustees own fees, and Lo and behold, three was not a single cent for a single creditor, much less the petitioner divorcee! Her listed debts were no more than $30-40k, the money sued for was the sale proceeds from her co-op that her ex embezzled an amount that could easily have reached $200K. But once her Chapter 7 petition was filed, the Trustee, and the rubber stamping Judge made her entire life savings GET EMBEZZLED A SECOND TIME! THE Defendant bank was thrilled to pay only half of what petitioners lawyers had forced the bank to acknowledge as their true responsibility, but which the Trustees EXPERT counsel cut in half to expedite payment. And then every single dime of that settlement went into the Trustees hand picked firm, in fees charged by them to reduce her settlement. Are referral fees to trustees REALLY prohibited? Are you sure? The Trustee still got HIS fees for the wonderful job he did. And the Report he filed with the court stated that "there just wasn't enoughbmoney left FOR ANYONE ELSE, NOT A DIVORCING CREDITOR OR THE DEBTOR. Now I ask you. In my case, whose records are all publicly available and every word verifiableon, file who are the REAL CRIMINALS? of course the ex husband who was NEVER prosecuted, but I believe the real criminals are obvious. This embezzlement was orchestrated at the first creditor meeting when petitioners PRO BONO attys, yes legit, talented pro bono attys were summarily replaced by the Trustees CRONYS. The rest, unbeknownst to me was a rerun of a dog and pony show that apparently has been playing longer than Jeopardy, but only the host and producers "win" the prizes. American Airlines should go through every single invoice, and insist on full accounting from all the lawyers who submitted bills, including their own. I guarantee the one partners bill in question IS PEANUTS compared to what they will uncover if they really look closely. I urge ALL CLIENTS to do the same with all itemized.bills. The biggest fraudsters get firm prizes, promotions and the adoration of their brethren. An outside counsel hired JUST TO REVIEW BILLS will repay his salary to you 1,000 times over. He's the only attorney in a bankruptcy case who actually DESERVES $1,000.00 an hour. The rest and their coconspirators deserve STRIPED PAJAMAS! (Btw, I can write many more of these sad but true stories. The problem is finding a publisher that will print them, and legislators who will try to fix them!) A. Rodrigues, Esq., adm 1981.

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