Lawyers For Bankrupt Firm Won’t Owe Rent

Individual lawyers who worked at Dewey & LeBoeuf won’t be held personally liable for paying rent the firm owed when it went under. At the time that Dewey’s predecessor firm signed the lease in 1989, it agreed to offer personal liability of partners in lieu of a security deposit. However, changes were made to the lease since then and in the ensuing years no vote or other agreement to personal liability was obtained from Dewey’s partners. Therefore, a New York judge ruled, the 327 former partners targeted in the suit cannot be held personally responsible. Former partners aren’t entirely off the hook for bankruptcy-related costs. They have clawbacks and, in some cases, unpaid loans for capital contributions when they joined the firm.