Masry Estate Disputes Help Drive 'Erin Brockovich' Firm Into Chapter 11
A slew of expensive estate litigation following the death of founding partner Ed Masry in 2005 has helped drive the law firm that made its former paralegal, Erin Brockovich, a household name into voluntary Chapter 11 bankruptcy reorganization.
A dozen lawsuits concerning Masry & Vititoe arose after Masry’s death from complications of diabetes, reports the Ventura County Star.
Among the issues being argued in a suit brought by Masry’s estate against the law firm are whether Ed Masry received $1.8 million in inappropriate advances and whether the firm or the estate is responsible for loans made to cover the expenses of toxic tort litigation, the newspaper reports.
So far, defending the litigation has cost the firm $3 million, reports the Wall Street Journal Law Blog.
“This drain of money and staff resources has threatened the debtor’s cash flow and focus, consequently making it more difficult to pay for ongoing litigation expenses and operating expenses,” the Masry & Vititoe says in its Monday filing in the Central District of California.
Brockovich, who no longer works for the firm, became famous after a movie was made in 2000 about how she worked to help win a $333 million settlement from Pacific Gas & Electric in 1996 concerning a contaminated drinking water case in Hinkley, Calif. Julia Roberts won an Oscar playing the title role.
