Bankruptcy Law

Former Dewey rainmaker who earned $6M in 2011 files for bankruptcy

Former Dewey & LeBoeuf partner John Altorelli has moved on to DLA Piper, where he is co-chair of its U.S. finance practice. But that move hasn’t ended his financial troubles. Altorelli, 57, filed for bankruptcy on Nov. 25, the New York Times reports. A rainmaker at Dewey, he earned $6…

Dec 15, 2014 9:02 AM CST

‘Real Housewives’ star files $5M suit against her bankruptcy lawyer, blames him for prison sentence

Reality television star Teresa Giudice filed a $5 million malpractice suit against her former bankruptcy lawyer Wednesday. It accuses attorney James Kridel of making mistakes both on her family’s original 2010 bankruptcy filing and in subsequent amendments, and blames him for the fact that she is headed to federal prison…

Dec 3, 2014 5:30 PM CST

Judge nixes fees for bankruptcy lawyer, citing ‘passive-aggressive’ response to required forms

A Massachusetts bankruptcy lawyer who repeatedly submitted court forms for one client without filling in all of the information they required was axed from the case on Monday by a federal bankruptcy judge. Citing attorney Walter Oney’s “passive-aggressive refusals to provide all of the pertinent information,” Judge Henry Boroff ordered…

Dec 3, 2014 2:30 PM CST

Disbarred lawyer wins appeal, has client-fraud conviction reversed after serving his prison time

A New York appeals court has reversed a disbarred bankruptcy lawyer’s 2011 conviction for defrauding 114 clients, finding that a trial judge erred in striking testimony by Christopher Chadick’s office manager after the witness took the Fifth. Meanwhile, Chadick already served the minimum time required under his 4- to 12-year…

Dec 3, 2014 1:15 PM CST

BigLaw bankruptcy lawyer billed Detroit $34K for travel to and from his vacation home

A Jones Day bankruptcy partner charged Detroit nearly $34,000 for travel to and from his Florida vacation home and almost $5,000 for private cars, according to a newspaper’s review of the legal tab. The partner is David Heiman, who billed at a rate of $975 an hour at the beginning…

Dec 3, 2014 7:16 AM CST

Can second mortgages on underwater property be voided in bankruptcy? SCOTUS to decide

The U.S. Supreme Court has agreed to decide whether a second mortgage on an underwater house can be voided in bankruptcy. The court accepted two cases from Florida on Monday involving second mortgages issued by Bank of America, report SCOTUSblog, the National Law Journal (sub. req.), Reuters, Courthouse News Service…

Nov 17, 2014 2:23 PM CST

How to curb the law firm exodus? Study looks at traits of those most likely to leave law practice

Law firms seeking to hire lawyers more likely to stay in law practice should be forewarned: Lawyers with “higher levels of resilience, empathy, initiative and sociability” are more likely to leave law practice than those with lower levels of those traits. That finding is from an online assessment of more…

Nov 13, 2014 5:45 AM CST

Judge OKs Detroit bankruptcy-exit plan, lets city slash over $7B from its debtload

Less than 16 months after the city of Detroit made history by becoming the largest U.S. city ever to file for bankruptcy, a federal judge has approved a restructuring plan that will allow the municipality to cut over $7 billion from its debt load. The Friday ruling by U.S. Bankruptcy…

Nov 7, 2014 2:00 PM CST

Wiley Rein is casting off its bankruptcy group

Corrected: Wiley Rein is spinning off its eight-lawyer bankruptcy and restructuring group, citing the anticipated needs of clients and its strategic plan. Wiley Rein managing partner Peter Shields confirmed the move in a statement. First to report the news were Above the Law and the Washington Post, according to an…

Nov 7, 2014 7:00 AM CST

On Forbes 400 list before 2008 business bankruptcy, ex-billionaire has paid $141.07 to trustee

Less than a decade ago, real estate entrepreneur Tim Blixseth was on the Forbes 400 list, with an estimated net worth of $1.2 billion. Now, after a divorce, the Yellowstone Club developer is dealing with its bankruptcy. A closed-door hearing is scheduled Monday in federal court in Butte, Montana, at…

Nov 3, 2014 1:15 PM CST

Bankruptcy plan for Stockton, California, that saves worker pensions is confirmed by judge

Saying that a bankruptcy plan for the California city of Stockton was “the best that could be done in terms of restructuring the city’s debts,” a federal judge on Thursday rejected arguments that bondholders should get a bigger share and allowed pensions for municipal workers to be preserved. U.S. Bankruptcy…

Oct 30, 2014 4:45 PM CDT

Bingham managing partner says firm is exploring options, including remote possibility of bankruptcy

Bingham McCutchen managing partner Steven Browne isn’t commenting on the firm’s possible merger with Morgan, Lewis & Bockius, but he does acknowledge his firm is exploring a variety of options. One of those options, albeit a remote one, is bankruptcy, he tells the Boston Globe. “I’m not going to pretend…

Oct 22, 2014 8:06 AM CDT

Settlement saves convicted attorney from making lengthy handcuffed trip to testify about law firm

A dispute between a bankruptcy administrator and a company to which $137 million was transferred before Marc Dreier’s law firm collapsed has been settled. So the former New York lawyer, who is serving a 20-year federal prison term in Minnesota for defrauding hedge fund investors of $400 million, won’t have…

Oct 17, 2014 11:25 AM CDT

Bankruptcy judge’s ruling that California city’s pensions can be cut could have big impact

A U.S. bankruptcy judge in Sacramento has ruled that the city of Stockton’s retirement-fund obligations to employees can be treated just like other debts in a proposed Chapter 9 reorganization, the Los Angeles Times reports. In previous bankruptcy cases of other California cities, California Public Employees’ Retirement System (CalPERS) had…

Oct 2, 2014 12:46 PM CDT

Chemerinsky: What to expect from the upcoming SCOTUS term

The U.S. Supreme Court’s summer recess is over and the justices will return to the bench for oral arguments on Monday. The court traditionally sets half the docket for the coming year before it adjourns in early July, and grants the remaining cases between late September and mid-January. The cases…

Oct 2, 2014 8:40 AM CDT