Bankruptcy Law

Disbarred lawyer can’t discharge debt he owes state bar for client losses, bankruptcy judge says

A disbarred California lawyer can’t use a bankruptcy to discharge more than $2 million in debt that is owed to a fund used to reimburse his former clients, a federal bankruptcy judge has ruled.

Jun 17, 2021 12:19 PM CDT

Jurors are told former law firm partner created sham creditor to help client shield assets

Did a former Freeborn & Peters partner create a sham creditor to help his client shield assets in a bankruptcy? Or did he engage in a legitimate legal strategy to try to save a struggling business and help out a neighbor?

Jun 14, 2021 2:11 PM CDT

Suit claims law firm leader began firings after complaining about employees’ support for Trump

A lawsuit filed in Minnesota state court has alleged that the leader of a law firm ordered the firing of two employees for supporting former President Donald Trump and then ousted three partners who told him that his actions violated state law.

Jun 10, 2021 9:16 AM CDT

Lawyer described as ‘Don Quixote of student debt’ relief decides to run for Congress

A lawyer who has been pursuing relief for student borrowers in bankruptcy court has decided to run for Congress in 2022 on a platform that includes reforming rules for cancellation of such debt.

Jun 1, 2021 4:18 PM CDT

Fee applications in Boy Scouts bankruptcy exceed $100M; judge calls total ‘staggering’

The court overseeing the Boy Scouts of America bankruptcy case has appointed an examiner to review fees that have become a point of contention.

May 12, 2021 12:36 PM CDT

Afternoon Briefs: NRA bankruptcy petition tossed; prosecutors say man imprisoned for over 40 years is innocent

Judge tosses NRA bankruptcy petition U.S. Bankruptcy Judge Harlin D. “Cooter” Hale of Dallas has dismissed a Chapter 11 petition filed by the National Rifle Association in its bid to leave New York and reincorporate in Texas. New York Attorney General Letitia James is seeking to dissolve the NRA for…

May 11, 2021 4:32 PM CDT

3 BigLaw firms will give back $1M in Purdue Pharma legal fees in settlement with trustee

Three large law firms have agreed to reduce fee applications by $1 million in their bankruptcy representation of Purdue Pharma, the maker of the prescription pain medication OxyContin, after the U.S. trustee alleged a failure to disclose a common interest agreement.

May 3, 2021 12:01 PM CDT

Manage your bankruptcy law practice with this software

Case management software for bankruptcy lawyers has been a burgeoning legal software category for a number of years, and there are now a few products available that cater to this practice area, writes lawyer Nicole Black of MyCase.

Apr 27, 2021 9:01 AM CDT

After name partner goes missing, lawyers get no paychecks; clients allege millions of dollars in lost funds

Legal woes are mounting for Kossoff name partner Mitchell Kossoff, who is facing lawsuits from clients alleging the theft of millions of dollars in escrow funds and the resignations of multiple lawyers from his New York City real estate law firm.

Apr 20, 2021 12:02 PM CDT

Polsinelli’s commitment to diversity was ‘mere pretense,’ alleges gay ousted partner in bias suit

A former bankruptcy partner at Polsinelli claims that the firm denied him associate and administrative support, lowered his compensation, de-equitized his partnership, and replaced him with a younger, heterosexual woman, all because of his sexual orientation and age.

Apr 1, 2021 3:44 PM CDT

Afternoon Briefs: State supreme court limits use of bail; prosecutors in this state may face stricter discipline

California judges must consider defendant’s ability to pay when setting bail, ruling says The California Supreme Court ruled Thursday that it is unconstitutional to keep criminal defendants behind bars simply because they cannot afford to post bail. The decision upholds an earlier ruling that ordered a new bail hearing for…

Mar 26, 2021 3:14 PM CDT

Afternoon Briefs: Ex-lawyer sentenced for show-pony secrecy; DOJ drops suit over Melania Trump book

Ex-lawyer sentenced for failure to disclose ponies A former Virginia lawyer has been sentenced to six months in prison for failing to disclose in a bankruptcy proceeding her family’s ownership of several show ponies. Laura Wright, 53, was a lawyer with prior bankruptcy experience at the time of the bankruptcy…

Feb 9, 2021 4:43 PM CST

Cole Schotz settles suit against lawyer accused of revealing confidential documents in bid to injure BigLaw

A federal judge in New Jersey has dismissed Cole Schotz’s claims against a former bankruptcy associate whom it had accused of revealing two confidential law firm documents and threatening to disclose even more.

Feb 2, 2021 3:48 PM CST

Afternoon Briefs: BigLaw partner faces architect’s suit; Weinstein accusers will receive compensation

Suit claims Orrick partner didn’t fully pay for architect’s work Orrick Herrington & Sutcliffe partner Jeannie Shin is facing a lawsuit by an architecture firm claiming that she illegally copied its plans for improvements to her San Francisco home. The suit by Jennifer Tulley Architects Inc. claims that the purloined…

Jan 28, 2021 5:04 PM CST

Brown Rudnick settles $300M malpractice suit over bankruptcy representation

Brown Rudnick has settled a $300 million malpractice lawsuit alleging that it mishandled its work as a litigation trustee in the 2009 bankruptcy of chemical company LyondellBasell.

Jan 28, 2021 10:22 AM CST