DC Court Shoots Down Bankrupt Howrey's 'Unfinished Business' Claims
"A law firm does not have a 'legitimate claim of entitlement' to hourly billed client matters because it is the clients who retain the right to control the representation," Chief Judge Anna Blackburne-Rigsby wrote.
February 14, 2020 at 05:37 PM
4 minute read
The original version of this story was published on The American Lawyer
Law firms have no property interest in hourly billed client matters, the D.C. Court of Appeals ruled Thursday, undercutting the "unfinished business" claims of bankrupt Am Law 100 firm Howrey.
While Howrey closed its doors in 2011, the unanimous ruling by a three-judge panel has major implications for law firms that have picked up groups of lawyers—and their clients—when other law firms failed or dissolved.
The judge rejected the claims made by Allan Diamond, the managing partner of Diamond McCarthy who is the Chapter 7 trustee overseeing the estate of Howrey, in a case that caught the attention of major national and international law firms and the American Bar Association. Diamond had argued that the estate was owed money from law firms including Jones Day, which hired 22 former Howrey partners who brought with them client matters that originated at Howrey.
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