A former LeClairRyan shareholder has been given the green light by a federal bankruptcy judge to begin collecting the nearly $1 million she won when she sued the now-shuttered law firm for gender discrimination.

U.S. Bankruptcy Judge Kevin Huennekens of the Eastern District of Virginia ruled that Michele Craddock can collect the money from the bankrupt firm, where she worked for 12 years until she was allegedly forced out in 2015 by discriminatory compensation practices. This includes trying to collect from LeClairRyan's insurance, Huennekens ruled.

If Craddock is unable to collect from the full amount "from sources other than property of the estate," she'll become a creditor in the LeClairRyan bankruptcy, Huennekens determined. Lynn Tavenner, the Tavenner & Beran attorney who is the Chapter 7 trustee of LeClairRyan's estate, offered no objection to Craddock's motion to collect that money.

"We were, obviously, very pleased," said Michael Wilson, Craddock's attorney in the bankruptcy proceedings. "The order was essentially conceded by [LeClairRyan]'s Chapter 7 trustee, and she also provided some input into the language in the order."

An arbitration panel had awarded Craddock $1.021 million in October 2018—that amount included back pay, compensatory damages for emotional distress and attorney fees, plus interest. LeClairRyan only challenged parts of the arbitration award before U.S. District Judge Robert Payne of the Eastern District of Virginia, meaning Craddock was free to collect $885,779.84, Wilson argued in a Sept. 18 filing.

Because of interest, Craddock is due nearly $1 million, with $395,000 going to her and $598,000 going to her lawyers in that litigation, Wilson said.

"We have not had significant pushback from the insurer, rather just requests to provide all of the necessary information and copies of the relevant orders and the AAA award," Wilson said.

LeClairRyan had challenged the fee enhancement the arbitration panel had awarded to Craddock's attorneys at Butler Royals. Payne agreed, vacating a portion of the panel's award and remanding it back to them so they can recalculate the attorney fees.

Payne's ruling came in June. Less than two months later, LeClairRyan announced it was dissolving. The arbitration panel hadn't completed its work on the revised award yet when LeClairRyan filed for bankruptcy.

Although an automatic stay was entered in the case, the panel completed its work on the revised arbitration award and submitted it in mid-September, Wilson said. Right now the revised award "stands and is enforceable," Wilson said, although he noted that Tavenner could move to have it voided.

Wilson signaled Tavenner doesn't care about that particular detail as Craddock is looking to have her claim covered by OneBeacon Insurance Group, LeClairRyan's insurer. If the firm's insurance can't cover it all, Craddock would pursue the remaining amount through the normal claims resolution process in the bankruptcy case, Wilson said.

"The Chapter 7 trustee is not going to go back and relitigate Michele's claim," Wilson said.

Craddock works with her husband John, also a former LeClairRyan attorney, at their own law firm in Richmond, Virginia.

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