Michael Lessne, with Nelson Mullins Riley & Scarborough. Courtesy photo

A Broward lawyer believes a recent case foreshadows a coming wave of litigation.

The attorney represented the trustee, Maria Yip, in a complicated bankruptcy case involving a Fort Lauderdale restaurant. And he expects similar disputes to erupt from the South Florida economy in the coming months.

Michael D. Lessne, a partner at Nelson Mullins Broad and Cassel in Fort Lauderdale, represented the trustee in a landlord-tenant dispute involving the Las Olas Boulevard restaurant and bar.

The landlord's prepetition termination of the restaurant's lease claimed the restaurant had missed two consecutive rent payments, but the restaurant claimed the landlord was looking to redevelop the property for other purposes.

The restaurant sued the landlord seeking declaratory relief and damages in Broward Circuit Court, only to be countersued by the landlords for eviction.

The restaurant soon filed bankruptcy and the second trustee in the case, Maria Yip, retained Lessne's services.

The case would become one of the most challenging cases that Lessne has litigated in his time as an attorney, due to the alleged gross mismanagement of the resturant.

Lessne, 37 years old, is not afraid of challenging cases, and has excelled so far in his legal career, according to those who have worked with him.

Chambers and Partners, an independent research company that ranks lawyers and law firms across the country in various practice areas, distinguished Lessne by naming him an up-and-coming lawyer in the South Florida bankruptcy community, as has the Daily Business Review one year earlier.

Lessne is expecting the restaurant's case to be representative of what will follow the Aug. 1 expiration of Florida's moratorium on evictions and foreclosures.

Due to the crippling effect that the coronavirus and the stay-at-home orders had on the South Florida economy, foreclosures and evictions are expected to flood the court system after the moratorium expiration, severely crippling bank financial performance due to bad loans, and having a domino effect on larger clients who may have difficulty accessing financial capital.

It took an 11-hour marathon mediation for the two parties in the bankruptcy case to broker a settlement between the debtor and the landlord, which will permit the restaurant to remain open under a modified lease for the next four years. That settlement resulted in the dismissal of the bankruptcy case.

"This was a unique situation," Lessne said. "And it prepared me for what's to come next."

'Whole package'

Lessne was born in Fort Lauderdale in 1982 to a middle-class family. His father, a book publisher, traveled to various trade shows as part of his work, and loved to tell a story to friends and family about a time when his son joined him at one of these shows.

At one trade show, Lessne's father was trying to sell the foreign rights to his books to representatives from China. As Lessne's father was showing the representatives books — saying "look at this one" — his son and publisher-in-training noticed a book that his father did not yet mention.

"I showed the Chinese rep a book and he bought it," Lessne said. "It was a book on tying knots. It was the only book they bought."

Lessne's dad gave him credit for that book's rights, and it was an early introduction to the field of business for the future lawyer. Growing up, Lessne knew he wanted to enter the business profession, and studied accounting at the University of Florida to learn "the language of business."

After earning his undergrad degree and master's in accounting from the University of Florida, Lessne pivoted from accounting and enrolled in law school at the University of Miami.

Lessne was immediately drawn to bankruptcy law as a process to preserve the value of businesses and based upon the power of a trustee to pursue claims for the benefit of the creditors.

Patrick S. Scott, a partner at GrayRobinson in Fort Lauderdale, said that he hired Lessne out of law school because he looked like a talented new lawyer who could immediately provide value to the firm, especially since Lessne was already a certified public accountant.

"And he turned out better than I dreamed of," Scott said. "He had the whole package. He was a quick study, had a business analysis framework for approaching issues, and he was willing to work very hard."

While Scott said he was not looking for an attorney with a lot of people skills, it became apparent that Lessne also had that attribute, which is essential "if you are going to be a rainmaker."

Lessne, now a partner at Nelson Mullins Broad and Cassel in Fort Lauderdale, was not focused solely on his commercial litigation, bankruptcy, creditors' rights and restructuring  practice for for-profit companies.

Since becoming an attorney, Lessne has volunteered his time to help a variety of nonprofit companies in the South Florida area, expanding his skill set while giving back to the community. Among those nonprofit companies is the Broward Center for the Performing Arts.

Peter Neirouz, the director of development and membership at the Broward Center, said what started as a nominal donation turned into Lessne devoting his time to leadership roles within the organization.

While Neirouz did not request that Lessne single handily rewrite the entire organization charter for the Broward Center, it was something that Lessne did because it would set up the nonprofit for future success.

As Lessne is looking toward the future in South Florida, he is reminded of the settlement in the Fort Lauderdale restaurant bankruptcy case.

"The settlement, in this case, worked because the trustee had a complete understanding of the business," Lessne said. "We were able to together evaluate the situation with fresh eyes, which resulted in a really productive settlement conference and a settlement."

Already, the South Florida retail market is facing several players filing for Chapter 11 bankruptcy protection, such as CMX Cinemas, Neiman Marcus and RTW Retailwinds, owner of New York & Company, which filed Monday.

Media companies, like the McClatchy Co., the owner of the Miami Herald and several other publications, have filed for bankruptcy.  Ownership of McClatchy has since been purchased in a bankruptcy auction.

And small businesses, including restaurants and storefronts that dot the streets and corners, are reeling as the coronavirus spurred away business and is once again threatened by the return of temporary closures.

Lessne and other lawyers in weeks and months ahead are expecting to face unprecedented bankruptcy litigation. The experience will prepare them when they are the preeminent bankruptcy attorneys handling the next crisis likely a decade into the future.

Kenneth Welt, a U.S. bankruptcy trustee, has been a fiduciary for 40 years. Welt, a nonlawyer, has used Lessne's services in several of his cases.

Welt is predicting that Lessne will continue to have a promising practice as a bankruptcy and restructuring lawyer in the future.

"The big aspect is that I get to choose Michael," Welt said. "I definitely consider him one of the best lawyers in town."

 

Michael D. Lessne

Born: 1982, Fort Lauderdale Spouse: Ashley Boxer Education: J.D., University of Miami School of Law; M.Acc and B.S.Ac., University of Florida Experience: Partner, Nelson Mullins Broad and Cassel, 2017-present; Shareholder, GrayRobinson, 2009-2017