Dewey Estate Withdraws Request for $165,000 Bonus

Facing opposition from creditors and the U.S. trustee’s office, Dewey & LeBoeuf’s bankruptcy advisers stated in a late Oct. 2 court filing that they have abandoned their plan to pay a $165,000 bonus to the firm’s former finance director, who is performing the same job for the defunct law firm’s estate. Dewey’s advisers had asked the court to approve the payment of bonuses totaling $220,000 to three staffers, including finance director Frank Canellas. Scott Ratner, an attorney representing Dewey, said that the estate is withdrawing the bonus motion only as it relates to Canellas.

Tracy Hope Davis, the U.S. trustee overseeing the Dewey case, objected to the bonus proposed for Canellas in a Sept. 27 filing. Hope Davis noted in the filing that if Canellas were to receive the extra $165,000, his total 2012 compensation of $665,000 would top the $615,000 he earned in 2011, when the firm was still fully functioning. Dewey filed for bankruptcy protection May 28. Hope Davis also argued that Canellas should be prohibited from receiving a bonus because of his status as a Dewey bankruptcy “insider.”