Ex-Dewey leadership battles lawyer's $1.8m claim

Three former leaders of bankrupt law firm Dewey & LeBouef who are being sued by an ex-partner for allegedly lying about the firm's finances have applied for the case to be moved from California state court to federal bankruptcy court.

Bankruptcy court: Dewey case builds

According to the Am Law Daily web site, patent litigator Henry Bunsow launched the lawsuit against New York-based Dewey's former chairman Steven Davis, chief financial officer Joel Sanders and executive director Stephen DiCarmine, as well as partners Jeffrey Kessler and James Woods, on 12 June in connection with their roles the recruitment process of Mr Bunsow from Howrey in January 2011.

Insurance

Mr Bunsow claims he was misled about Dewey’s financial position, and he is seeking the return of $1.8 million in capital contributions as well as $5m in compensation.
Mr Davis, Mr Sanders, and Mr DiCarmine then joined to oppose Mr Bunsow’s action, arguing that his claims are against the firm, and therefore the suit should be merged with Dewey’s bankruptcy case in New York. Their application also claims they are protected by Dewey's insurance policies and are entitled to indemnification from the firm.

Litigation boutique

Mr Kessler -- now at Chicago-based global firm Winston & Strawn -- consents to the so-called notice of removal, according to the filing. Mr Woods, the filing states, has yet to be served by Mr Bunsow.
Mr Bunsow -- who started a litigation boutique along with several ex-Dewey staff a few weeks before Dewey's final collapse -- had no comment because, he said, he had not yet seen the removal request.

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