2nd Circ. Sends Thelen Clawback Suit To NY CourtNovember 15, 2013 – In The News
Yann Geron was featured in the Law360 article “2nd Circ. Sends Thelen Clawback Suit To NY Court.” While the full text can be found in the November 15, 2013, issue of Law360, a synopsis is noted below.
The Second Circuit declined to rule on a bid by Thelen LLP’s liquidating trustee to overturn a decision finding that he cannot recover fees earned by ex-partners from cases they carried over to new firms.
The three-judge panel said it could not make a decision without guidance from the New York Court of Appeals, which has not ruled on whether defunct law firms are entitled under the “unfinished business doctrine” to claw back hourly fees from partners who completed work that began at the defunct firm and closed at the new firms.
Trustee Yann Geron claimed that a waiver adding language to the firm’s partnership plan doing away with its right to any unfinished business was a fraudulent transfer because it deprived the partnership of its right to recoup earnings on unfinished business.