Diamond McCarthy sues ex-partner over Dreier fees

Leading bankruptcy practice Diamond McCarthy is suing ex-partner Sheila Gowan, seeking some of the US$1.4m that is likely to be paid to her for work in the Dreier law firm bankruptcy.

A dispute has arisen over a law firm bankruptcy case Kuzma

She is expected to receive US$1.4m into her bank account for work done as a Chapter 11 trustee in the Dreier bankruptcy. But Diamond McCarthy claims that she should be bound by a partnership agreement regarding the fees. It alleges breach of the partnership agreement and of fiduciary duty, as well as making some equitable claims, seeking punitive damages and lawyer’s fees. 

Partnership agreement

Ms Gowan, a non-equity partner in the firm until a year ago, claims she did not sign the partnership agreement. She worked in the New York office and the writ comes from the Houston head office of Diamond McCarthy. Diamond McCarthy is well-known in the world of professional bankruptcy, having also worked on Dewey & LeBoeuf, Howrey and Heller Ehrman. Source: ABA

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