Head of Dewey & LeBoeuf's entertainment and sports group Londell McMillan was one of 220 partners at the firm, which took a total of US$56m in loans from Barclays. While most of the partners have now repaid the loans or come to an agreement, Mr McMillan - lawyer to Prince, Stevie Wonder and others - argued that he should not be forced to repay it. He said that the loan was set up to benefit the firm - now bankrupt - rather than to benefit him. 

Judge's decision

Giving his judgement, the judge, Mr Justice Popplewell, said that Mr McMillan was 'unwilling to accept what was plain on the face of the documents and seemed to me to have convinced himself of a version of events which was inconsistent with the contemporaneous record'. Dewey is currently in the spotlight, with three of its former senior executives on trial in the US accused of making misleading statements to the banks which were lending to them.

Effect of ruling

Tony Williams, former managing partner of Clifford Chance and founder of the Jomati consultancy, said: 'This was a case closely watched by the banks because if Barclays had lost it could have pushed up the pricing of such loans or made them less available to law firm partners.' Source: Financial Times