Steven Otillar – formally a Houston-based energy partner at Dewey - was responding to a motion for summary judgment in lieu of complaint by Citibank after the bank sued Mr Otillar for an unpaid capital loan of $210,000. The motion was opposed in papers filed last month in the New York Federal court.
Mr Otillar, in his response to the motion, claimed that the capital loan scheme, set up by Citibank for the law firm, meant that "unsuspecting lateral hires" would join "the failing firm as equity partners, who would then be responsible for making significant capital contrubutions to DL when its revenue was insufficient to pay its obligations..." He claimed he would never have joined the law firm had he known about its financial situation.
A Citibank spokesperson said in a statement: ‘These claims are without merit and we intend to defend ourselves against them vigorously.’
http://www.thelawyer.com/ex-dewey-partner-claims-citibank-conspired-to-lure-laterals/1014109.article
http://www.bizjournals.com/boston/blog/mass_roundup/2012/09/dewey-leboeuf-bankruptcy.html
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