Detroit manager defends Jones Day fees and expenses

The former Jones Day partner who is the emergency manager of Detroit has defended the charging practices of his ex-colleagues who are now advising him, saying that he would need 'six to eight additional firms' if he were without Jones Day.

Jones Day has caught the headlines again for its work on the bankrutpcy of Detroit - as a fees analysis reveals that one partner charged US$34,000 to cover trips to and from his Florida holiday home and another $5,000 for private cars. The Detroit News says that the travel to and from Florida by partner David Heiman is 'more than the average annual pension of retired Detroit police officers and firefighters ($30,607) and almost twice as much as a non-uniform retiree’s pension'. 

Magnitude

Kevyn Orr, the manager of Detroit, said: 'Given the magnitude of what I’m dealing with, if I didn’t have Jones Day, I might have had to hire six to eight additional firms.' Another lawyer defended the travel costs, suggesting that action often has to be taken quickly in bankruptcy proceedings. Source: ABA

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