Legal Week newspaper reports that the ‘partner contribution plan’ – which could see partners asked to contribute between $25,000 and $3m each into a pot expected to reach $103.6m – would absolve the former partners of any future liability.
Ring fenced
However, a group of UK partners -- led by former finance chief Bruce Johnston and including Fred Gander, the former London head of pre-merger Dewey Ballantine, capital markets heavyweight Camille Abousleiman and high-profile insurance partner Joseph Ferraro -- have decided not to take part in the settlement.
Two former partners told Legal Week that the group is unwilling to co-operate as even without taking part in the deal, members of the English limited liability partnership are ring-fenced from any form of claw back under UK law.
One partner commented: ‘I am very concerned about the idea of being personally liable for any unfinished business we took with us to our current firm. There is a feeling that we will be able to negotiate a better deal if the bankruptcy is placed into the hands of a chapter 7 trustee.’
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