Howrey clawback bankruptcy case goes to Ninth Circuit appeal

There have been conflicting rulings in various cases relating to the Howrey law firm as to whether profits on the unfinished business a collapsed firm should stay with that firm (and, so, probably go to the creditors) or accrue to the new firms that partners join. 

Jones Day

Bankruptcy judge Dennis Montali in San Francisco, who is allowing the appeal, has allowed trustees in bankrutpcy for Howrey to sue Jones Day and Seyfarth Shaw for treated profits on this kind of unfinished business as their own. He could have dismissed the case of the Howrey trustees but said instead: 'The matter is of significant public importance to the legal community' since there is an 'ever present possibility of the failure of other law firms in the future'. Source:  JDSupra