LeClairRyan Co-Founder Wins Appeal in Lawsuit Over Tax Burden

The co-founder of defunct law firm LeClairRyan PLLC won a federal court appeal seeking to have his name removed from a list of equity holders that remain on the hook for tax liabilities.

A Virginia bankruptcy court and federal district court incorrectly interpreted LeClairRyan’s operating agreement and improperly held that Gary LeClair was barred from withdrawing his membership after the firm began to dissolve in July 2019, the US Court of Appeals for the Fourth Circuit ruled Friday.

In light of the error, the US Bankruptcy Court for the Eastern District of Virginia “abused its discretion” in denying LeClair’s prior ...