New York, California Law Differ on Who Gets Defunct Firm’s Fees in Pending Hourly Cases

Unfinished hourly fee matters of a dissolved law firm do not remain its property under New York law when departing partners finish up that business at other firms, the U.S. District Court for the Southern District of New York held Sept. 4 in the bankruptcy proceeding of the defunct firm Thelen LLP (Geron v. Robinson & Cole LLP (In re Geron), S.D.N.Y., 1:11-cv-08967-WHP, 9/4/12).

The case applies New York law in one of two consolidated fraudulent transfer cases filed by the bankruptcy trustee against firms that took on former Thelen partners. Judge William H. Pauley III decided ...