Gary LeClair and UnitedLex won’t be able to wriggle free from their dispute with the LeClairRyan bankruptcy estate just but.
U.S. Individual bankruptcy Choose Kevin Huennekens past week denied LeClair and UnitedLex’s makes an attempt to dismiss allegations which find to establish they experienced a hand in and benefitted from the longtime Richmond legislation firm’s demise.
In a 28-page belief, Huennekens dominated that trustee Lynn Tavenner sufficiently alleged much more than a dozen counts to allow for the situation to go on to the following step in the litigation process.
The judge’s impression does not verify the trustee’s allegations are accurate it just allows the make any difference go on on, in which a lot more of the arguments from both of those sides can be fleshed out further more.
The trustee has cast LeClair and UnitedLex, respectively, as a “deceitful law agency ‘entrepreneur’ conspiring with an opportunistic ‘global business authorized expert services provider’… to manipulate a regulation firm for their possess attain and benefit.”
Co-launched by LeClair in 1988, LCR at a single point experienced dozens of places of work and hundreds of legal professionals right before swift enlargement and alleged money mismanagement triggered it to spiral into insolvency and a drawn-out collapse that ended with personal bankruptcy in the summer of 2019.
Tavenner 1st sued UnitedLex in 2020, trying to find $128 million in damages by alleging that its unwell-fated ULX Associates joint enterprise with LCR was a conspiracy to siphon hundreds of thousands out of the 30-year-aged regulation company as it was teetering towards collapse.
ULX was consummated in LCR’s remaining months to slice charges by outsourcing again-workplace careers to the new undertaking. Billed at the time as an progressive strategy, it is now viewed as getting experienced a hand in the regulation firm’s undoing.
From LeClair, who jumped ship to Richmond rival Williams Mullen a month prior to LCR’s collapse, Tavenner seeks to recoup all around $3 million in so-referred to as fraudulent transfers he obtained from the company in its remaining five several years.
Both of those LeClair and UnitedLex argued that Tavenner’s promises really don’t maintain h2o, while Huennekens explained it is also shortly in the procedure to establish that out.
As these allegations dwell on, Tavenner also proceeds her legal struggle with dozens of previous LCR shareholding companions.
And later on this thirty day period, previous longtime LeClairRyan lawyer Bruce Matson is established to be sentenced in a felony scenario connected to his embezzling of resources from individual bankruptcy trustee accounts. That situation is technically unrelated to the LCR individual bankruptcy, although Matson has settled with Tavenner in negotiations that to-day have been kept sealed.