In a widely watched case, a Manhattan judge ruled on April 1, 2016, that former partners cannot be held personally liable for the remainder of the office lease of Dewey & LeBoeuf LLP, which had filed for bankruptcy in 2012. The landlord had sued hundreds of former partners of the law firm and its Dewey Ballantine predecessors to hold them individually liable for rent until the office lease expired in 2020 — up to $220 million. The court granted motions to dismiss the lawsuit based on the language of the lease and the criteria for personal liability of partners in a limited partnership. The decision is important for the lease obligations of law firm partners.
ECBAWM partner Dan Kornstein successfully represented 44 former Dewey Ballantine partners in the case.