Two years into Chapter 11 proceedings, the trustee for Howrey—the Washington, D.C.-based law firm that dissolved and entered bankruptcy in 2011—has reached a settlement with one of Howrey's insurance carriers, and is continuing to negotiate with 50 other law firms in an effort to recover millions of dollars to repay Howrey creditors, the Washington Post reported yesterday. Houston attorney Allan Diamond, whose role as trustee is to recover as much money as possible for the firm's creditors, filed papers with the bankruptcy court on Friday seeking approval for a settlement he has reached with the Attorneys’ Liability Assurance Society which provides malpractice insurance for Howrey. The agreement would funnel a minimum of about $5.2 million and up to $7.6 million to the Howrey estate. Diamond also filed lawsuits against seven law firms over "unfinished business" claims. Diamond has already reached such agreements with Holland & Knight and Fenwick & West that will bring at least $41,000 to the Howrey estate, according to papers filed with the bankruptcy court in late March.
To hear more about the Howrey case and law firm bankruptcies, make sure to register for next week's Annual Spring Meeting that will feature a joint session by ABI's Bankruptcy Litigation and Labor & Employment Committees on the topic. Click here for more information or to register.