After a prolonged mediation process, the LeClairRyan bankruptcy estate looks to have reached a sizable settlement in one of the case’s most high-profile disputes, RichmondBizSense.com reported. The collapsed Richmond law firm’s liquidation trustee has agreed to settle her dispute with legal services giant UnitedLex for $21 million, according to court transcripts. Trustee Lynn Tavenner had initially sued UnitedLex in 2020, seeking $128 million in damages, claiming the company wrongfully benefited from LeClairRyan’s demise through their failed ULX Partners joint venture. The settlement fends off a trial between the two sides that had been set to begin today and run through May 27. It also allows all involved to walk away without admitting fault or liability. The agreement, which still must be approved by the court, was preliminarily reached less than an hour before the parties had to meet in front of Judge Kevin Huennekens on April 19. At that hearing, Erika Morabito, an attorney with law firm Quinn Emanuel representing Tavenner, presented a summary of the settlement. The $21 million in cash would be paid from several sources, Morabito said, according to a transcript of the hearing. The largest chunk would be $12.25 million in insurance proceeds from a policy through CNA that covered UnitedLex. Another $8.25 million would come directly from UnitedLex and its private equity backer CVC Capital Partners. An additional $500,000 would come from another insurance policy from Travelers Insurance Co.
