The Dewey Disaster Update: What Happens to the Partners’ Capital Contribution?
Now that most of Dewey’s partners have left the firm and the firm is expected to announce bankruptcy shortly, the main question is: will the partners who paid a capital contribution get their money back.
The contribution, ranging from $100,000 to $250,000 is the amount that partners pay when they decide to invest and work for a certain law firm. But with Dewey not even having money to pay rent on its office spaces, the partners getting their capital back looks doubtful. Most of the partners from LeBoeuf have still not got back their amounts which they gave to the newly formed Dewey & LeBoeuf in 2007. One of the partners, Andy Ness was quoted by Am Law as saying , “I did not see a dime of capital returned and I don’t expect to see a dime.”
Last year, Dewey had told its partners in a quarterly statement that the firm was putting the money meant to be paid back into a bank account at Barclays for them. But an inquiry by the partners in concern with Barclays showed that no such payments had been made.