Barclays Bank plc v Lester Charles Landgraf, Londell McMillan and Elias Farrah
5 May 2015, seven to nine days
For the claimant, Barclays Bank plc
Fountain Court Chambers’ Guy Philipps QC and Adam Zellick instructed by TLTpartner Richard Clayton
For the defendants, Lester Charles Landgraf, Londell McMillan and Lewis Rosenbloom
4 Stone Buildings’ John Brisby QC and Alexander Cook, instructed by Candey partner Andrew Dunn
For the defendant, Elias Farrah
4 New Square’s Dan Saoul, instructed by Signature Litigation partner Graham Huntley
This case will be of great interest to many in the legal profession. It relates to the May 2012 collapse of Dewey & LeBoeuf and sees the firm’s bank, Barclays, seek to recoup money from partners of the defunct firm.
When Dewey folded, over 200 partners owed Barclays Bank about $60m which they had borrowed to fund their equity contributions to the firm and which had been lost in the firm’s bankruptcy.
Issues under scrutiny will include partner loan programmes and the financing of equity contributions in LLPs. It could affect whether lending will continue to be available at all to those wishing to become or remain partners in professional firms.
Should the court side with the defendants’ contention that the money cannot be recovered from partners, it is likely to make banks reluctant to lend money for capital contributions in the future.
Read the full article here.