[ by Melanie Gretchen ]

The liquidation of Dewey & LeBoeuf, a once venerable law firm, is just about complete.  Nine months after filing the largest law firm bankruptcy case in United States history, a federal bankruptcy judge gave final approval to the plan to pay back the firm's creditors.

The claims, which total about $550 million, will be funded, in part, by the $72 million contribution from 450 former Dewey partners.  By returning a portion of their payouts, the former law partners are able to insulate themselves from future lawsuits connected to the firm’s collapse. 

Winding down Dewey has far exceeded most people's expectations and, according to Al Togut, Dewey's lead bankruptcy lawyer, the entire process was superior to past liquidations of other large law firms - in terms of speed and ease.

"Here we are about to make history.  This the diametric opposite of Finley Kumble, which took 20 years, or Shea & Gould, which took 9 years, and even the modern-day Coudert Brothers case, which still isn’t done." -- Mr. Togut, before Judge Martin Glenn approved the plan.

For all the success the trustees had in liquidating the law firm, Mr. Togut expressed regret that such a firm had to fall:  "They say that a good settlement is where no one is happy.  Well, I can assure you, no one is happy."

Investigations Continue.   The government's investigation into the actions of former Dewey Chairman Steven Davis, and former Executive Director Stephen DiCarmine.  Going forward, the primary responsibility of the firm's trustees will be to continue returning money to Dewey's creditors. 

At the height of its success, New York-based Dewey & LeBoeuf, had almost 1,400 lawyers operating in 26 countries worldwide.  As the firm's infrastructure began to crack, some 300 Dewey partners abandoned ship for other large corporate firms, speeding up the firm's decline.  Winston & Strawn and Proskauer took advantage of the exodus by hiring 23 and 13 former Dewey partners, respectively.

For further details, go to [Dealbook, 2/27/13].