[ by Melanie Gretchen ] Dewey & LeBoeuf will offer some of its former partners a proposed settlement on Wednesday, as the fallen New York law firm tries to recover money from partners who left before the firm's collapse.  To this end, Dewey has opted to settle claims against partners who received substantial salary guarantees, as well as partners perceived to have taken value from the firm when their clients followed them to new firms – by paying them. Status Report: Desperate Times? Toward recouping lost money sooner rather than later, collecting money could add a lot to the pot, considering the firm was one of New York's biggest law firms.  [CI Note: Even if the firm has to pay many lawyers, the firm could get more than if partners were to win the claims and partners accepting the settlement will be guaranteed any offered dollar amount.]  At its peak, the firm had 1,450 attorneys; before it filed for Chapter 11 protection in U.S. Bankruptcy Court in Manhattan on May 28, it still had 300 partners. To date, however, it has not been determined which partners would be asked to return money under Dewey's proposal and how much each individual partner would be asked to return – though none of the firm's creditor constituencies have officially agreed on a dollar figure for a settlement, said Ed Weisfelner, a lawyer for the committee.  Despite delays, Mr. Togut said the firm was close to a settlement with former partner when it filed for bankruptcy, positing the possibility of smooth sailing [CI Note: Could it get any rougher for the firm?].

"There are a lot of hours between now and Wednesday and hopefully we'll reach some closure.  I would have thought Dewey would seek approval, a thumbs-up, from its creditor constituencies." -- Mr. Weisfelner.

The case: In re Dewey & LeBoeuf LLP, U.S. Bankruptcy Court, Southern District of New York, No. 12-12321. For further details, go to [Reuters, 7/9/12] and [Reuters, 5/29/12].