Dewey Sued By Former Landlord

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It never seems to be quite over for Dewey. The law firm, Dewey & LeBoeuf, made one of the largest bankruptcies in law firm history this last year, and the repercussions of its collapse are resounding and ever-lingering. The latest noise comes from the former landlord, who points out that the firm, in its heyday, and before its merger in 2007 signed on for a lease that would last until 2012. That would suggest that aside from the $1.6 million in unpaid rent Dewey has accumulated since April 2012, Dewey would still owe $45.45 million for the life of the lease. Such a headache!

Yet under real estate law, a landlord is not allowed to recover money from a former tenant if the space is rented to a new tenant. And as Am Law Daily reported, Chadbourne & Parke are set to take over the six floors formerly held by Dewey, once the place is remodeled.

  

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There is also some sketchy business about exactly who is responsible for the rent considering the contract with the landlord was made before 2007, when a merger landed plenty of fresh partners into the firm who feel they should not be accountable for previously made contracts. The landlord, which refers to itself as 1301 Properties in the suit, nevertheless is claiming the partners “are jointly and severally liable for all amounts that are due and will become due,” but such stipulations will have to be tested again in the never-ending headache of Dewey’s belabored and long-lasting disintegration.

Last Friday the Dewey partners began to coordinate a response to the suit, saying “we believe it is in the interest of all concerned to defend this action in a coordinated and uniform manner.” A steering committee has formed, said AM Law Daily, “to aggressively defend this action, which we believe to be meritless.” Dewey may be down, but former partners are still kicking.