I saw that the Dewey & LeBoeuf law firm is folding. That’s huge news and the latest indication of just how farkakte the economics of the legal business are. But I had forgotten who D&L’s most recent high profile client was. Here’s Steve Dilbeck of the L.A. Times:
News has come from back east that the law firm of Dewey & LeBoeuf is filing for bankruptcy. Besides the little detail that this is the largest law firm to go under in U.S. history, there is this one other notable fact: The law firm going bankrupt is the same law firm that handled Frank McCourt’s bankruptcy of the Dodgers … Hey, I know a guy flush with $1 billion who might be able to give Dewey a loan. You could argue he even owes them.
Sadly, we can’t pin this on McCourt. Rather, we can pin it on a ridiculous compensation system that has law firm partners promising themselves insane draws despite the fact that revenues won’t support it anymore because business clients aren’t as dumb as to simply rubber stamp every legal bill that comes in to the accounting office like they did back in the 80s.
Mamas, don’t let your babies grow up to be corporate lawyers …
Tigers first baseman/DH Miguel Cabrera is being sued by a woman from Orlando, Florida who claims that he “unilaterally” reduced the amount of his monthly child support payments, Tony Paul of The Detroit News reports. Cabrera, who has three children with his wife Rosangel, also had two children with Belkies Mariela Rodriguez in 2013 and 2015.
Cabrera pays more than $6,200 per month in child support and helped Rodriguez purchase a nearly $1 million house. Rodriguez’s attorney calls Cabrera’s monthly payments “inadequate” because her children don’t quite have the same standard of living as Cabrera’s three children with Rosangel. Cabrera’s legal team accused Rodriguez of “embarking on a mission to extort additional moneys to be used for her benefit under the guise of child support.”
Cabrera, 34, signed an eight-year, $248 million contract extension with the Tigers in March 2014, which officially began in 2016. He made $22 million in 2014-15, $28 million in 2016-17, and will earn $30 million from 2018-21 and $32 million in 2022-23.
Along with reduced child support payments, Rodriguez alleges Cabrera left her “high and dry” when it came to monthly expenses with the house he helped her purchase.
Cabrera has requested that the judge recuse herself from his case, as her husband has a title with Rodriguez’s lawyers’ law firm following a merger. He is scheduled to be questioned under oath during a videotaped deposition on Thursday in Orlando. Rodriguez is scheduled for her deposition on Friday.
Cabrera is not the only player to find himself embroiled in such a case. Bartolo Colon was also sued for back child support for a “secret family” last year.