Neal Gerber partners sued for $9m

(On Campus Interviews, Summer Associate positions, Firm Reviews, Tips, ...)
Forum rules
Anonymous Posting

Anonymous posting is only appropriate when you are revealing sensitive employment related information about a firm, job, etc. You may anonymously respond on topic to these threads. Unacceptable uses include: harassing another user, joking around, testing the feature, or other things that are more appropriate in the lounge.

Failure to follow these rules will get you outed, warned, or banned.
User avatar
greenchair
Posts: 150
Joined: Sat May 08, 2010 1:04 am

Neal Gerber partners sued for $9m

Postby greenchair » Sat Dec 14, 2013 10:55 pm

According to sources — including former partners who have spoken with insiders at Neal Gerber — partners are being asked to sign personal guarantees and pay the $9 million over a period of three to five years and amounts based on their stakes in the firm. The figure, which averages about $90,000 per partner, represents what won't be covered by insurance, these sources say.

http://www.chicagobusiness.com/article/ ... settlement

I'm in business associations right now and I can't figure out why the partners aren't protected by the LLP?

09042014
Posts: 18282
Joined: Wed Oct 14, 2009 10:47 pm

Re: Neal Gerber partners sued for $9m

Postby 09042014 » Sun Dec 15, 2013 2:17 am

greenchair wrote:According to sources — including former partners who have spoken with insiders at Neal Gerber — partners are being asked to sign personal guarantees and pay the $9 million over a period of three to five years and amounts based on their stakes in the firm. The figure, which averages about $90,000 per partner, represents what won't be covered by insurance, these sources say.

http://www.chicagobusiness.com/article/ ... settlement

I'm in business associations right now and I can't figure out why the partners aren't protected by the LLP?


I have no clue what the deal is here, but often creditors demand personal guarantees from owners of entities with limited liabilities. They could worry Neal Gerber could go Dewey and not pay anything.

Pokemon
Posts: 1860
Joined: Thu Jan 12, 2012 11:58 pm

Re: Neal Gerber partners sued for $9m

Postby Pokemon » Sun Dec 15, 2013 2:30 am

Well, for the partnership to keep on operating, they probably need to pay the $9 million fee. The article calculated that to $90,000 per partner. Otherwise, they could file bankruptcy and be personally protected...

bigbobbybass
Posts: 21
Joined: Mon Jul 29, 2013 4:04 pm

Re: Neal Gerber partners sued for $9m

Postby bigbobbybass » Sun Dec 15, 2013 3:20 am

They're liable because it's a malpractice claim and limited liability doesn't extend to malpractice. If a partner in an LLP commits malpractice, they, and any other partners that played a part, are individually liable (although the LLP as a whole is not).




Return to “Legal Employment”

Who is online

The online users are hidden on this forum.