Jim Ferraro's Cleveland Firm Files For Chapter 11.....in Miami.

The legal maneuvering continues in the long-simmering dispute between Jim Ferraro and the widow of the ex-partner of his Cleveland based law firm:

Kelley & Ferraro filed for Chapter 11 reorganization on Wednesday, Jan. 26, in a move that partner Tom Wilson said is aimed at resolving the nearly 5-year-old civil litigation pending against it.

The timing was not coincidental, Mr. Wilson said, as Wednesday was the day civil proceedings brought by Lynn Kelley, widow of firm co-founder Michael Kelley, were to resume in Cuyahoga County Common Pleas Court. Mr. Wilson said the bankruptcy filing automatically stayed the civil proceedings.

Currently, it's business as usual at Kelley & Ferraro, Mr. Wilson said. He said the firm filed for bankruptcy protection from creditors to do what's best for its clients.

The petition was filed in the Southern District of Florida, U.S. Bankruptcy Court, in Miami. Partner James Ferraro lives in Florida, and Mr. Wilson said bankruptcy counsel advised Kelley & Ferraro to file there.

Ms. Kelley's lawyer, Bill Wuliger, claimed Thursday that the firm's filing in Florida isn't “kosher” because the firm operates in Cleveland.

The bankruptcy filing is “extremely injurious” to Ms. Kelley and her son, and to the law firm and its clients, Mr. Wuliger contended. He called it an “atomic bomb on the Kelley family.”

“We're angry, we're upset, but we will survive and we will eventually, I believe, rectify the wrongs that have happened,” Mr. Wuliger said. 

 The case is before Judge Mark and you can see the docket here.

I hope Jim at least got a nice parking spot!

Should Any South Florida Lawyer Charge More Than $1000 An Hour?

Hey, what a surprise -- they've printed all the love notes between SC Governor Sanford and his Argentinian mistress!

I particularly like this one:

“…please sleep soundly knowing that despite the best efforts of my head my heart cries out for you, your voice, your body, the touch of your lips, the touch of your finger tips and an even deeper connection to your soul.”

Man, that dude is smooth! Even I'm getting a little turned on.

I understand the Governor -- who gave an A+ press conference BTW -- has not decided whether he will step down, even though he voted for three articles of impeachment against President Clinton based on Sanford's demand for "moral legitimacy."

Oh well, the heart wants what the heart wants, right?

So, slightly late to the party, Patrick Danner files the 315th adoring profile of Miami White & Case bankruptcy attorney Thomas E. Lauria.

One tidbit that came out of Patrick's story -- Tom bills at $1050 an hour.

Should any Miami lawyer bill that much?

Bankruptcy lawyers, help me out here -- Tom has billed millions of dollars to hard-hit pensioners in what Bruce Rogow politely describes as a "quixotic venture" to derail the Chrysler reorganization, with little tangible signs of success -- strike that, there has been a huge elevation in Tom's profile.

Listen, I'm in favor of lawyers making money as much as anybody else, but I'm having some trouble understanding what Tom has achieved in this representation. Has he improved the negotiating position for the pension funds?

What exactly is the end game here?

Let's Talk Tom Lauria!

The WSJ gives the love to Miami White & Case bankruptcy attorney Tom Lauria, who fought in vain to derail the Chrysler-Fiat sale:

Judge D. Michael Lynn of the Northern District of Texas, who presided over the Mirant case, says Mr. Lauria "is, if anything, overly tenacious." He sometimes focuses "on the justice of his client's position to the exclusion of the merit of the opposition's arguments," the judge adds.

It is a widely shared view among lawyers who have worked with Mr. Lauria or battled against him. "I don't know many lawyers in the bankruptcy practice who take the idea of zealous representation of their client as seriously as he does," says Richard Chesley, a Chicago bankruptcy lawyer who has worked with Mr. Lauria on a couple of cases.

According to the article, Tom received $900 an hour for his work in the Mirant bankruptcy.

And, according to the DBR, the Indiana pension funds have paid White & Case over $2 million for Tom's efforts, which proved unsuccessful as the Supreme Court ultimately cleared the sale.

Now we know White & Case is struggling, and was profiled in the NYT on Sunday as a poster case for the woes of BigLaw. Indeed, they recently fired over 200 lawyers, nearly 1 in 10, including partners.

So, bankruptcy lawyers, was the $2+ million well-spent?