Diamond
Diamond v. Jones Day LLP (In re Howrey LLP)
Opinion
Lead Opinion
Montali, J.
Chapter
MEMORANDUM DECISION ON MOTIONS TO DISMISS
I. INTRODUCTION
Plaintiff Allan B. Diamond, chapter 11 Trustee (“Trustee”) for debtor Howrey LLP (“Howrey” or “Debtor”), filed multiple nearly identical complaints for avoidance and recovery of actual and constructive fraudulent transfers and for an accounting and turnover and other relief, seeking to recover from several law firm defendants the value of profits received by them with respect to unfinished business that previously had been handled by Debtor. Relying on District of Columbia law which in turn relies on Jewel v. Boxer, 156 Cal.App.3d 171 , 203 Cal.Rptr. 13 (1984), Trustee seeks to recover profits realized or to be realized by the defendant law firms from Debtor’s unfinished business (“Howrey Unfinished Business”). Trustee alleges that pre-petition waivers executed by Howrey partners relieving them of their duty to account for profits made on the Howrey Unfinished Business (the “Jewel Waiver”) constituted fraudulent transfers, and that the defendant law firms are liable as subsequent transferees. Several defendants moved for dismissal of the complaints, and on February 7, 2014, this court issued a memorandum…