Brokeback Lawfirm: It Gets Better By the Day
Thank you, Sullivan & Cromwell, for not settling this case and putting the mess behind you. The ongoing saga of Aaron Charney v. S&C is providing lawyers across the country with hours of entertainment.
Each week brings some exciting new development or salacious revelation. And yesterday’s hearing in New York Supreme Court, before Justice Bernard Fried, was no exception to this rule.
Discussion and links, after the jump.
Today’s New York Law Journal has a short piece on the proceedings. Some excerpts:
The judge who is overseeing the legal battle between Sullivan & Cromwell and former associate Aaron B. Charney, Tuesday ordered depositions of three lawyers who participated in a confidential Jan. 31 settlement meeting at which Charney’s lawyers claim a Sullivan & Cromwell partner “ordered” the ex-associate to destroy his personal hard drive….Manhattan Supreme Court Justice Bernard Fried ordered that [S&C partner Gandolfo “Vince”] DiBlasi be deposed on the limited subject of what was said about the hard drive at the meeting. He further ordered the limited depositions of two other lawyers in attendance, Sullivan & Cromwell associate Gera Grinberg and Grinberg’s then-lawyer Edward Gallion of Gallion & Spielvogel….
At the hearing Tuesday, Charney’s lawyer, Michael Kennedy, said Grinberg had been present at the settlement meeting and had taken notes reflecting DiBlasi’s threats but that those notes had been later destroyed by Gallion. Kennedy argued this destruction could also constitute spoliation and said Gallion, a onetime Sullivan & Cromwell associate, appeared to be acting as “an agent” of the firm.
Grinberg has since retained a new counsel, Gary Ireland.
Yes, sports fans, it’s true. As we briefly observed last night, Edward Gallion is no longer on the case. We will miss his delicious prestigiousness around these parts.
Far more detailed than the NYLJ write-up was the excellent, comprehensive coverage by fellow blogger Lavi Soloway. You can access his posts here and here.
We’ll be chiming in on them shortly, after we’ve had the chance to digest them — they’re quite substantial. So check back soon!
N.Y. Judge Orders Lawyer Depositions on Charney Settlement Meeting [New York Law Journal]
What Happened to the Notes Taken at the Settlement Conference? [Soloway]
Posturing on the Slippery Slope: The “Reign of Terror” and the Appearance of a Second Hard Drive [Soloway - Continued]
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Comments
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As I predicted Fasman is dragging this case out for profit, at S&C and Charney's expense.
white girls with asian guys
Kennedy's move in securing the three depositions was brilliant. People say terrible things in settlement talks because they are sure that these meetings will remain confidential. Kennedy has now made these threats a central issue in the case. There is no way that S&C will want the contents of the settlement discussions to come to light. This case will settle.
This case is a travesty to the legal world. If S&C is supposed to be the cream of the crop... sad day.
White girls with Asian Guys
http://blogs.wsj.com/law/2007/03/15/a-convicted-former-ceo-a-law-firm-partner-a-playboy-playmate/
http://www.philly.com/mld/philly/business/16899153.htm
maybe S&C won't care so much if the threats come to light? advertise a rep that they don't F around.
But it could very well be that S&C did F around a little more than it should have... if that came out.... bad bad bad
Sounds like S&C didn't put up much of a fight on the depos. If they aren't that worried about the depos, my guess is that there were no threats at least nothign out of the ordinary. Of course that's only a guess. We'll see.
I totally disagree. it sounds like they put up one heck of a fight but couldn't push it.
dude, what the fuck is up with these constant stupid white girls with asian guys references? no one cares.
Mix one hypersensitive associate with two abrasive partners = ABC v. S&C v. ABC
What was strange to me was that Stillman put up something of a perfunctory opposition, though I'd hardly call it a fight, more a resigned-to-his-fate last ditch effort, but all along seemed confident that if deposed, Gallion, Grinberg and DiBlasi would not corroborate Charney's account of being ordered to destroy the hard drive.... and remember the notes have been destroyed....
Yes Kennedy was brilliant.
That's some real conversation for your ass.
"Thank you, Sullivan & Cromwell, for not settling this case and putting the mess behind you."
Lat- Thankfully, this case will not settle for a long time. I'm sure S&C would have loved to have settle this case, but how in the world was S&C going to settle this case for any number approaching a reasonable one. ABC ran to every media outlet that would publish his allegations against S&C and then demanded 5 million bucks for a complaint that consisted of one homophonic comment, one ambiguous one, and not being assigned to mentor a student. Most bona fide civil rights litigation complaints allege a lot more, a lot.
Even if ABC would have settled for one fifth of his demand - a million bucks for such a light complaint? A settlement like that, even with a "confidentiality" provision (they are routinely violated and hard to enforce) would have set off a number of copycat suits costing S&C more in $$$ and reputation. S&C is just picking its battle to prevent copycat suits.
So long as S&C doesn't lose clients from this case (has it?) and recruiting doesn't take a big hit (has it? I'm sure there's an anecdote of a coule of students choosing not to apply, but anything measurable?) not settling this case doesn't seem so outlandish. ABC already made the complaint as public and as widespread as he could and everyone already knows that law firms are tough and demanding places to work. S&C may not be coming off smelling like roses from this, but at least they aren't just folding over. Ironically, clients are probably secretly happy knowing that the firm works their associates to the bone.
And though S&C doesn’t have a knight-in-shining armor image from this case – it’s gotten its shots in. ABC is no longer the sympathetic victim we thought he was at first, but he kind of comes off as hyper-sensitive with a strange chip on his shoulder. Also, the fact that ABC admittedly stole documents from his employer will not look good to any future employer, whatever his next profession may be. Before this suit, I had no idea they had 11 openly gay partners. S&C just seems like a tough place to work (duh) but one that’s pretty gay friendly.
We need to know Charney's settlement demand. If he's asking for $5M or even $1M then I hope he gets AIDS. He's the Howard K. Stern of biglaw.
yikes. It's 3:25. His settlement demand was 5 mil. I hope he doesn't get AIDS. what a terrible thing to say. 3:32- your comment is gonna make ABC sympathetic when he's not. The debate should be on how ABC turned this into a shit storm for everyone around.
I just think there is so much we don't know. regardless of which side you are on or whatever you think is really going on in this case (none of us of course have all facts and it sounds like there is seriously dirty stuff in there) ... the poster at 3:32 wishing AIDS on Charney... you are one sick SOB
There is nothing that a biglaw partner likes less than being deposed. It takes time and energy and pisses off big egos (who can be asked whether they are taking any medication, etc).
There is nothing that a biglaw partner likes less than being deposed. It takes time and energy and pisses off big egos (who can be asked whether they are taking any medication, etc).
"you are one sick SOB"
I demand $5M for that insult.
P.S. I don't really hope he gets AIDS. I'm just angry that he could so easily cash in on a fortune while I have to bust my ass every day.
Why was Gera Grinberg even at this meeting? Is he thinking of suing S&C as well? I'm still confused as to why he is on a leave of absence.
I'm telling ya - there's just a whole lotta stuff we don't know and it all sounds bad. Since Charney can't look much worse than he already does all it's going to do is make the firm look worse.
Nothing good can come of this lawsuit for S&C at this point. They have filed asinine motions, they are about to get deposed on a settlement conference, none of this is good.
They need to write a $600,000 check and put this behind them.
S&C should have made a PUBLIC settlement offer of $500k before the shit hit the fan. That would have been their optimum strategy.
But no, they had to listen to Fasman, or whoever is giving them bad advice, and inflame the dispute. Now S&C's lawyers will get rich off this case, and S&C/Charney will get dragged through the mud.
I don't think ABC will settle for 500K or 600K. Nothing he's done so far in this case has been rational.
A public settlement offer of 500K would be nuts. New S&C plaintiff's would come forward every three minutes and say they were yelled at because they are gay, white, disabled, female, asian, bi-racial, etc. and also deserve 500K.
Dunno if S&C's motions were "asinine" in the scheme of things. Sure they wont win them, but it was a great opporunity to show that court - look, this isn't the typical sympathetic civil rights plaintiff, in reality, ABC is someone with no problem stealing documents from his employer and destroying evidence.
Sure S&C will lose their motion, but they'll make an impression on the judge on what kind of charachter ABC really is.
"New S&C plaintiff's would come forward every three minutes."
Preposterous. If Charney had a choice he would have never chosen this route for his career. No one would choose employment litigation as a way to make money. Keep in mind that $500k is only 2x Charney's salary.
And $500k probably won't cut it anymore. Charney's got a dream team of lawyers who need to be compensated. At this point I think S&C should propose a confidential $1M settlement.
"no one would choose employment litigation as a way to make money."
Really?
6:09, hehe -- yeah, I think employment litigators would beg to differ with L2L...
I wasn't talking about the lawyers. I don't even want to read about this case anymore. It's a complete trainwreck.
Actually, Loyola 2L, you're the trainwreck.
Why does everyone assume S&C was being unreasonable? Maybe they offered him $500,000, an apology and job placement assistance. Maybe Charney is the one who refuses to settle.
Did I file a seemingly frivolous lawsuit which will subject my client to embarassing and avoidable depositions?
If I were handling this case it would have never gotten this ugly. I wouldn't be as rich as defense lawyers who know how to inflame a case for profit, but my client would be better off, as would the legal profession.
8:01 - I doubt they offered Charney anything reasonable. It sounds like all they did in the settlement conference was yell at him. The yelling certainly explains why Charney was so distraught that he took a hammer to the hard drive. It seems like they viewed Charney as weak and tried to take advantage. You have to remember that Charney couldn’t even get attorneys until Fasman and S&C filed the lawsuit against him. I guess at that point Alterman had enough of the bullying and decided to offer Charney some help.
Charney ain't shit but hoes and tricks.