Its a huge legal malpractice case, and we reported it over the summer. Now WG moves for summary judgment against the National Benevolent Association of the Christian Church, which claims malpractice in their Chapter 11 Bankruptcy filing. We’ll follow for the decision. In the meantime, Anthony Lin of the NYLJ writes:
"Weil Gotshal Moves to End Legal Malpractice Suit
Weil, Gotshal & Manges has moved for summary judgment in a legal malpractice suit brought against it in Texas by a former bankruptcy client. The National Benevolent Association of the Christian Church (Disciples of Christ), one of the largest non-profits ever to file for bankruptcy, sued Weil Gotshal in September 2005, claiming the New York law firm pushed it into a "disastrous" Chapter 11 filing rather than exploring a negotiated settlement with creditors. The St. Louis, Missouri-based group, which runs shelters for the elderly and teens, once had 2,500 employees in 20 states and annual revenues and contributions of $145 million. Following the 2004 bankruptcy, the group shrank to 365 employees in five facilities, though it retained a $70 million endowment. But in its summary judgment motion filed last week, Weil Gotshal said the group’s claims were based on "nothing more than speculation, conjecture and surmise." The law firm said there was no evidence that the group’s creditors had ever offered it any out-of-court restructuring, much less a "better deal" than the group got through its bankruptcy filing. Weil Gotshal also noted that the malpractice suit was filed by the association’s current board of trustees, not the one it had represented. The firm said all of the board members in office at the time were fully apprised of the bankruptcy and alternatives, and none held Weil Gotshal to blame for the outcome. The firm’s motion will be heard Jan. 27 in the U.S. Bankruptcy Court for the Western District of Texas, where the group filed its Chapter 11 petition." – Anthony Lin