Amicus Brief: Geron v. Seyfarth Shaw LLP (NYS Court of Appeals)

SUMMARY

The Committee on Bankruptcy and Corporate Reorganization filed an amicus brief in the New York State Court of Appeals in Geron v. Seyfarth Shaw LLP. The brief seeks to address the question of whether under New York law a client matter that is billed on an hourly basis is the property of a law firm such that upon dissolution and in related bankruptcy proceedings, the law firm is entitled to the profit earned on such matters as the unfinished business of the firm. The brief argues the unfinished business doctrine should not apply to hourly fee matters and that applying the doctrine improperly treats the clients of a dissolving law firm as property of the firm, devalues the attorney-client relationship, and subordinates the interests of its clients to those of its creditors. The brief urges the Court to hold that the application of the unfinished business doctrine to hourly fee engagements is improper under New York law and public policy.