Facts

When the now-defunct Howrey LLP voted to disband, a group of 11 lawyers moved to Baker & Hostetler LLP. The Howrey estate accused the group of wrongly keeping proceeds from work they had begun at Howrey and taken to their new firm after Howrey dissolved.

Another former Howrey partner, who left the firm to join McDermott Will & Emery LLP, was also alleged to have taken unfinished business to her new firm.

Allan B. Diamond, the Chapter 11 trustee of Howrey's estate, filed settlements with the court to resolve the claims against both Baker and McDermott.

Howrey dissolved on March 15, 2011. In June 2011 the firm succeeded in converting an involuntary Chapter 7 petition into a Chapter 11 proceeding.

Result

Howrey and Baker & Hostetler settled for $41 million. The deal also allows the estate to recover a percentage of future profits in continuing contingency-fee cases. Howrey and McDermott settled for $105,000.