Apportionment of Fees – Quantum Meruit

By: Derek Hawkins//June 28, 2016//

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7^th Circuit Court of Appeals

Case Name: ACF 2006 Corp v. Mark C. Ladendorf et al

Case No.: 15-3037; 15-3048

Officials: EASTERBROOK, MANION, and ROVNER, Circuit Judges.

Focus: Apportionment of Fees – Quantum Meruit

Victims have priority over lender for funds fraudulently taken by law firm in fraud action.

“The norm that victims of a lawyer’s breach of trust have a remedy notwithstanding the later grant of a security interest to a commercial lender is one of long standing and is reflected in Indiana by §30-4-3-22(c)(2). Section 23-1.5-2-7 tells us that the use of the corporate form to hold assets of a legal practice does not change that norm. It follows that the Victims have priority over the Lender in the funds that the Conour Firm is entitled to receive from the Lawyers.”

Reversed and Remanded

Full Text

Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.

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