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News
Texas Lawyer newspaper
By John Council
9-26-2005
Church Charity Sues Weil, Gotshal Over Bankruptcy Advice
New York-based Weil, Gotshal & Manges faces allegations that
it negligently advised a nonprofit corporation to file bankruptcy
in Texas and pursued a litigation plan designed to generate excessive
fees for the firm rather than saving its client from financial
ruin.
The allegations are included in National Benevolent Association of the
Christian Church (Disciples of Christ), et al. v. Weil, Gotshal & Manges, a
complaint filed in the U.S. Bankruptcy Court in San Antonio before Judge Ronald
King. The nonprofit filed the suit on Sept. 14 as part of its Chapter 11 bankruptcy
that is still pending in King's court.
Palmer and other Weil, Gotshal lawyers advised NBA to file for Chapter 11
bankruptcy protection in San Antonio, where NBA owned a facility called Patriot
Heights. NBA agreed, and filed the Chapter 11 bankruptcy in February 2004 — one
of the largest Chapter 11's ever filed by a nonprofit corporation, says NBA's
attorney, Daniel Sheehan of Dallas' Daniel
Sheehan & Associates. Read
Full Story (registration required).
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