Lehman reportedly retained Weil Gotshal on 10 September. Five days later, Lehman filed for bankruptcy. Lehman paid the firm a $5m advance to cover legal fees and expenses arising from Lehman's negotiations and efforts to remain in business and to prepare for the possibility of the Chapter 11 filing if negotiations failed.
"The negotiations were unsuccessful and the Chapter 11 cases resulted," said Harvey Miller, the senior Weil Gotshal partner representing Lehman. "[Weil] is applying the advance to the charges for the professional services performed and to reimbursement of out-of-pocket expenses."
The sum contrasts with the $51.8m (£30.6m) the firm earned from Lehman for work done in the 12 months up to September, according to the filing. And the $5m is nothing compared with what the total spoils could be from the Lehman bankruptcy for lawyers. Lynn LoPucki, a professor at
The disclosure of Weil Gotshal's fees comes as part of a formal application by the firm to be retroactively hired as Lehman's bankruptcy lawyers. In a separate filing, also on Wednesday, Lehman sought to employ Curtis Mallet-Prevost Colt & Mosle as its conflicts counsel. The filing says Lehman asked Curtis Mallet to fill that role before the bankruptcy proceedings commenced.
Both applications lay out billing rates the two firms expect to charge Lehman. Weil says its partners charge $650-$950 (£384-£561) an hour. Curtis Mallet says its partners charge $675-$785 (£399-£517) an hour. Rates for counsel, associates and paralegals also are detailed.
Curtis Mallet bankruptcy partners Steven Reisman and Lynn Harrison will step in as Lehman's lawyers when a potential or actual conflict of interest arises with Weil Gotshal, the filings say. The application says Curtis Mallet has a history of serving as conflicts or special counsel, including in the bankruptcy cases of Northwest Airlines and Calpine.
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