Bankruptcy

The Economics of Lehman

By Stephen Lubben

So Lehman has commenced yet another adversary proceeding, this time to recover a preference. The alleged preference is for $206,000.

The complaint has three attorneys on it:  two partners and an associate. The associate bills out at $630 per hour. 

If the defendant can spend more than 325 hours on discovery -- about four weeks (using the standard 80 hour workweek in NYC) -- who is going to try the case?

(And that's assuming the partners never look at the adversary again -- and ignoring time already spent on the case).

Full post as published by Credit Slips on March 16, 2011 (boomark / email).