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Bankruptcy lawyer comments on CEO’s discussion to put his hotel into bankruptcy

Bankruptcy Law

A New York law firm is arguing against the malpractice claims brought against them by a real estate investor, as reported by the New York Law Journal in an August 21st, 2012 article.

The law firm of Wilkie Farr & Gallagher are claiming that the suit brought against them are “purely speculative” and within the guidelines of the law.  The suit was filed by Lightstone Group’s CEO and is seeking roughly $104 million in damages. These damages were a result of the firm’s alleged advice to put a hotel owned by the CEO into bankruptcy.

In the law firm’s motion to dismiss they claim that their advice was well within the limits of Delaware laws. Furthermore, under the firm’s fiduciary duty they were required to formulate the best option for the company to maximize the hotel’s  long-term value.  Lastly the firm insists that they attempted every other option to prevent bankruptcy but was unable to find one.

If you are in debt or are considering bankruptcy, it is advisable to consult with an attorney. Jayson Lutzky has been practicing law in New York for over 29 years and understands people’s rights and obligations. Call our office at (800) 660-5299 to set up a free consultation. Visit us online,www.BankruptcyNYC.com.

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