Banking giant Barclays is attempting to avoid a full trial over defunct firm Dewey & LeBoeuf after issuing a summary judgment application to the High Court in a case against three former partners over loans.
The bank has been pursuing the three former partners for repayment of loans it granted them for capital contributions ahead of the firm’s collapse in 2012 (29 May 2012).
The bank is preparing a summary judgment application against one of the partners, Lester Charles Landgraf – the result of which will determine whether other ex-partners will have to pay back the loans. If the application is successful judgment will automatically in favour of the bank.
The trio, which also includes Londell McMillan and Lester Charles Landgraf, have instructed Candey partner Andrew Dunn to defend cases against them valued at $550,000 and $496,000 respectively.
Dunn has instructed 4 Stone Buildings’ John Brisby QC and Alexander Cook for the trial, which is expected in February.
Dunn is representing around 100 ex-equity partners who were awarded professional practice loans by Barclays (27 July 2012). After the firm went under Barclays demanded repayment of the loans but the former partners claim they could not be liable as the money went straight into the firm.
Barclays first launched proceedings against McMillan in December 2012 following the dramatic collapse of Dewey & LeBoeuf in the US and UK in May 2012.
McMillan issued a counterclaim and launched proceedings in the US, arguing that Barclays “intentionally failed to disclose” Dewey’s indebtedness to him to “induce” him to enter into a loan agreement, “assuming it [the agreement] is not a fabrication” (20 February 2013).
That case is ongoing and directions of the London case will depend on the outcome of the Landgraf test case.