A Lawyer’s Legal Dilemma: What would you do (Part I)?

This actually happened to a very good friend of mine, so this isn’t from Boston Legal. The details have slightly been altered. No real names will be mentioned. Tell us what you would do.

So, you have just graduated from one of the nation’s premier law schools. Even though you can now officially call yourself a caffeine addict –due to the unearthly amount of coffee you had to drink to last you through the unholy hours of nights during law school- you are now a full-fledged lawyer. And you were lucky enough to get hired as a First Year Associate by a top Wall-street law firm…

To say that you are excited about your new job would be an understatement. Your first case is already assigned to you. Much to your surprise, it is a very high profile case. It was featured in the Wall-street Journal. The name of your law firm was also in it. But your name, of course, was nowhere to be seen. You are determined to do your best and impress the jaded law firm partner that you report to. Of course, as the most junior person on the list, your task was to simply complete the most menial assignments. Nevertheless, you know you are involved in a case that will change the lives of thousands of people.

Here is your case: A gigantic Fortune 100 company is going to claim bankruptcy. By doing so, you understand that the company will be relieved of some of its obligations. One implication of which is that the company will no longer be responsible for returning its employees retirement funds. You know that this company employs tens of thousands of people nationwide. You imagine how devastated the employees would be when they find out that their retirement fund is gone. They depended on this fund.

You imagine how the employees try to save a chunk from their paychecks, month by month, year by year, with the hope of someday enjoying a comfortable retirement. This hope helped them get through their days at work. You imagine Bill from Accounting or Jane the secretary. Both of them have been with the company for 20 years, saving bits of their salary every single year, hoping that they will be able to stand up on their own when they retire. And now the company is setting Bill and Jane aside. What will Bill and Jane (and thousand others) do? They no longer have any savings for retirement. Their own company, for which they have dedicated 20 years of their lives to, has (legally) stolen from them. Flipping burgers at McDonalds until they reach 75? They are simply too old to hold another job.

You also noticed something strange. Why does the company have to resort to bankruptcy? There certainly are other alternatives that are not as devastating. Your further probing reveals that by claiming bankruptcy, the top management of the said company will be compensated more than simply handsomely. The CEO will be richer by tens of millions of dollars. And of course, your law firm will also enjoy a fat share of it.

To be continued…