Pepper Hamilton LLP’s Southfield office is one of a dozen local law offices that will begin logging billable hours in Detroit’s federal bankruptcy case. That list also includes Clark Hill PLC, which is ending another legal contract with the city in order to represent two of its largest creditors.
The Detroit-based firm of more than 300 attorneys in seven states confirmed it has just ended its lobbying contract of several years; the firm represented the city’s federal lobbying interests through Clark Hill’s government and public affairs group.
But Clark Hill attorneys Ronald King and Robert Gordon now represent the employees’ General Retirement System – the largest single creditor with a claim of just over $2 billion in pleadings filed by the city – and the Police and Fire Retirement System in the Chapter 9 bankruptcy before Judge Steven Rhodes and a related civil lawsuit by the pensions before the Michigan Court of Appeals.
That dual role drew some criticism from a spokesman for the city last week.
“(Clark Hill) represented both the City of Detroit and the pension funds for a number of years – and had a conflict waiver in place to do so,” the firm said in a statement. “In light of the recent court filings related to the City’s bankruptcy, it was mutually determined – by both our firm and the City of Detroit – to end our representation of their federal lobbying interests.”
The appeals court on Tuesday imposed a stay on the pension funds’ civil lawsuit and two others before Ingham County Circuit Judge Rosemarie Aquilina, who had ruled last week that the bankruptcy filing was unconstitutional because it would lead to harm for those with pension benefits, and who had ordered Gov. Rick Snyder to reverse course and have Emergency Manager Kevyn Orr rescind the bankruptcy.
Pepper Hamilton partners Robert Hertzberg, co-chairman of the national corporate Restructuring and Bankruptcy Practice Group, and Deborah Kovsky-Apap both entered appearances in court this week as attorneys for Detroit in Chapter 9, alongside attorneys for Jones Day and Detroit-based Miller Canfield Paddock and Stone PLC for the city.
Both are based out of the Philadelphia law firm’s Southfield office, where its bankruptcy team is headquartered and which is expected to be most heavily involved. The Southfield team traditionally maintains several specialties in corporate, bankruptcy and reorganization, labor relations and litigation.
Thomas Wilczak, managing partner of the firm’s Southeast office and co-leader of its Environmental Practice Group, declined to comment on the firm’s involvement and deferred to Hertzberg, who could not be immediately reached. Pepper Hamilton has also represented bond insurer Syncora Holdings, which had its own lawsuit against the city moved to federal court earlier this month, and Syncora is expected to be a party in the bankruptcy before Rhodes as well.
But what about the other creditors’ counsel?
Of the nearly two dozen companies to enter appearances as creditors, 10 so far have tapped Michigan law firms as counsel in that case – though most will likely coalesce into a committee of unsecured creditors with its own representation. And a few of those firms are actually co-counsel right now with out-of-state attorneys at some of the nation’s largest law firms.
Several attorneys at Southfield-based Erman, Teicher, Miller Zucker and Freedman PC are taking point for union creditors Detroit Police Officers Association, Detroit Police Comand Officers Association, Detroit Police Lieutenants and Sergeants Association and The Detroit Fire Fighters IAFF Local 344.
Grand Rapids-based Warner Norcross & Judd LLP is representing bond insurer UBS AG along with Merrill Lynch Capital Services Inc. as creditors, while Troy-based Dean & Fulkerson is representing National Industrial Maintenance and Dykema Gossett PLLC has entered an appearance for Health Alliance Plan of Michigan.