Law Firm To Disgorge $13M In Fees In Asbestos Case

Law360, New York (February 13, 2006, 12:00 AM EST) -- A bankruptcy judge has ordered the disgorgement of more than $13 million in attorney’s fees paid to law firm Gilbert Heintz & Randolph LLP due to an alleged conflict of interest in a contentious Chapter 11 case over asbestos injury claims.

The firm was hired as special insurance counsel for flooring materials company Congoleum Corp. in January 2004, but drew the ire of insurers, who claimed the firm did not disclose its involvement in arranging settlements for as many as 10,000 claimants.

In a scathing decision,...
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