Chrysler pays Jones Day nearly $19M

Posted on May 5, 2009 12:51 by Janet Conley

Chrysler LLC has paid Jones Day more than $18.8 million over the past six months for legal work related to the ailing carmaker’s Chapter 11 restructuring.

That’s according to an application to employ Jones Day as counsel for debtors and debtors in possession, filed Thursday, the same day the Auburn Hills, Mich., carmaker sought bankruptcy protection with the U.S. Bankruptcy Court for the Southern District of New York.

Some $13 million already has been used for prepetition services, according to the application; the remaining $5.7 million is being held in retainer.

The application also lists the names and billing rates of some of the attorneys working on the case, including one business restructuring partner from Atlanta, Jeffrey B. Ellman. Ellman bills at $725 per hour, the fourth highest rate listed in the rate schedule. New York employee benefits and executive compensation attorney John R. Cornell claims the highest hourly rate, at $950.

Ellman is one of three primary lawyers on the case. The others are lead counsel Corinne Ball of the firm’s New York office and David G. Heiman of the firm’s Cleveland office. Both bill at $900 per hour.

Rate ranges for other lawyers and professionals who may be tapped to work on the restructuring are as follows:

Partners: $425-$950

Of counsel: $375-$800

Counsel:  $300-$625

Associates: $175-$625

Staff attorneys: $225-$450

Paralegals: $150-$350

Project assistants and other staff: $50-$375

Other firms which Chrysler has so far filed applications to employ are Schulte Roth & Zabel as debtors counsel and Togut, Segal & Segal as conflicts counsel. Neither firm has a Georgia office.


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Janet ConleyThe Deal Watch Blog is devoted to bringing you the latest news in business law in Atlanta, the Southeast and the U.S. The lead writer is Daily Report associate editor Janet L. Conley.

Janet L. Conley is an attorney who returned to journalism after practicing law with Akin, Gump, Strauss, Hauer & Feld in Washington and with the Georgia Legal Services Program in Atlanta.

During her tenure at the Daily Report, Janet, now the paper's associate editor, has covered law firm economics and management, business and federal courts. In 2007, she received the Georgia Associated Press Story of the Year award and the Atlanta Press Club’s Journalist of the Year award, both for small circulation newspapers, for "Green to Gold," a series of articles on how climate change will alter business and the law.

Janet has written for The American Lawyer magazine and the National Law Journal, among other publications. She also served as managing editor of GC South magazine.

Janet holds a journalism degree from Southern College and a juris doctor degree from the University of Pennsylvania. She lives in Decatur with her husband Mark Harper, also an attorney, and their three children.

She can be reached at jconley@alm.com.

Andy PetersThe contributing writer is Daily Report staff reporter Andy Peters.

Andy Peters has been a journalist since graduating from Furman University in 1992. A short list of the subjects he’s covered includes the Georgia state Legislature, the U.S. semiconductor industry, the Alabama-Florida-Georgia “water wars” litigation, the 1999 American Airlines pilots strike, Coca-Cola and PepsiCo’s battle to acquire the Gatorade sports-drink brand, indie rock music and high school football. Andy has written for Bloomberg News, the New York Times Web site, the Macon Telegraph, the Spartanburg (S.C.) Herald-Journal and the Atlanta Business Chronicle.

Andy has written the Deal Watch column for the Daily Report since March 2006. He was born in Chattanooga, Tenn. in 1971 and grew up in Ringgold, Ga. He lives in Decatur with his wife and two children.

He can be reached at apeters@alm.com.

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