CALUMET PAINT & WALLPAPER
In early 2021, a large arbitration award was entered against Calumet (a family owned retail paint shop) and in favor of a former salesperson of Calumet. Although Calumet did not participate in the arbitration, the salesperson was aggressively pursuing collection of the award in state court. Lacking any way to slow down the state court collection efforts, Calumet hired David Welch and Brian Welch to file a Chapter 11 bankruptcy case for Calumet. The filing of the Chapter 11 case resulted in the state court collection proceeding being automatically stayed pursuant to the Bankruptcy Code. After obtaining the breathing room afforded by the Bankruptcy Code, the parties returned to state court to litigate the validity of the arbitration award. The state court vacated and invalidated the arbitration award and remanded the matter to be re-litigated before a new arbitrator, affording Calumet its day in court. Calumet successfully navigated Chapter 11 and confirmed a plan of reorganization. Although the salesperson continued to assert a claim of approximately $2.4 million, Calumet restructured its payment obligations to all of its creditors, collectively, to no more than $410,000 over a 3 year period. During the Chapter 11 case, Calumet separately litigated with the salesperson’s principal and obtained a $60,000 judgment to recover commissions that were overpaid over the years. Ultimately, the salesperson’s claims (which had grown to approximately $3 million) were re-arbitrated. Following a contested arbitration hearing, it was determined that Calumet had no liability to the salesperson, and the arbitrator entered an arbitration award in favor of Calumet as the prevailing party to recover its attorneys’ fees from the salesperson.
PRO BONO IN PRACTICE: Partner Nicholas Gowen was appointed by the U.S. Court of Appeals for the Seventh Circuit to represent a formerly incarcerated inmate in a matter involving Eighth Amendment claims under Bivens, Egbert, and Carlson. Associates Christine Eduardo and Christopher Verdugo led the briefing, and Nick presented oral argument before the Court. Following the argument, the Court commended the Burke Warren team for its outstanding advocacy and dedication to protecting constitutional rights through pro bono service. Burke Warren was proud to represent Chicago Jewish Day School in a major renovation project that modernized the school’s learning environment, including a food lab, student union and innovation center that will serve 235 Chicagoland students.
Made with FlippingBook - PDF hosting