Outside attorney is named to take control of Peter Angelos’ law firm, assess whether it should be sold or dissolved – Baltimore Sun
Attorney William J. Murphy has been appointed conservator of Peter Angelos’ law firm, taking control of the practice built by the now-incapacitated legal titan and Orioles owner amid a bruising family fight over his assets.
Murphy, a partner with Zuckerman Spaeder in Baltimore, declined to comment on his appointment by a court order issued Tuesday.
He is currently involved in another high-profile case, with law partner Gregg Bernstein, representing an anonymous group of people who fought to keep secret a court battle over releasing a Maryland Attorney General’s Office investigative report on child sexual abuse in Baltimore’s Catholic archdiocese. The church is paying, in part, for the lawyers for the group, made up of people named in the report but not as abusers.
Murphy will take over the Angelos firm’s records, bank accounts and client files, and ultimately assess whether it should be sold or dissolved.
It’s a fate that would have been unimaginable in the firm’s prime, when it won hundreds of millions of dollars in awards and settlements against companies found to have harmed steel mill and shipyard workers and others with asbestos exposure.
But the firm had become one of the points of contention in a legal battle that has erupted among family members of Angelos, 93, who has been in failing health for about five years and is no longer able to manage his affairs.
His younger son, Louis, hath sued his brother John, the chairman and CEO of the Orioles, and their mother, Georgia, saying they were working to seize control of the ailing patriarch’s fortune. The suit revealed that Georgia Angelos wanted to sell the Orioles and either sell or wind down the law firm. Last week, Louis Angelos added a claim that his mother and brother “plundered” more than $64 million from a bank account held by Peter Angelos.
Georgia Angelos sued her younger son, saying he had sold the Angelos law firm to himself in a transfer that amounted to theft and financial “elder abuse.”
At a hearing last week, Baltimore County Circuit Judge Keith R. Truffer accepted an agreement between lawyers for both sides to put the firm in conservatorship and invalidate Louis Angelos’ transfer of the firm to himself. Louis Angelos, who is a lawyer and had been managing the firm since his father’s incapacitation, had said in court filings that the transfer was necessary because state law requires that the firm of an attorney who becomes disabled be taken over by another attorney.
The Morning Sun
Get your morning news in your email inbox. Get all the top news and sports from the baltimoresun.com.
The bar counsel of the state’s Attorney Grievance Commission, which upholds the rules of professional conduct, filed a petition Jan. 26 recommending that Murphy be named the conservator of the Angelos firm.
According to the petition by Bar Counsel Lydia E. Lawless, Murphy will be paid “at a reduced hourly rate of $775,” and may be assisted by other Zuckerman Spaeder attorneys and staff at hourly rates ranging from $360 to $775, billed to Peter Angelos and/or his estate.
The petition noted that Angelos was admitted June 15, 1961, to the bar and was the sole owner of his firm. He had built the practice into a powerhouse, at one point litigating the nation’s largest-ever asbestos trial. The wealth he amassed allowed Angelos to lead a group of investors in buying the Orioles in 1993. He remains the majority owner of the team.
The Angelos firm was also selected by the state to sue tobacco companies to recoup Medicaid money spent treating ailing smokers, which led to a $4 billion settlement. In more recent years, however, as asbestos suits have waned, the firm has shrunk in size.
On Tuesday, Truffer granted the petition, saying “unless a conservator is appointed, immediate, substantial, and irreparable harm may result to Mr. Angelos’ and the firm’s clients.”
Maryland allows for a conservator to be appointed under certain circumstances, such as when an attorney becomes incapacitated.
Murphy will now be given access to the firm’s offices to inventory its files and take control of its bank accounts. Among his powers are to assist clients in finding new attorneys, delegate tasks to attorneys and staff at both the Angelos firm and his own, and, with the court’s approval, sell the practice. He can also hire accountants and other advisers to determine whether the law firm should be sold or wound down.
Comments are closed.