The regulation agency, which specializes in healthcare malpractice, Social Security, class action, mass tort and legal protection, has 4 attorneys listed on its site, such as principal Brian Dailey. It was started in 1927 in Iowa and relocated to metro Detroit in 1992, with more places of work in Chicago and Indianapolis.
Dailey did not return a concept for remark, nor did Scott Kwiatkowski, legal professional at Southfield-based mostly Goldstein Bershad & Fried Computer representing Dailey’s business in the personal bankruptcy situation.
The financial problems for Dailey Law started with household concerns and a most cancers diagnosis, which was exacerbated by liquidity shortcomings brought on by the COVID-19 pandemic, according to the bankruptcy address sheet.
Then in 2021, the legislation organization learned that a previous worker allegedly “wrongfully diverted” $600,000 in settlement proceeds. The organization was requested to pay out $600,000 into Wayne County Circuit Court docket in connection to the settlement from about 5 years in the past, the filing reported. Not able to pay the sum, the company was appointed a receiver.
Dailey Legislation filed a lawsuit previously this 12 months from insurance coverage corporation Travelers Indemnity Co. in an try to recoup the $600,000 that was allegedly embezzled. According to that lawsuit, Dailey contracted Vacationers in 2010 to protect in opposition to industrial losses right before expanding its insurance protection to include things like “staff dishonesty” in 2019.
In February 2021, just one of the firm’s employees give up abruptly, and in the pursuing months the firm found the employee embezzled $600,000 by diverting settlement checks, the lawsuit says. The previous employee, who is not named in the court files, denied the allegations and submitted a counter complaint.
The dispute involving Dailey Regulation and the insurance enterprise centers on the insurance plan, which boundaries $25,000 for each reduction. The business claims that it was target of dozens of losses, though the insurance policies enterprise argues that it is only on the hook for just one $25,000 payment.
The law firm assignments that it will have to have to spend $525,800 in the next 3 months to stay clear of “instant and irreparable harm.” Its accounts receivable overall $636,500, and the business has 36 cases of unknown price in litigation or pre-lawsuit.
The law firm’s most significant lenders listed are:
- Utah-based mostly On Deck Money Inc.: $189,269
- U.S. Smaller Company Administration: $147,344
- Detroit-based mostly Honigman LLP: $80,000
- Belleville-centered Surgical Cash Management: $78,000
One more unrelated, private coverage dispute connected to Dailey is also ongoing. In a lawsuit filed last 12 months by Dailey in opposition to Citizens Insurance Co., Dailey alleges a storm prompted $200,000 in damages to his dwelling in Grosse Pointe Shores and that the insurance plan company wrongfully denied the declare.