Paula S. Beran, Esquire (Va. Bar No. 34679) 

Tavenner & Beran, PLC 

20 North Eighth Street, Second Floor 

Richmond, Virginia 23219 

Telephone: (804) 783-8300 

Telecopy: (804) 783-0178 

Counsel for Lynn L. Tavenner, Chapter 7 Trustee

UNITED STATES BANKRUPTCY COURT 

EASTERN DISTRICT OF VIRGINIA 

Richmond Division 

In re: 

LeClairRyan, PLLC,1 

Debtor 

Case No. 

19-34574-KRH 

Chapter

7 

ORDER CLARIFYING THE ORDER AUTHORIZING 

THE RETENTION AND EMPLOYMENT OF QUINN 

EMANUEL URQUHART & SULLIVAN, LLP AS SPECIAL COUNSEL 

This matter came before the Court upon the Trustee’s Supplement to Application to Retain 

and Employ Quinn Emanuel Urquhart & Sullivan, LLP as Special Counsel (the “Supplemental 

Application”)[ECF 1533]. The Court having reviewed (i) the Supplemental Application, (ii) the 

Quinn Retention Application,2 (iii) Verified Statement (and its supplement) of Erika Morabito 

pursuant to Fed. R. Bankr. P. 2014(a) (collectively, the “Morabito Statement”), a partner in the 

law firm of Quinn Emanuel Urquhart & Sullivan, LLP (“Quinn Emanuel”), (iv) the Declaration of 

Lynn L. Tavenner, Chapter 7 Trustee (the “Tavenner Declaration”); and the Court having entered 

the Interim Order Authorizing the Supplemental Retention and Employment of Quinn Emanuel 

Urquhart & Sullivan, LLP as Special Counsel (the “Interim Order”) [ECF 1549], and being fully 

advised of the premise and having determined that the legal and factual basis set forth in the 

1

 The principal address of the Debtor as of the petition date was 4405 Cox Road, Glen Allen, Virginia 

23060, and the last four digits of the Debtor’s federal tax identification number are 2451.

2

 Capitalized terms not otherwise defined herein shall have the meanings given to them in the Supplemental 

Application. 

Case 19-34574-KRH Doc 1568 Filed 09/02/22 Entered 09/02/22 07:34:00 Desc Main

Document Page 1 of 6
2 

Supplemental Application, the Quinn Retention Application, the Morabito Statement, and the 

Tavenner Declaration establish just cause for the relief granted herein. 

THE COURT HEREBY FINDS THAT: 

A. The Court has jurisdiction over this matter pursuant to 28 U.S.C. §§ 157 and 1334. 

B. This is a core proceeding pursuant to 28 U.S.C. § 157(b)(2). 

C. Notice of the Supplemental Application was sufficient under the circumstances. 

D. The continued retention and employment of Quinn Emanuel in accordance with 

this Order is in the best interest of the Estate. 

E. As a result of the entry by the United States District Court of the Eastern District 

of Virginia on August 8, 2022 of various orders dismissing the Judicially Mediated Global 

Settlement Appeal and the Premature Seal Appeal, the Supplemental Representation is no longer 

necessary in so far as this Order addresses all necessary items to be made nunc pro tunc to July 

11, 2022 to the Order Authorizing the Retention and Employment of Quinn Emanuel Urquhart & 

Sullivan LLP as Special Counsel entered on June 28, 2021 (the “Quinn Retention Order”) [ECF 

937]. 

F. The work that the Trustee requested in writing for Quinn Emanuel to undertake, as 

described in paragraph 23 of the Supplemental Application, to protect and preserve value for the 

Estate while the Trustee conducted extensive due diligence on what was in the Estate’s best interest 

to address the Judicially Mediated Global Settlement Appeal (the “Preservation Services”) 

constitutes a Non-Contingency Matter for which Quinn Emanuel is entitled pursuant to the Quinn 

Retention Order to charge its standard hourly rates, subject to a ten (10) percent discount. 

G. This Order shall constitute the final order referenced in the Interim Order. IT IS 

HEREBY ORDERED THAT: 

Case 19-34574-KRH Doc 1568 Filed 09/02/22 Entered 09/02/22 07:34:00 Desc Main

Document Page 2 of 6
3 

1. The Quinn Retention Order is clarified as set forth herein nunc pro tunc to July 11, 

2022, and any other request for the Supplemental Representation is hereby deemed withdrawn. 

2. In connection with the Preservation Services provided on July 11, 2022 and 

continuing through and including August 8, 2022, Quinn Emanuel is entitled pursuant to the Quinn 

Retention Order to charge the Estate its standard hourly rates, subject to a ten (10) percent discount, 

and same shall be included as such in any future fee application that may be filed by or on behalf 

of Quinn Emanuel. Approval of Quinn Emanuel’s fees for the Preservation Services shall be 

subject to further order of the Court after appropriate notice and application which application may 

be filed on or after September 7, 2022. 

3. Except as otherwise set forth herein, beginning on August 9, 2022, Quinn Emanuel 

shall no longer be compensated on an hourly basis for Preservation Services and any such services 

provided thereafter shall be in connection with the Contingency Fee delineated in the Quinn 

Retention Order as found in the engagement letter attached to the Quinn Retention Application 

(the “Quinn Engagement Letter”), except as clarified hereafter.3

 Specifically, of the amount 

received by the Estate at Closing, Quinn Emanuel shall be entitled to receive $6,247,500, which 

represents 35% of the Total Settlement Payment less the Improvident Payment.4

 From the Second 

Defendants’ Payment received by the Estate, Quinn Emanuel shall be entitled to receive 50% 

($1,575,000) of the total Improvident Payment ($3,150,000)). From the Third Defendants’ 

3

 Notwithstanding anything herein, this Order does not preclude Quinn Emanuel from also seeking 

approval of its fees and costs on an hourly basis for all time and expenses it incurred performing work related to the 

Supplemental Application that is not otherwise defined as Preservation Services. This request may include, but is 

not limited to, preparation and/or review of all pleadings related to the Supplemental Application, negotiations 

regarding the Supplemental Application, addressing or resolving any formal or informal objections to the 

Supplemental Application, and preparation for and/or attendance at any hearings conducted by the Court related to 

the Supplemental Application regardless of the date these services were provided by Quinn Emanuel. 

4

 For clarification, pursuant to the Judicially Mediated Global Settlement, the Total Settlement Payment 

less the Improvident Payment is an amount of $17,850,000. 

Case 19-34574-KRH Doc 1568 Filed 09/02/22 Entered 09/02/22 07:34:00 Desc Main

Document Page 3 of 6
4 

Payment received by the Estate, Quinn Emanuel shall be entitled to receive the remaining 50% of 

the total Improvident Payment ($1,575,000), less thirty-five percent of all Costs and Expenses 

(with “Cost and Expenses” being costs and expenses paid by the Estate (and/or by Quinn 

Emanuel on behalf of the Estate) pursuant to, and consistent with, those costs and expenses 

described and/or set forth in the Quinn Engagement Letter). Notwithstanding the foregoing or 

anything in the Quinn Engagement Letter to the contrary, any amounts paid to Cozen O’Connor 

shall not be included as Costs and Expenses. Amounts paid to Quinn Emanuel on an hourly basis 

(solely in connection with the Preservation Services), however, shall be included as Costs and 

Expenses to be deducted from the amounts due and owing to Quinn Emanuel from the Third 

Defendants’ Payment, as described herein. Should the Estate ultimately not receive at least 

$17,850,000 from the Defendants pursuant to the Judicially Mediated Global Settlement and

Quinn Emanuel receives more than 35% of the Net Amount (with “Net Amount” being the amount 

paid to the Estate by the Defendants less Costs and Expenses), Quinn Emanuel shall disgorge any 

amount it received in excess of 35% of the Net Amount. 

4. As stated in the Quinn Retention Order at ¶ 8, Foley’s rights to seek compensation 

for its prior work are reserved pending further order of this Court. The payment of the amounts 

to Quinn Emanuel set forth in this Order shall not limit, preclude, or impact in any way Foley’s 

right to seek recovery from Quinn Emanuel by providing requisite notice of its fee application at 

the appropriate time. Moreover, nothing herein shall act as a bar for the Trustee, Quinn Emanuel, 

or the UST to oppose any request by Foley for fees related to this Supplemental Application or 

any other fees paid (or sought to be paid) to Foley either by Quinn Emanuel or the Estate during 

the pendency of this Case. Further, no rights regarding the apportionment of any professional fees 

Case 19-34574-KRH Doc 1568 Filed 09/02/22 Entered 09/02/22 07:34:00 Desc Main

Document Page 4 of 6
5 

in this case, are waived by Foley, Quinn Emanuel, or the Trustee, and all rights are expressly 

reserved. 

5. Unless specifically modified herein, the Quinn Retention Order remains in full 

force and effect. 

6. This Court shall retain exclusive jurisdiction over this Order, as well as all matters 

related thereto. 

Entered: 

UNITED STATES BANKRUPTCY JUDGE 

I ask for this: 

/s/ Paula S. Beran 

Paula S. Beran, Esquire (VSB No. 34679) 

Tavenner & Beran, PLC 

20 North 8th Street, Second Floor 

Richmond, Virginia 23219 

Telephone: (804) 783-8300 

Facsimile: (804) 783-0178 

 

Counsel for Lynn L. Tavenner, Chapter 7 Trustee 

Seen and not objected to: 

 

/s/ Kathryn R. Montgomery (signature authority via 8/19/22 email) 

Kathryn R. Montgomery, Esquire 

Shannon F. Pecoraro, Esquire 

Office of the United States Trustee 

701 East Broad Street, Suite 4304 

Richmond, Virginia 23219 

(804) 771-8004 

Office of the United States Trustee 

Sep 1 2022 /s/ Kevin R Huennekens

Entered On Docket: Sep 2 2022

Case 19-34574-KRH Doc 1568 Filed 09/02/22 Entered 09/02/22 07:34:00 Desc Main

Document Page 5 of 6
6 

CERTIFICATION 

I hereby certify under Local Rule 9022-1 that the foregoing proposed Order was served 

on all requisite parties and has been endorsed by all necessary parties. 

/s/ Paula S. Beran 

Paula S. Beran, Esquire 

Service List of Entered Order 

Kathryn R. Montgomery, Esquire 

Shannon F. Pecoraro, Esquire 

Office of the United States Trustee 

701 East Broad Street, Suite 4304 

 Richmond, Virginia 23219

Paula S. Beran, Esquire 

Tavenner & Beran PLC 

20 North Eighth Street, Second Floor 

Richmond, Virginia 23219 

Case 19-34574-KRH Doc 1568 Filed 09/02/22 Entered 09/02/22 07:34:00 Desc Main

Document Page 6 of 6