Arthur Richenthal, 92, Energetic N.Y. Lawyer

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The New York Sun

Arthur Richenthal died at the age of 92 of a heart attack on October 11, after a full day at work, an evening at the gym, and dinner with his family. Until his last breath, he did what he had done for decades: pursue the practice of law in a manner almost inconceivable for modern lawyers.

Law is now dominated by large firms and specialized attorneys, but Richenthal handled a remarkably broad range of matters. In recent years, cases included the successful resolution of a major intellectual property case and real estate and commercial transactions big and small, including one of the largest death settlements stemming from the destruction of the World Trade Center.

The breadth of his legal practice was the result of an upbringing in New York City that was classic in its hurdles and its opportunities. Born May 31, 1914, in the Bronx, he was one of the many success stories to come through the furnace of City College. When his father died and he needed to support his mother, he was permitted to skip school (for a job at Junior’s) and merely take exams, although, because he could not contribute in class, the job came at the cost of lower grades.

Unable even to interview at any of the major New York law firms after graduating from Harvard Law School because of their restrictions on hiring Jews, he created his own firm and its scope — his scope — steadily expanded over time. Clients entrusted their lives to his care.

The service that benefited the greatest number of people, however, was the result of litigation with the city and state of New York. In 1975, Richenthal agreed to represent a tiny financial institution, the Flushing National Bank, which had a mere $33 million in deposits but had a $5 million investment in an asset that had become increasingly dodgy: New York City bonds. The city’s finances at the time were in a mess, but in a classically flawed political fix, the state was threatening to pass a law placing a moratorium on debt repayment and the large banks, under tremendous pressure, had been rolling over whatever debt that they had been unable to dump before the full extent of the crises was well known.

Forcing the city to face reality fell to the Flushing National Bank. Richenthal sued to prevent the moratorium, saying it violated “the responsibility and pledge of faith” that had been made to note holders.

Merely the threat of this tiny suit caused big ripples to flow. The city could not meet its repayment. President Ford initially demurred at a bailout, prompting the famous Daily News headline “Ford to City: Drop Dead” and possibly throwing the national election to President Carter. Finally, the painful, needed process of New York’s fiscal healing began.

Richenthal won his case in court, which caused much angst for city officials. At the time, he was quoted defending his action: “It will reinstate their [the city’s] integrity in the credit markets, saving billions of dollars of interest in the future.”

This was an inflammatory opinion at the time but it has long since been proved true. In recalling the events, Richenthal said the head of the Flushing National Bank was so delighted with the result that he framed Richenthal’s bill and hung it over his desk. Its symbolic value as a paean to fiscal responsibility, however, went only so far. The bill, Richenthal said, was never paid.


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