Chief U.S. District Judge for the Western District of Texas, Alia Moses, has taken control of the 34 bankruptcy cases where the U.S. Trustee is seeking to claw back millions in fees awarded to Dallas-based Jackson Walker.
In a seven-page order issued Wednesday, Chief Judge Moses granted a request from the U.S. Trustee, the watchdog of the bankruptcy system, to move the cases out of the courtroom of Chief U.S. Bankruptcy Judge for the Southern District of Texas, Eduardo V. Rodriguez. The trustee is trying to recover fees in cases that were overseen by former judge David Jones, who resigned the bench after a previously secret romantic relationship with a former Jackson Walker bankruptcy partner, Elizabeth Freeman, was publicly reported. The cases the U.S. trustee is targeting are those where Jones served as judge or mediator.
“The court knows of no reason to think that the bankruptcy judges, after Nov. 15, 2023, who have overseen these proceedings thus far have done so other than ably and honorably, to the highest standard of judicial professionalism,” her order reads. “No party claims otherwise. This memorandum order and opinion should not be read to cast doubt on their service or on any order or decision they have made in these proceedings to date.”
“This unique case nevertheless requires stiff measures. The need to reestablish public trust and confidence in the court system alone impels withdrawal in this highly unusual case.”
She wrote that she is “thoroughly acquainted with the facts” of the cases and is already overseeing some cases that “arise from the same patten of conduct,” therefore, “uniformity, economy and expediency all weigh in favor of withdrawal.”
The cases had been set for a two-week trial to begin May 12.
Chief Judge Moses’ order also set a status conference “to discuss what procedural avenues these cases should follow moving forward — specifically, which issues are best decided by this court or the bankruptcy court.”
Jackson Walker is represented by Jason L. Boland, William R. Greendyke, Julie Harrison, Maria Mokrzycka, Paul Trahan and Emily D. Wolf of Norton Rose Fulbright and Rusty Hardin, Leah M. Graham, Jennifer Brevorka and Emily Smith of Rusty Hardin & Associates.
The U.S. Trustee is represented by Vianey Garza, Alicia L. Barcomb, W. Joel Charboneau and Brian P. Thill of the U.S. Department of Justice.
The case number in the bankruptcy fee case is 23-00645.