This week, Chief U.S. District Judge Alia Moses of the Western District of Texas gave Jackson Walker and the U.S. Trustee’s office until July 15 to let her know how attempts to mediate the multimillion-dollar fee dispute are going.
“Upon conclusion of mediation, the parties are ordered to file a joint notice informing the court of the results,” the judge wrote in the July 7 order. “If a settlement is not reached by this deadline, the court will set this case for trial.”
The U.S. Trustee, referred to as the watchdog of the bankruptcy system, is attempting to claw back millions in fees awarded to Jackson Walker in 33 bankruptcy cases in which David Jones, a former Southern District of Texas bankruptcy judge, served as a mediator or judge. Jones resigned the bench after a secret relationship with a former Jackson Walker bankruptcy partner, Elizabeth Freeman, was publicly reported. Freeman had left the firm before that news broke.
Jackson Walker and the U.S. Trustee filed notice with the court May 30 that they intended to participate in mediation between June 16 and July 1.
The decision by Jackson Walker to mediate came nine days after Judge Moses, who was appointed to oversee the dispute, told the lawyers during a hearing that “there is no doubt” that certain Jackson Walker lawyers knew about the unethical relationship between Freeman and Jones.
Judge Moses told the lawyers that she is “tired of the games” and said she is losing patience.
“Sanctions are going to start coming,” she said.
Lawyers for Jackson Walker have repeatedly claimed that they did not know about the relationship because Freeman lied to them throughout by claiming that the romantic involvement had ended.
Judge Moses’ Monday order came after counsel for Jackson Walker filed a demand for a jury trial on July 3.
“Jackson Walker makes this request for a jury trial in response to the Court Clerk’s notice that if the case is not settled by July 15, 2025, the Court intends to set it for a jury trial,” the filing reads. “Jackson Walker intends to continue mediation and hopes the case can be settled within the deadline set by the Court. This request for a jury trial is intended not to replace mediation but only to inform the Court of Jackson Walker’s desire for a jury trial if mediation is not successful.”
Jackson Walker is represented in the litigation by Jason Boland, William Greendyke, Julie Goodrich Harrison and Maria Mokrzycka of Norton Rose Fulbright and Rusty Hardin, Leah Graham and Emily Smith of Rusty Hardin & Associates.
The U.S. Trustee is represented by Millie Aponte Sall, Vianey Garza and Alicia Barcomb.
The case is In re: Professional Fee Matters Concerning the Jackson Walker Law Firm, SDTX, Case No. 4:23-cv-4787-AM.
Mark Curriden contributed to this report.