Chief U.S. Bankruptcy Judge Eduardo V. Rodriguez this week rejected a joint request from Jackson Walker and the U.S. Trustee to extend deadlines in the cases where the bankruptcy watchdog is attempting to claw back millions in fees awarded to the law firm.
The U.S. Trustee wants to vacate more than $20 million in fees awarded to the firm in 34 cases involving former Houston bankruptcy judge David Jones and former Jackson Walker bankruptcy partner Elizabeth Freeman. The U.S. Trustee got involved in the litigation after the once-private romantic relationship between Jones and Freeman was publicly reported, which also led to Jones’ resignation from the bench.
In a five-page joint motion filed last week, Jackson Walker and the U.S. Trustee told the court that ever since they successfully negotiated a joint stipulation at the end of a three-day hearing in March, the parties have built on that progress “and engaged in substantive settlement discussions to potentially resolve the U.S. Trustee’s vacatur motions.” Earlier this month, Chief Judge Rodriguez recommended nine settlements between the firm and former bankruptcy clients, totaling about $4.7 million, be approved
The settlement negotiations, according to the joint emergency motion, have been “ongoing and frequent” and included a two-day meeting in San Antonio at the end of June where “material progress was made.”
“Following that in-person meeting, the parties have held weekly video conferences — the most recent of which was on July 16 — and represent that progress continues to be made,” the motion reads. “While the parties have not yet reached a complete resolution, each is hopeful that, with additional time, an agreement may be reached that would avoid the need for this court, the parties, and other parties in interest to expend considerable time and resources litigating the merits of the U.S. Trustee’s vacatur motions, including related issues like the standing motions.”
The emergency motion asked the court to hit pause on deadlines for 60 days to allow for the “active, ongoing settlement discussions” to continue.
On Monday, in a five-page order, Chief Judge Rodriguez said no.
“While an extension may be granted when the parties have actually finalized a settlement and require time to draft and file the necessary closing documents, ongoing and uncertain negotiations do not satisfy this standard,” he wrote. “And while the Court appreciates the movants’ efforts to reach a negotiated resolution and recognizes the potential benefits of a global settlement, the Court finds that the circumstances presented do not warrant further delay of the deadlines established in the July 14, 2026 order.”
Chief Judge Rodriguez outlined four reasons why he was denying the motion:
- The case has been pending for 31 months, which he said has provided the parties with “ample opportunity” to conduct settlement discussions;
- “Judicial economy and the efficient administration of justice require that this matter move forward to trial”;
- The existence of the motions where Jackson Walker has argued the Trustee has no standing to pursue the relief it is seeking “does not constitute good cause to extend deadlines for the entire case”; and
- While the parties told the court no party-in-interest is opposed to the emergency motion, “the absence of opposition does not, by itself, establish good cause for an extension.”
Jackson Walker is represented by Jason Boland, Julie Harrison, William R. Greendyke and Maria Mokrzycka of Norton Rose Fulbright, and Rusty Hardin and Emily Smith of Rusty Hardin & Associates.
The U.S. Trustee is represented by Laura Steele, Millie Sall, Joel Charboneau and Vianey Garza of the Department of Justice.
The court has set a non-evidentiary hearing scheduling conference in the case to take place Aug. 4.
The case number is 4:23-cv-04787.