Jackson Walker Pushes for Dismissal from ‘Fiction’ ‘Labeled as a Complaint’ in Judge Jones-Related RICO Suit

On Wednesday, Jackson Walker ripped apart the racketeering and fraud lawsuit former Bouchard Transportation Company CEO Morton Bouchard III had lodged against it in February after the secret romance between former bankruptcy judge David Jones and former Jackson Walker bankruptcy partner Elizabeth Freeman came to light. “Mr. Bouchard’s response fails to solve the standing and pleading defects that plague the fiction his counsel has labeled as a complaint,” the firm told the court, doubling down on arguments it first made in May when it sought dismissal of the lawsuit.

August 22, 2024 Michelle Casady

Transcript of Show Cause Hearing Released in Judge Jones Case

On Wednesday morning, a redacted version of a transcript from a recent show cause hearing — in the litigation to determine whether Jackson Walker should be forced to return about $13 million in legal fees earned in bankruptcy cases before former Judge David Jones — was made publicly available.

August 21, 2024 Michelle Casady

Judge Slams Ex-Judge Jones but Dismisses Fraud Case in Houston Bankruptcy Romance Scandal

With “some consternation,” a federal judge has dismissed a lawsuit filed by a former McDermott shareholder who claims that he was defrauded out of his ownership stake in the company through a conspiracy that included former Houston Bankruptcy Judge David Jones, his secret girlfriend Elizabeth Freeman, her former law firm Jackson Walker and mega-corporate law firm Kirkland & Ellis. “The Court takes no pleasure in this result. The Plaintiff’s allegations, if true, cast doubt on the integrity of numerous high-profile bankruptcy cases. Litigants should not have to wonder whether the judge overseeing their case stands to gain from ruling against them: but in Jones’s courtroom, they did.”

August 16, 2024 Mark Curriden

Ex-Judge Jones Ordered to Ethics Training After Show Cause Hearing

Nine days after Southern District of Texas Chief Bankruptcy Judge Eduardo Rodriguez conducted a show cause hearing in a sealed courtroom, he has determined that his former colleague, David Jones, acted in bad faith when he consented to an interview with lawyers from Jackson Walker and Rusty Hardin’s firm. The ruling comes in a case where Judge Rodriguez must determine whether Jackson Walker should be forced to return about $13 million in legal fees earned in bankruptcy cases before former Judge David Jones.

August 16, 2024 Michelle Casady

SDTX Chief Bankruptcy Judge Seals Show Cause Hearing in Judge Jones, Jackson Walker Case   

At the daylong hearing, Chief Judge Eduardo Rodriguez also denied a request to subpoena four years of phone and text logs from former bankruptcy Judge David Jones’ government-issued cell phone that the requesting party said was intended to investigate whether any ex parte communications had taken place between Jones and the attorneys who appeared before him. Chief Judge Rodriguez said he plans to quickly decide whether to partially or fully unseal a transcript and audio of the sealed portion of Wednesday’s hearing.

August 7, 2024 Michelle Casady

SDTX Chief Bankruptcy Judge Considering Contempt Proceedings, Sanctions Against Judge Jones, Jackson Walker

Chief Bankruptcy Judge Eduardo Rodriguez of Houston has ordered his former colleague, ex-bankruptcy Judge David Jones, and law firm Jackson Walker to appear in his court this Wednesday to explain why they apparently went behind his back and against his prior order to conduct a private interview regarding facts involving the judge’s secret romantic relationship with former Jackson Walker partner Elizabeth Freeman.

Chief Judge Rodriguez issued a show-case order Monday stating that the U.S. Trustee’s Office has informed the court that such an interview recently took place and demanded that Judge Jones and lawyers for Jackson Walker appear Wednesday at 8:30 a.m. to explain their reasons and face possible sanctions.

“Jackson Walker, its counsel and David R. Jones and his counsel must be prepared to explain to this court whether in fact the allegations raised in the U.S. Trustee’s notice regarding Jones’s interview by Jackson Walker’s counsel did in fact occur and if so explain to this court the details of such interview,” the chief judge wrote in a blistering three-page order.

At the same time, the plan administrator in the JC Penney bankruptcy is seeking to subpoena cell phone records of Judge Jones to see if he was secretly sending text messages to Freeman during court proceedings.

August 6, 2024 Mark Curriden

Conn’s Taps Sidley to Lead Bankruptcy

The Texas discount furniture and appliance retailer filed for Chapter 11 bankruptcy protection Tuesday in the Southern District of Texas citing more than $1 billion in debts.

July 24, 2024 Mark Curriden

SDTX Swears in New Bankruptcy Judge

U.S. Chief Bankruptcy Judge Eduardo Rodriguez officially administered the oath Tuesday to former Weil, Gotshal & Manges partner Alfredo Perez to become the newest bankruptcy judge in the Southern District of Texas. In an order signed July 16 by Chief Judge Rodriguez, Judge Perez will immediately join the Southern District’s complex case panel, which handles larger corporate Chapter 11 bankruptcies. Judge Perez, who will have chambers in Galveston, replaces former Houston Bankruptcy Judge David Jones.

July 18, 2024 Mark Curriden