Johnson & Johnson, hoping the third time’s a charm for solving its multibillion-dollar talc baby powder litigation fiasco, filed for Chapter 11 bankruptcy Friday for its Red River Talc subsidiary in Houston. The case featuring the highly controversial Texas Two-Step procedure has been assigned to Southern District of Texas Bankruptcy Judge Christopher Lopez. Two Texas lawyers expected to play key roles for the debtors in the case are Jones Day partner Gregory Gordon of Dallas and Porter Hedges partner John Higgins of Houston.
Judge Isgur Refers Jackson Walker for Possible Disciplinary Proceedings, Recuses in Bankruptcy Fee Case
In the two-page order, Judge Marvin Isgur also recused himself from all disputes “between the United States Trustee and Jackson Walker that relate to alleged non-disclosure issues by Jackson Walker.” The order was issued in the Chapter 11 bankruptcy case of Altera Infrastructure Project Services, in which former judge David Jones acted as a mediator and Jackson Walker represented a party.
Veteran Bankruptcy Attorney Marc Taubenfeld Joins Munsch Hardt
Taubenfeld was previously at McGuire, Craddock & Strother, where he practiced for more than 25 years.
Judge Schedules Deposition of Ex-Judge Jones, Sorts Out Discovery Dispute Between Jackson Walker, U.S. Trustee
During a hearing Tuesday Chief U.S. bankruptcy Judge Eduardo Rodriguez brushed aside scheduling concerns the parties raised and ordered that Albert Alonzo, who served as case manager to former Judge David Jones for more than a decade, be deposed on Sept. 18. Jones, who resigned his office after public revelations that he had a secret romantic relationship with a Jackson Walker bankruptcy partner, will be deposed in the same courtroom, under the supervision of Chief Judge Rodriguez, the following day.
Court: U.S. Trustee May Depose Former Bankruptcy Judge on Secret Romantic Relationship
Former Houston Bankruptcy Judge David Jones, who oversaw significant corporate bankruptcies over the past decade, can now be questioned under oath about his undisclosed personal relationship with Elizabeth Freeman, then a partner at Jackson Walker, which earned millions in legal fees from cases the judge presided over.
The ruling, made by U.S. Chief Bankruptcy Judge Eduardo Rodriguez over the weekend, allows the U.S. Trustee to depose both Jones and his former case manager, Albert Alonzo, regarding the details of this secret relationship. Additionally, they may be compelled to provide personal documents related to the relationship, but this process will occur under the direct supervision of the chief judge.
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.
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.
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.”
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.
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.
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