Jackson Walker has reached a second settlement in a case where former judge David Jones awarded it fees for work the firm did in a bankruptcy case.
The settlement comes in one of the more than 30 cases where the U.S. Trustee is trying to claw back millions in fees awarded to Jackson Walker in cases where Jones served as judge or mediator. Those efforts began after a previously undisclosed secret romantic relationship between Jones and then-Jackson Walker bankruptcy partner Elizabeth Freeman became public. Jones resigned his bench in October 2023, and Freeman left the firm in December 2022.
In paperwork filed with the court Monday, the chief restructuring officer for 4E Brands North America, David Dunn, told U.S. Bankruptcy Judge Christopher M. Lopez that the Dallas-based law firm has agreed to pay back $617,000 of what it was awarded for work on the bankruptcy case.
“On March 5, 2025 JW and the plan agent participated in a mediation regarding the allegations in the U.S. Trustee’s motion, as joined by the plan agent, and the plan agent’s claims (or potential claims) against JW with Judge Royal Ferguson [sic] (Ret.) and Judge Gary Feess (Ret.) serving as mediators,” the 11-page motion states. “As a result thereof, JW and the plan agent reached a settlement that fully and completely settles and resolves the disputes between them on the terms and conditions set forth in the settlement agreement.”
According to court records, former judge Jones had issued an order Dec. 29, 2022, approving an award of $866,726.31 in fees and expenses to Jackson Walker for work the firm did on the bankruptcy. The settlement amount is about 71 percent of that total.
On Friday, Jackson Walker reached a $783,000 settlement in the Basic Energy Services bankruptcy case. Former judge Jones entered an order Sept. 29, 2022, awarding Jackson Walker $1,543,432.34 in fees for its work on the Basic Energy Services bankruptcy. The settlement is for 50.7 percent of that award.
The two-week trial where the U.S. Trustee will be arguing to claw back millions in fees from Jackson Walker is currently slated to begin May 12 before Chief U.S. Bankruptcy Judge Eduardo V. Rodriguez in Houston.
Counsel for Dunn — Aaron M. Guerrero, Ken Green and Bryan Prentice of Bonds Ellis Eppich Schafer Jones — did not immediately respond to an email seeking comment late Tuesday afternoon.
The case number in the 4E Brands case is 22-50009.
In the still-pending proceeding where the U.S. Trustee is attempting to claw back millions in fees, 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.