Jackson Walker, U.S. Trustee Reach Agreement Resolving Objections to Bankruptcy Fee Settlements

Since about 5 p.m. Tuesday — Day 1 of a three-day hearing on approval of nine settlements with former bankruptcy clients totaling roughly $4 million — Jackson Walker’s counsel and the U.S. Trustee had been working, at the judge’s direction, on reaching a compromise on the settlement language. 

At the heart of the matter was the effect and scope of the language in the settlement agreements. The U.S. Trustee maintained the settlements are an attempted end-run 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 partner Elizabeth Freeman. The bankruptcy watchdog jumped into the litigation after a once-private romantic relationship between Jones and Freeman was publicly reported, leading to Jones’ resignation from the bench.