JCPenney Tells Court Jackson Walker Must Disgorge Bankruptcy Fees

Rather than making necessary disclosures required after learning of the romantic relationship between a former Jackson Walker bankruptcy partner and a then-sitting bankruptcy judge in Houston, the law firm “worked to circle the wagons” to protect itself from the fallout, JCPenney has alleged in a recently-filed complaint. 

The 18-page lawsuit seeking to claw back about $1.1 million in bankruptcy fees, along with other damages, was filed Tuesday in the bankruptcy court for the Southern District of Texas, Corpus Christi Division and brings claims for disgorgement for failure to make bankruptcy disclosures, breach of fiduciary duty and negligence.