For most of a two-and-a-half-hour scheduling conference Tuesday in the Jackson Walker bankruptcy fee case, the parties sat in silence while Chief U.S. Bankruptcy Judge Eduardo V. Rodriguez drafted and signed a pair of orders governing when the parties will be back for a hearing and when trial in the case will begin.
The hearing came two days after the U.S. Trustee and the law firm told the court they had reached a $15 million settlement that would end the bankruptcy watchdog’s efforts to claw back millions in fees earned in 34 cases involving former Houston bankruptcy judge David Jones and former Jackson Walker bankruptcy partner Elizabeth Freeman. The U.S. Trustee got involved in the litigation after the once-private romantic relationship between Jones and Freeman was publicly reported, which also led to Jones’ resignation from the bench.
Counsel for both parties had always appeared cordial in prior hearings in the case, but the greetings exchanged in the moments before Tuesday’s hearing began seemed especially upbeat.
Norton Rose Fulbright’s Jason Boland, the lead lawyer for Jackson Walker, kicked things off by reminding the court of the “progress” and “momentum” both sides had detailed in a prior joint motion filed with the court about two weeks before the settlement was reached. The joint motion had sought an extension of deadlines in the case as the parties worked toward settlement. Chief Judge Rodriguez denied that request, writing that while he appreciated the efforts to reach a deal, “the circumstances presented do not warrant further delay of the deadlines” in the case.
On Tuesday, Boland told the court the parties’ July 17 joint request had “left the court in a bit of a vacuum” as it related to just how close the two sides were to a deal. Soon, he said, the parties would be filing a motion for approval of a consent order and he asked the court to allow the two sides to “utilize the next couple of months” to iron out those final details.
Chief Judge Rodriguez then asked to hear from Millie Sall of the U.S. Trustee’s office.
“We are pleased by the progress that’s been made and achieved,” she said, adding she was confident the parties would soon get the case “to the finish line.”
“A parallel proceeding would distract” from those efforts to finalize the deal, she said.
Chief Judge Rodriguez said he appreciated those comments, but stood firm on pushing the case forward, vowing to set a hearing for the standing arguments and get a trial date on the books.
“And that’s the end of it,” he said. “This trial is not going to be delayed.”
In the two orders issued after Tuesday’s hearing, Chief Judge Rodriguez set the hearing on Jackson Walker’s argument that the U.S. Trustee does not have standing to obtain the relief it seeks via the vacatur motions filed in the various affected cases for Sept. 9.
“Attendance by all parties is required,” the order reads. “Each party must have a representative present with full settlement authority. Primary counsel for the parties must appear in person.”
And trial on the merits on the U.S. Trustee’s vacatur motions was set for Jan. 19. The parties told the court Tuesday trial should take about four weeks.
Jackson Walker is also represented by Julie Harrison, William R. Greendyke and Maria Mokrzycka of Norton Rose Fulbright, and Rusty Hardin and Emily Smith of Rusty Hardin & Associates.
The U.S. Trustee is also represented by Laura Steele, Joel Charboneau and Vianey Garza of the Department of Justice.
The case number is 4:23-cv-04787.