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Settlements mount against law firm caught up in bankruptcy judge's secret romance
Settlements mount against law firm caught up in bankruptcy judge's secret romance

Reuters

time15-05-2025

  • Business
  • Reuters

Settlements mount against law firm caught up in bankruptcy judge's secret romance

May 15 (Reuters) - (Billable Hours is Reuters' weekly report on lawyers and money. Please send tips or suggestions to opens new tab) Houston-based law firm Jackson Walker agreed this week to pay $100,000 to one of its former bankruptcy clients, marking its latest proposed payout to resolve claims that it failed to disclose and profited from a romantic relationship between one of its partners and former U.S. Bankruptcy Judge David Jones. The settlement, opens new tab between Jackson Walker and the trustee overseeing the bankruptcy estate of Brilliant Energy, a Houston-based electric utility, is the third such deal the law firm has struck since April. Jackson Walker is already poised to pay back $1.5 million in fees across the three settlements in bankruptcy cases where Jones approved the firm's fee requests while he was in a romantic relationship with Elizabeth Freeman, who was a bankruptcy partner at Jackson Walker until December 2022. A spokesperson for the firm said more settlement deals were in the works, but did not comment further. Brilliant Energy's Chapter 7 trustee Randy Williams did not immediately respond to a request for comment. A spokesperson for the U.S. Trustee, the Justice Department's bankruptcy watchdog, declined to comment. For months, the trustee has been trying to force Jackson Walker to disgorge millions of dollars in legal fees that Jones approved in at least 30 bankruptcy cases filed by the law firm. The proposed settlements require approval by U.S. District Judge Alia Moses in Houston, who began overseeing the case in April. Moses has set a status hearing for May 22. Jones was once the busiest bankruptcy judge in the U.S. and presided over the bankruptcies of JCPenney, Neiman Marcus, Party City and Chesapeake Energy, among many others. He resigned from the bench in October 2023 after admitting to sharing a home with Freeman. The firm has said it was deceived by Freeman into thinking her relationship with Jones had ended in March 2020. After being confronted by Jackson Walker two years later, Freeman admitted that she and Jones had rekindled their relationship, the firm said. A U.S. bankruptcy judge said in September that Jackson Walker knew Freeman was in the relationship and told no one, and instead billed $11 million in fees in cases where Jones was the judge or mediator. After U.S. Bankruptcy Judge Marvin Isgur withdrew an ethics complaint against the firm in February, Jackson Walker said in a statement that "the evidence overwhelmingly demonstrates that Jackson Walker acted responsibly and appropriately at all times under the circumstances." -- Law firms Cotchett Pitre, Robins Kaplan and Susman Godfrey have asked a U.S. judge in Michigan to award an additional $94 million in legal fees, opens new tab for their work on automotive antitrust settlements valued at more than $1.22 billion. The firms said that as of March they had devoted a combined 388,956 hours into pursuing claims that auto parts makers conspired to fix prices on a large variety of products. The new fee request covers legal work since 2019 and would push the firms' total awarded to $363 million. The attorneys said the settlement amount "is believed to be the largest amount ever obtained on behalf of indirect purchasers in the history of U.S. antitrust litigation." -- A U.S. judge in Chicago on Monday approved an unusual nationwide class-action settlement resolving privacy claims against facial recognition company Clearview AI without any immediate and specific monetary payout for victims. The settlement resolves claims that Clearview scraped billions of facial images from the web and sold information without consent, violating an Illinois biometric privacy law. Clearview has denied any misconduct. U.S. District Judge Sharon Johnson Coleman also signed off on the settlement's unique attorney fee award — instead of getting a payout up front, Chicago-based Loevy & Loevy would receive 39.1% share of a theoretical future settlement amount, based on Clearview's value if the company goes public through an IPO or is liquidated through a merger or sale. Coleman held that the 39.1% share is in keeping with "Seventh Circuit caselaw, where courts have routinely provided fee awards of 30% or greater of a common fund." Read more: Amazon, Apple seek legal fees as sanction in US consumer lawsuit Epic Games' Cravath team wins fees in Apple contempt ruling US lobbying firms see early revenue boost in Trump's second term

Former Texas Supreme Court Chief Justice Nathan L. Hecht Joins Jackson Walker
Former Texas Supreme Court Chief Justice Nathan L. Hecht Joins Jackson Walker

Business Wire

time09-05-2025

  • Business
  • Business Wire

Former Texas Supreme Court Chief Justice Nathan L. Hecht Joins Jackson Walker

AUSTIN, Texas--(BUSINESS WIRE)--Jackson Walker is proud to announce that the Hon. Nathan L. Hecht, former Chief Justice of the Texas Supreme Court, has joined Jackson Walker as a partner in our Austin office. Justice Hecht brings to Jackson Walker a distinguished judicial career spanning more than four decades, marked by his unwavering commitment to the rule of law, access to justice, and the modernization of Texas courts. 'We are honored to welcome Chief Justice Hecht to Jackson Walker,' Managing Partner C. Wade Cooper said. 'His legacy of leadership, integrity, and innovation in the Texas judiciary is unmatched. Justice Hecht's experience and vision will be invaluable to our clients and our firm as we continue to serve clients across Texas and around the world.' On his decision to join the Firm, Justice Hecht said, 'I am honored to join Jackson Walker and to work alongside so many talented attorneys who share my commitment to excellence and service. Throughout my career, I have been dedicated to upholding the rule of law and ensuring access to justice for all Texans. I look forward to contributing my experience to the Firm and its clients, and to continuing to advance the legal profession together.' An Unparalleled Judicial Career Justice Hecht's tenure on the Supreme Court of Texas is unparalleled. He served on the Court for 36 years – longer than any other justice in the Court's history – before retiring on December 31, 2024. Justice Hecht led the Court's efforts to expand access to civil legal services for Texans of limited means and oversaw significant revisions to the rules of administration, practice, and procedure in Texas courts. Nationally, he served on the Advisory Committee on Civil Rules of the Judicial Conference of the United States and was the longest-serving president of the Conference of Chief Justices. 'Chief Justice Hecht's deep understanding of the law, commitment to fairness, and dedication to improving the administration of justice have set the standard for all of us,' said partner Charles L. 'Chip' Babcock, who worked alongside Chief Justice Hecht while he served as a member and then Chair of the Supreme Court Advisory Committee. 'I am thrilled to welcome him as a Jackson Walker partner.' Litigation partner David T. Moran added, 'Chief Justice Hecht's arrival is a tremendous asset to our appellate section and the entire Firm. He has seen and done it all over his distinguished career, and he will make us all better.' Before his judicial service, Justice Hecht was a partner in a Dallas law firm, clerked for Judge Roger Robb of the U.S. Court of Appeals for the District of Columbia Circuit, and served as a lieutenant in the U.S. Navy Reserve Judge Advocate General's Corps. Justice Hecht received a B.A. from Yale University and his J.D. from the SMU Dedman School of Law. Meet Jackson Walker Since Jackson Walker's founding in 1887, our attorneys have represented some of the most influential companies and business leaders in the world. Today, we remain firmly rooted in Texas while serving clients around the globe. With more than 500 attorneys, we are the largest firm in Texas and have been recognized by Law360 as a 'Texas Powerhouse' and an 'elite law firm' that regularly provides counsel to industry-leading clients. Jackson Walker's trial group is one of the largest in the Southwest, comprising about 30% of the firm's more than 500 attorneys. To learn more, visit the Trial & Appellate Litigation practice page.

Bankruptcy judge defeats ethics complaint over knowledge of colleague's relationship
Bankruptcy judge defeats ethics complaint over knowledge of colleague's relationship

Reuters

time01-05-2025

  • Business
  • Reuters

Bankruptcy judge defeats ethics complaint over knowledge of colleague's relationship

May 1 (Reuters) - A federal bankruptcy judge in Houston has been cleared of wrongdoing over allegations that he failed to report that another judge in his court had been in an undisclosed romantic relationship with an attorney at the law firm Jackson Walker. U.S. Circuit Judge Edith Jones dismissed a judicial misconduct complaint filed with the 5th Circuit Judicial Council against a jurist matching the description of U.S. Bankruptcy Judge Marvin Isgur citing a lack of evidence that he had "reliable" information about former U.S. Bankruptcy Judge David Jones' relationship before it became public. While the decision does not identify either judge by name, the ruling's details and descriptions of the judges match those of Isgur and Jones, who himself had been the subject of a judicial ethics probe that ended after he left the bench. Those details include a quote from a presentation Isgur gave and business records detailing his listing as a registered agent on a business filing for an entity owned by the judge's adult child, which the complaint described as a "political persona." Isgur did not respond to a request for comment. Jones resigned in 2023, days after acknowledging that he had been in a years-long relationship with bankruptcy lawyer Elizabeth Freeman, who had worked at Jackson Walker, a firm that handled cases before the judge, and shared a home with her. Before his resignation, Jones had been the busiest bankruptcy judge in the United States and presided over the bankruptcies of JCPenney, Neiman Marcus, Party City and Chesapeake Energy, among many others. The resulting scandal prompted a criminal investigation into Jones and litigation by the U.S. Trustee, the Justice Department's bankruptcy watchdog, to force Jackson Walker to disgorge millions of dollars in legal fees Jones approved in at least 35 bankruptcy cases involving the law firm. Isgur, whose daughter is the conservative legal media commentator Sarah Isgur, had been a onetime mentor and law partner with Jones, whom he described in a 2023 speech as his "stubborn adopted son." The complaint filed with the 5th Circuit was lodged by an unnamed individual litigating a case without a lawyer in an adversary proceeding in bankruptcy court that the complainant claimed Isgur should have recused himself from. The complainant claimed Isgur should have done so as the proceeding concerned a fraud upon the court perpetrated by a law firm that employed a partner the judge had described as a friend. The complainant noted how Isgur and Jones had spoken publicly about their close professional and personal relationship and argued it was likely Isgur attended social events at which Isgur and Freeman were present. Exact details on the allegations were not clear. The 5th Circuit, as is its custom with judicial misconduct cases, did not make the original complaint public. A provision of the Rules for Judicial-Conduct and Judicial-Disability Proceedings provides that cognizable misconduct by a judge can include failing to report "any reliable information reasonably likely to constitute misconduct." But Jones said the complainant lacked evidence Isgur had reliable information about Jones' relationship, and when she contacted Isgur as part of an inquiry into the allegations, he denied having any knowledge about the relationship before it became public. Read more: Ethics complaint against law firm over secret judge romance withdrawn US seeks return of fees from law firm tied to bankruptcy judge resignation Ethics probe into Texas bankruptcy judge ends following resignation

Heritage subpoenas Keller school board's attorney for records over split scheme
Heritage subpoenas Keller school board's attorney for records over split scheme

Yahoo

time19-04-2025

  • Politics
  • Yahoo

Heritage subpoenas Keller school board's attorney for records over split scheme

Attorneys for Heritage homeowners who are suing the Keller school board are subpoenaing board attorney Tim Davis to testify at a deposition and provide documents related to the board's efforts to split the school district. The split plan, which was roundly criticized by residents, was ultimately called off on March 14. However, lawsuits against the board stemming from the proposal are still pending, including the one to which the Heritage residents are a party. The Heritage neighborhood is along Heritage Trace Parkway in far north Fort Worth, close to the Alliance shopping center. Heritage and other neighborhoods west of U.S. 377, mostly in far north Fort Worth and part of Watauga, would have been split off from Keller ISD. The controversy shook the community, creating bitter divides between neighbors. According to court records, Davis, an attorney at Fort Worth-based Jackson Walker LLP, will receive a subpoena duces tecum, which requires the recipient to attend a scheduled hearing and produce requested documents. Those documents include: All communications Davis has had regarding the Keller school district since May 2022; Records of all services Davis has performed on behalf of the district since May 2022; Any documents Davis or other Jackson Walker attorneys have prepared regarding the district or sections of the Texas Education Code since May 2022; All communications between Davis and Patriot Mobile Action, the conservative Christian political action committee that has supported multiple Keller school board members, including those accused of trying to split the district; Presentations that Davis or other Jackson Walker attorneys have prepared regarding school board governance, the Texas Open Meetings Act or the Texas Education Code; Engagement correspondence between Davis and other Texas school districts. The deposition that Davis is required to attend is scheduled for May 5 at the offices of Kelly Hart and Hallman LLP, the firm representing the Heritage homeowners. Davis must produce the documents no later than May 28. Should Davis refuse to testify at the hearing or provide the documents, he could be found in contempt of court and 'punished by fine or confinement, or both,' according to the subpoena notice. Keller parent Matthew Mucker originally filed the lawsuit against the Keller board in Tarrant County District Court in January, alleging that board trustees violated the Texas Open Meetings Act by discussing the spit behind closed doors. The Heritage homeowners group joined that suit as intervenors in March, bringing in Kelly Hart and Hallman as counsel. The lawsuit requests that the judge in the case remove the five board members largely believed to be behind the split plan — President Charles Randklev and members Heather Washington, John Birt, Chris Coker and Micah Young — for 'incompetency and official misconduct.' The board members have denied wrongdoing and have requested the lawsuit be dismissed while questioning the motivations behind it. The two Keller school board members who represent constituents in Fort Worth — Chelsea Kelly and Joni Shaw Smith — have been vocal opponents of the split and are not defendants in the Heritage suit.

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