DOJ Is Overstepping in Bankruptcy Fee Fight, Jackson Walker Says

The Justice Department’s bankruptcy monitor is overreaching in its effort to disgorge fees in a fight over Jackson Walker LLP’s failure to disclose a relationship between an ex-firm partner and former judge, the Texas law firm said.

The US Trustee’s “watchdog” role doesn’t give it standing to take control over bankruptcy estate claims under the guise of an enforcement action, Jackson Walker told the US Bankruptcy Court for the Southern District of Texas on Thursday. The firm is fighting the government’s bid to recover for creditors more than $23 million in fees it collected over 33 bankruptcy cases involving former ...