Texas Bankruptcy Court Sticks to Judge Practice Others Banished

One of the most popular bankruptcy courts in the US still employs a case assignment system that others have cut off, despite growing complaints the method provides unfair advantages to bankrupt companies.

The US Bankruptcy Court for the Southern District of Texas assigns large, complex Chapter 11 cases to one of two judges. The practice, which gives top bankruptcy law firms predictability about who will be handling a case, has led to accusations the court encourages, and rewards, venue shopping—accusations only growing louder after one of the two judges on the panel was forced to resign under an ethics scandal. ...