- Ex-bankruptcy judge relationship queries lead to tense hearing
- Creditor attorney sought answers about relationship
A Texas bankruptcy judge shut down questioning of a Jackson Walker attorney surrounding his knowledge of the romance between former bankruptcy judge David R. Jones and another Jackson Walker lawyer.
A Monday hearing on Jackson Walker’s fees for its work as co-counsel in the bankruptcy of oil producer Cox Operating grew contentious when Johnie Patterson, a lawyer for creditors, asked Jackson Walker partner Matthew Cavenaugh about when he knew about Jones’ relationship with Elizabeth Freeman, a onetime partner at the firm.
The once-secret relationship has been the source of intense scrutiny since it was revealed last year, as Jackson Walker regularly represented clients in Jones’ courtroom. The Justice Department’s bankruptcy watchdog has launched a probe into legal fees Jones approved for Jackson Walker while it employed Freeman. Jones, however, didn’t oversee Cox Operating’s case.
Attorneys representing Jackson Walker objected to Patterson’s efforts to probe Cavenaugh’s knowledge of the relationship, arguing that some of the questions were irrelevant and amounted to harassment.
Judge Christopher Lopez of the US Bankruptcy Court for the Southern District of Texas ruled that a different matter, overseen by Judge Eduardo V. Rodriguez, was the appropriate place to address the serious issues surrounding the romance. Rodriguez is overseeing the consolidated Justice Department objections to Jackson Walker’s fees.
“This isn’t the forum to bring those matters up,” Lopez said. “Those matters are being handled in front of Judge Rodriguez.”
Lopez said it would be best to let the record develop in that case before addressing Jackson Walker’s fees in the Cox Operating case.
“Let’s just wait,” he said.
Patterson was representing creditors Crosby Energy Services Inc., Danos LLC, and Westwind Helicopters Inc. Jackson Walker is represented by Kane Russell Coleman Logan PC.
The case is MLCJR LLC, Bankr. S.D. Tex., No. 23-90324, 8/19/24.
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