DOJ Bankruptcy Unit Decries ‘Inefficient’ Jackson Walker Fee Row

A Houston bankruptcy court’s process to decide whether Jackson Walker LLP must return millions in fees for failing to disclose an ex-partner’s romance with a prominent judge is “inefficient” and should be moved to a federal district court, a Justice Department attorney said.

The fragmented approach to adjudicating the proceedings among multiple bankruptcy judges is costly and needs to be consolidated under the district court, the US Trustee said in a motion for a status conference filed Wednesday in the US District Court for the Southern District of Texas.

The US Trustee—the Justice Department’s bankruptcy monitor—wants to vacate orders approving ...