Ex-bankruptcy judge plays defense on pre-deposition talks, phone records

Reuters

Ex-bankruptcy judge plays defense on pre-deposition talks, phone records

2024 8월 5, 오후 9:50 GMT

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By Dietrich Knauth

Aug 5 (Reuters) -Former U.S. bankruptcy judge David Jones in Houston, who is under increasing pressure in a battle over attorneys' fees that he approved for his romantic partner's former law firm, has been summoned to court to explain his recent "off the record" discussions with the firm.

Chief Bankruptcy Judge Eduardo Rodriguez said in a Saturday court order that Jones' informal meeting may have violated a judiciary policy that says that judges and court employees may not "comment, testify, or produce records" in a legal proceeding without prior approval.

Rodriguez ordered Jones to attend a Wednesday court hearing in Houston to explain, under threat of civil contempt sanctions, why his meeting with Jackson Walker did not violate judiciary policy or Rodriguez's recent court orders. If Jones does not show up on Wednesday, he faces further penalties including a bench warrant for his arrest.

Jones resigned from the bench in October 2023 after admitting to a long-term, undisclosed relationship with bankruptcy attorney Liz Freeman, who was a partner at Jackson Walker, which regularly filed cases in Jones' court. The 5th U.S. Circuit Court of Appeals found there was probable cause to believe Jones violated the codes of conduct that govern judges, but it ended its ethics inquiry when he resigned.

The U.S. Department of Justice's bankruptcy watchdog, the office of the U.S. Trustee, has argued that Jackson Walker should disgorge over $13 million in legal fees that Jones approved in 33 bankruptcy cases, and both Jackson Walker and the U.S. Trustee have sought to depose Jones to ask who else knew about his romantic relationship.

Rodriguez has previously expressed concern that some of Jackson Walker's deposition questions could run afoul of the judicial policy that prevents judges from testifying about their official acts, and he has not yet ruled on the scope of the depositions.

Jackson Walker declined to comment Monday. Attorneys for Jones did not immediately respond to a request for comment. Freeman, who left Jackson Walker in December 2022, declined to comment.

The U.S. Trustee informed Rodriguez about the meeting in a Friday court filing, and it said that it had turned down an offer for a similar "off the record" meeting with Jones.

Jones is separately attempting to fend off a subpoena from a bankruptcy trustee who wants records of telephone calls and text messages sent and received by Jones' government issued cell phone.

The trustee, who is overseeing the wind-down of JC Penney’s 2020 bankruptcy case, is investigating "an unsubstantiated rumor that Jones and counsel appearing before him would exchange texts, including during ongoing hearings." The trustee wants to know if Jones had any communications that negatively impacted JC Penney's bankruptcy, which ultimately resulted in a $1.75 billion sale to mall operators Simon Property Group and Brookfield Property Partners.

Jones said in a court filing Monday that the phone records subpoena must be quashed, because it is irrelevant to the dispute over whether or not Jackson Walker should return its legal fees. The subpoena also threatens to impede official court business, Jones argued.

"If federal judges cannot use court-issued technology with the absolute privilege of privacy, the independence of the federal judiciary itself is negatively affected," Jones' attorneys wrote.

Rodriguez will consider both Jones' meeting with Jackson Walker and the JC Penney trustee's demand for phone records at Wednesday's hearing.

The case is In Re: Professional Fee Matters Concerning the Jackson Walker Law Firm, U.S. Bankruptcy Court for the Southern District of Texas, No. 23-00645.

For Jones: Ben Finestone and Joanna Caytas of Quinn Emanuel Urquhart & Sullivan

For Jackson Walker: Jason Boland of Norton Rose Fulbright

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Reporting by Dietrich Knauth

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