Texas law firm Jackson Walker is pushing back against a hand sanitizer company’s efforts to recoup fees the law firm earned. The company alleges that Jackson Walker did not voluntarily disclose a relationship between one of its attorneys and a bankruptcy judge. This dispute emerged amidst the proceedings of the 4E Brands North America bankruptcy case.
In the motion that Jackson Walker filed on Wednesday in the US Bankruptcy Court for the Southern District of Texas, the firm maintained that the creditor was not financially impacted or harmed by the fees it received. Specifically, the firm referred to Barry Green, a representative for the wrongful death claimant Joshua Maestas, stating that the fees paid to the law firm did not cause harm.
Central to the law firm’s argument is the lack of evidence presented proving harm done. Jackson Walker maintained, “The Motion to Vacate does not contain even a whiff of alleged harm—there is no assertion that the alleged lack of disclosure, employment of JW, or awarding of …”. The unspoken insinuation is that there is more at play than ethical considerations. It is uncertain, for now, how the bankruptcy court will rule on the matter.
The heated dispute speaks to broader issues within the realm of bankruptcy law, such as questions regarding the relationship between attorneys and judges, and whether professional connections can or should impact legal proceedings. The 4E Brands North America bankruptcy case could serve as a noteworthy example in future discussions concerning fee disclosures.
More details about this case can be found in this in-depth Bloomberg Law article, here.