Jackson Walker Seeks Sanctions, Dismissal of Judge Romance Suit

Jackson Walker LLP moved to throw out a lawsuit alleging it helped keep secret a romantic relationship between a onetime Texas bankruptcy judge and one of the firm’s former partners for years.

The Texas firm moved for dismissal and sanctions against the former CEO of petroleum barge company Bouchard Transportation Co. Inc., as well as his counsel at Bandas Law Firm, to prevent what it called “further frivolous and harassing litigation” in Monday court filings in the US District Court for the Southern District of Texas. Bandas also represents a plaintiff in another lawsuit accusing the firm, among others, of concealing the relationship.

Jackson Walker’s move is part of the ongoing fallout related to former Texas bankruptcy Judge David R. Jones’ longstanding romance with Elizabeth Freeman, who parted ways with the firm in 2022. Jones, Freeman, and Kirkland & Ellis LLP, which worked alongside Jackson Walker in many Houston-based Chapter 11 cases, are also defendants in the case.

Morton Bouchard, who was removed as head of Bouchard Transportation during its 2020 bankruptcy, filed the suit in February. Bouchard argued that the failure to disclose the relationship amounted to bankruptcy fraud, honest services fraud, mail and wire fraud, and obstruction of justice under the Racketeer Influenced and Corrupt Organizations Act.

Jackson Walker noted in Monday’s filings that Bouchard’s suit is almost identical to one lodged in October by Michael Van Deelen, who was a shareholder involved in the 2020 McDermott International Inc. bankruptcy, and who is also represented by Bandas. Jackson Walker has moved to dismiss Van Deelen’s suit as well.

The lawsuits “rest upon the men’s dissatisfaction with Chapter 11 proceedings for separate companies,” rather than valid claims against the defendants, Jackson Walker said. Bouchard’s suit is sanctionable because, like in Van Deelen’s case, the underlying bankruptcy plan included a provision that released Jackson Walker, among others, from future litigation, the firm said. Kirkland & Ellis has moved for sanctions in Van Deelan’s suit.

Bouchard’s complaint also failed to mention Bouchard’s role in his company’s downfall, Jackson Walker said.

Bouchard is “a disgruntled millionaire with an ax to grind” because he was ousted for allegedly engaging in misconduct that led to the company’s bankruptcy, Jackson Walker said. His former company has pending litigation against him for breach of fiduciary duty. The firm also targeted Bandas, saying he practiced law in Illinois unauthorized and failed to fully disclose sanctions against it in a Missouri case.

Bandas didn’t immediately respond to a request for comment.

Jackson Walker is seeking an order requiring Bandas to obtain permission from the court before filing any future suits alleging RICO claims or other misconduct by Jones and the firm. It also sought attorneys’ fees for the dismissal and sanctions motions.

Kirkland & Ellis and Freeman also moved to dismiss Bouchard’s case in April.

Bouchard Transportation filed for bankruptcy in September 2020. The company’s plan was approved in August 2021.

Rusty Hardin & Associates LLP represents Jackson Walker.

The case is Bouchard v. Jones, S.D. Tex., No. 24-cv-00693, motion for sanctions 5/13/24.