Judge’s Ties to Lawyer Put $125 Million Judgment at Center of Ethics Dispute

A federal appeals court agreed Thursday to reconsider a decision involving a nearly $125 million judgment and a Louisiana judge’s longstanding ties to the lawyer who won it.

The U.S. Court of Appeals for the Fifth Circuit withdrew its September opinion and granted rehearing, according to Reuters. The court said it would issue a new opinion without requesting additional briefing or oral argument. It did not indicate whether the outcome would change.

The dispute stems from litigation between IFG Port Holdings and the Lake Charles Harbor and Terminal District. Both sides agreed to have U.S. Magistrate Judge Kathleen Kay hear the case. After a 20-day bench trial, Kay awarded IFG nearly $125 million.

The Port later challenged Kay’s role, pointing to her relationship with IFG attorney William Monk. Court records describe connections that included Monk serving as a groomsman at Kay’s wedding and Kay officiating a wedding for one of Monk’s daughters.

Kay had disclosed that another of Monk’s daughters worked as her law clerk and would be screened from the case. The dispute concerned whether that disclosure adequately explained the broader relationship.

In its now-withdrawn September decision, the appeals panel divided over whether the circumstances justified undoing the parties’ agreement to proceed before Kay.

The majority upheld the decision vacating the referral. Judge Andrew Oldham dissented, arguing that ordinary social connections within a small legal community did not meet the standard required to set that agreement aside.

Thursday’s action returns that question to the panel. It does not resolve the appeal or establish a disciplinary sanction against Kay.