The former CEO of Highland Capital Management, James D. Dondero, believes novels written by U.S. Bankruptcy Judge Stacey Jernigan contains an “evildoer” character based on him. The issue is Highland Capital Management’s bankruptcy is before Judge Jernigan, and Dondero is involved due to allegations from a trustee that Dondero tried to avoid litigation claims by transferring company assets.
Dondero sought Judge Jernigan’s removal in an April 4 petition for mandamus. That was ordered unfiled because the previous bankruptcy appeal was dismissed, he can, however, file a new action.
But the original petition lays out Dondero’s argument for why the character of Cole Graham in Jernigan’s books, He Watches All My Paths and Hedging Death, is based on him. As reported by ABA Journal:
Why Law Firms Are Moving Beyond The Billable Hour
Explore 5 expert-backed reasons law firms are rethinking the billable hour and how legal billing software is leading the way.
According to the petition, the first novel “describes the ‘high-flying hedge fund managers’ as individuals that ‘suck up money like an i-robot vacuum,’ seem to ‘make money no matter what,’ and show ‘outrageous amounts of hubris’ as part of their ‘bro culture.’ It strongly suggests a judge harboring bias against those operating in the hedge fund industry.”
The petition alleges several similarities to Dondero and his company in the second novel. They include:
-
The novel involves a Dallas-based hedge fund called Ranger Capital; Highland Capital Management was formerly known as Ranger Asset Management.
-
Ranger Capital’s manager is described as a reckless investment manager and a “nasty” litigant; Jernigan had used the same language to describe Dondero in the bankruptcy proceedings.
-
The novel describes the life settlement industry as “creepy;” Dondero was involved in the life settlement industry.
But the judge says Dondero is seeing things that aren’t there and that her character is not based on him.
Jernigan said her novels are “entirely fiction” and “are not about Mr. Dondero or the hedge fund industry in general.”
The first novel is about a federal judge who receives death threats, Jernigan said. The perpetrator is not a person in the hedge fund industry. The second novel involves a manhunt for a criminal in the first book. The Cade Graham character fakes his death after linking up with Mexican drug cartels, she said.
As for the Ranger Capital coincidence, Jernigan said she “has never once heard” that it was a prior name for Highland Capital Management.
Plugging The Profit Leaks: How Your Firm Can Stop Burning Money
Join the webinar on September 25th and learn some quick wins you can implement right away.
A Texas author using a ranger reference doesn’t seem particularly strange to me. But should the motion for recusal get refiled, the federal judiciary will weigh in on the matter.
Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on