- Mediator had resigned after admitting relationship with lawyer
- Judge urged a full review of medical malpractice settlement
- Tehum Care will renew mediation on Nov. 27
Nov 14 (Reuters) – Prison healthcare company Tehum Care Services received court approval on Tuesday to proceed with a new mediator who will replace former bankruptcy judge David Jones, who resigned from the bench over his romantic relationship with an attorney involved in the negotiations.
Tehum Care, which filed for bankruptcy in February to address prisoners’ medical malpractice lawsuits against its corporate predecessor Corizon Health, had reached a mediated bankruptcy settlement which would have allocated roughly $8.5 million to settle prisoners’ and former prisoners’ claims.
But before the deal was approved, attorneys for prisoners and the U.S. Department of Justice’s bankruptcy watchdog argued that the settlement was tainted because Jones, while serving as a mediator in the case, failed to disclose that he shared a home with attorney Liz Freeman, who represented Tehum’s