Wings Clipped

Allen W. Bird III, a former lawyer with the Rose Law Firm, may soon be forced to stop handling cases above state court level. The U.S. District Court issued an order Oct. 21 forcing Bird to “show cause” within 15 days why the court shouldn’t “revoke his privilege to practice law in the United States Courts for the Eastern and Western Districts of Arkansas.” The order stems from Bird’s involvement in a bankruptcy case that started 16 years ago involving a Fayetteville-based money order company. (See story page 1)

Stark Ligon, executive director of the Arkansas Supreme Court Office of Professional Conduct, said confidentiality restrictions would prevent him from confirming or denying that his office is also interested in Bird’s conduct in the case. Ligon said it would depend on the circumstances and declined to comment further.

Bird served as the bankruptcy estate’s trustee until June 10. That’s when U.S. District Court Judge Jimm Hendren of Fayetteville affirmed a July 2001 order by Judge Robert F. Fussell that Bird “knowingly committed fraud” while serving as trustee for the $8.5 million Chapter 11 reorganization of Northwest Financial Express.

Fussell apparently began questioning Bird’s credibility in July 2001. He later ordered Bird to pay about $199,000 back to the estate for improperly billed fees. Bird was also stuck with his and the prestigious Rose Firm’s $330,000 legal tab to Wright, Lindsey & Jennings of Little Rock, which represented him in the appeal.

Fussell wrote in his ruling that Bird had “committed misconduct of the highest order,” and was personally liable for certain expenses.

Bird left the Rose Firm on Sept. 1, 2001, to start his own practice in Little Rock — about the same time, post-trial briefs questioned his billing practices in the NWFX case.