In re: Alliance Farm and Ranch, LLC, et al. v. Jerod P Furr, et al.

United States Bankruptcy Court, S.D. Texas·Decided August 17, 2026·No. 25-03382·Unknown

Opinion

August 18, 2026 Nathan Ochsner, Clerk IN THE UNITED STATES BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF TEXAS HOUSTON DIVISION

IN RE: § § CASE NO: 25-30155 ALLIANCE FARM AND RANCH, § LLC, et al., § CHAPTER 11 § Debtors. § § RE: ECF Nos. 361, 363, 366 & § 367 § DUSTIN ETTER, § § Plaintiff, § § VS. § ADVERSARY NO. 25-3382 § JEROD P FURR, et al., § RE: ECF Nos. 69, 71, 74, 75, 76, 80, 81, 87, 102, 103, 109 & Defendants. 115

MEMORANDUM OPINION AND ORDER GRANTING AND DENYING (I) ATTORNEY DISQUALIFICATION AND WITHDRAWAL MOTIONS, (II) DISMISSAL AND REMAND MOTIONS, AND (III) DOCUMENT TURNOVER AND PROTECTIVE ORDER MOTIONS INTRODUCTION Before the Court are a variety of motions by the Parties in both the Debtors’ main bankruptcy case and the related adversary proceeding. JURISDICTION 28 U.S.C. § 1334 provides the District Courts with jurisdiction over this proceeding. 28 U.S.C. § 157(b)(1) states “Bankruptcy judges may hear and determine all cases under title 11 and all core proceedings arising under title 11, or arising in a case under title 11, referred under subsection (a) of this section, and may enter appropriate orders and judgments, subject to review under section 158 of this title.” This Court has jurisdiction over this proceeding as it is a core proceeding the Court can consider under 28 U.S.C. § 157(b)(2)(A), (B), (E), (F), (H) & (L). The Court has post-confirmation jurisdiction over this matter as it “pertains to the implementation or execution of the plan.” Craig’s Stores of Tex., Inc. v. Bank of La. (In re Craig’s Stores of Tex., Inc.), 266 F.3d 388, 390 (5th Cir. 2001); 11 U.S.C. § 1142(b). The Court also has the inherent jurisdiction to determine its own jurisdiction. Scherbatsky v. Halliburton Co., 125 F.3d 288, 290 (5th Cir. 1997) (citing U.S. v. United Mine Workers of Am., 330 U.S. 258 (1947)). Moreover, to the extent this Memorandum Opinion and Order requires interpreting and enforcing this Court’s prior Confirmation Order, the Court retains continuous jurisdiction to interpret and enforce its own orders. Travelers Indem. Co. v. Bailey, 557 U.S. 137, 151 (2009). This proceeding has been referred to the Bankruptcy Court under General Order 2012-6. The Court has constitutional authority to enter final orders and judgments. Stern v. Marshall, 564 U.S. 462, 486–87 (2011). And venue is proper in this District pursuant to 28 U.S.C. § 1408. ATTORNEY DISQUALIFICATION AND WITHDRAWAL MOTIONS I. BACKGROUND. On May 27, 2026, Dustin Etter1 filed Plaintiff’s Motion to Disqualify, seeking disqualification of Deborah Crain, Alyssa Cuellar,

1 In accordance with the Modified Combined Disclosure Statement and Chapter 11 Plan of Liquidation of Alliance Farm and Ranch, LLC and Alliance Energy Partners, LLC Proposed by the Chapter 11 Trustee and the Official Committee of Unsecured Creditors (the “Modified Plan”), a copy of which is attached as Exhibit 2 to the Order Confirming Modified Combined Disclosure Statement and Chapter 11 Plan of Liquidation of Alliance Farm and Ranch, LLC and Alliance Energy Partners, LLC Proposed by the Chapter 11 Trustee and the Official Committee of Unsecured Creditors (the “Confirmation Order”) [Case No. 25-30155, ECF No. 338], Dustin Etter now owns Debtors Alliance Energy Partners, LLC (“AEP”) and Alliance Farm and Ranch, LLC (“AFR” and together with “AEP,” the “Debtors”), along with all of both Debtors’ non-cash assets. and Randal Bays from representing any party in the adversary proceeding or the Debtor’s main bankruptcy cases due to their prior representation of the Debtors and current representation of Jerod Furr and certain non-debtor entities.2 On June 1, 2026, Jerod P. Furr, AE Partners Holdings, Inc., AEP Asset Holdings, LLC, and Invictus Drilling Motors, LLC (collectively the “Furr Defendants”) filed a Response in Opposition to Plaintiff Dustin Etter’s Motion to Disqualify Deborah L. Crain and E-Merger Law, PLLC as Counsel.3 In the response, the Furr Defendants argue Mr. Etter’s Motion to Disqualify should be denied because (i) Mr. Etter’s motion was filed fifteen months after Noah Meek—counsel for Mr. Etter—sent Ms. Crain a letter advising her of the conflict; therefore he has since waived any conflict-based arguments for disqualification, (ii) the motion is overbroad because the Modified Plan and Confirmation Order did not determine ownership over non-debtor entities or their assets, (iii) disqualification pursuant to TEX. DISCIPLINARY R. PROF’L CONDUCT 1.09(a) is unwarranted because Mr. Etter’s motion does not identify any specific subject matter of any prior representation requiring disqualification, (iv) a portion of the Motion to Disqualify is effectively moot because Ms. Crain had agreed to voluntarily withdraw from her representation of the Debtors, and (v) disqualification of her representation of Mr. Furr at this time would cause him “immediate and palpable” harm in the adversary proceeding.4 On June 1, 2026, the Furr Defendants filed the Expedited Motion to Withdraw as Counsel for Debtors Alliance Farm and Ranch, LLC and

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In re: Alliance Farm and Ranch, LLC, et al. v. Jerod P Furr, et al., (Tex. 2026).

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