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    Kenneth C. "KJ" Johnston

    Partner

    Dallas
    972-474-1718
    kenneth.johnston@phelps.com
    Areas Of Focus
    Commercial LitigationBanking and Financial ServicesBankruptcy and Reorganization

    Kenneth “KJ” Johnston represents financial institutions, energy companies and businesses in high-stakes litigation, regulatory actions and complex business disputes. He helps clients navigate disputes where legal, financial and operational risks converge.

    When corporate governance, creditor remedies and financial exposure add risk to clients’ operations, KJ aligns legal strategy with business objectives and realities.

    KJ’s practice is grounded in financial services litigation. He regularly represents banks, lenders and institutional clients in disputes involving loan structures, syndications, lender liability and statutory frameworks, including:

    • Fair Credit Reporting Act (FCRA)
    • Fair Debt Collection Practices Act (FDCPA)
    • Equal Credit Opportunity Act (ECOA)
    • Uniform Commercial Code (UCC)

    With more than three decades of experience, KJ has tried cases, led mediations and guided clients through complex disputes involving insolvency, ownership and control issues, and regulatory pressure. He works to develop the factual and strategic record early, position cases for resolution, and protect client leverage, timing and outcomes. He works with clients in a wide range of industries, including resolving energy sector disputes involving governance and control of key assets.

    With more than three decades of experience, KJ has tried cases, led mediations and guided clients through complex disputes involving insolvency, ownership and control issues, and regulatory pressure. He works to develop the factual and strategic record early, position cases for resolution, and protect client leverage, timing and outcomes. He works with clients in a wide range of industries, including resolving energy sector disputes involving governance and control of key assets.

    Experience

    • Secured Eleventh Circuit affirmance preserving a trial victory involving a $35 million participated loan facility, with the court finding the plaintiff failed to prove damages.
    • Obtained a take-nothing judgment after a five-day trial, defeating approximately $10 million in claims against a super-regional bank in a loan participation dispute.
    • Protected sensitive bank records in federal court by obtaining a ruling applying suspicious activity report privileges in Ponzi-scheme litigation.
    • Achieved dismissal with prejudice of a federal qui tam action involving a $16 billion commercial loan portfolio.
    • Guided an energy company out of an involuntary bankruptcy through an out-of-court creditor composition, reducing unsecured debt by approximately 40%.
    • Blocked class certification in a consumer financial services case, with the court finding that individual issues predominated.

    Insights

    • May 1, 2026

      Phelps Invests More in DFW, Adding Five Financial Services Lawyers in Dallas From Former Boutique Litigation Firm …

    Recognition

    • AV Preeminent Peer Review Rated, Martindale-Hubbell
    • Banking and Finance Law, The Best Lawyers in America (2024–2026)
    • Chambers USA: America’s Leading Lawyers for Business - Litigation: General Commercial (2009—2010, 2013—2026)
    • Commercial Disputes, The Legal 500 U.S. Elite, City of Dallas
    • Texas Super Lawyers List, (2006-2026), Rising Stars List (2004, 2006), Super Lawyers
    • Best Lawyers in Dallas, Banking and Finance (2013-2026), D Magazine
    • Senior Fellow, Litigation Counsel of America
    • AV Preeminent Peer Review Rated, Martindale-Hubbell
    • Banking and Finance Law, The Best Lawyers in America (2024–2026)
    • Chambers USA: America’s Leading Lawyers for Business - Litigation: General Commercial (2009—2010, 2013—2026)
    • Commercial Disputes, The Legal 500 U.S. Elite, City of Dallas
    • Texas Super Lawyers List, (2006-2026), Rising Stars List (2004, 2006), Super Lawyers
    • Best Lawyers in Dallas, Banking and Finance (2013-2026), D Magazine
    • Senior Fellow, Litigation Counsel of America

    Education

    • University of Mississippi School of Law, J.D., 1991
    • University of Mississippi, B.B.A., Banking and Finance, 1988
    • University of Mississippi School of Law, J.D., 1991
    • University of Mississippi, B.B.A., Banking and Finance, 1988

    Credentials

    • Texas
    • Mississippi
    • U.S. Supreme Court
    • U.S. Court of Appeals for the Fifth Circuit
    • U.S. Court of Appeals for the Eleventh Circuit
    • U.S. District Court, Eastern District of Texas
    • U.S. District Court, Northern District of Texas
    • U.S. District Court, Southern District of Texas
    • U.S. District Court, Western District of Texas
    • U.S. District Court, Northern District of Mississippi
    • U.S. District Court, Southern District of Mississippi
    • U.S. District Court, Northern District of Florida
    • Texas
    • Mississippi
    • U.S. Supreme Court
    • U.S. Court of Appeals for the Fifth Circuit
    • U.S. Court of Appeals for the Eleventh Circuit
    • U.S. District Court, Eastern District of Texas
    • U.S. District Court, Northern District of Texas
    • U.S. District Court, Southern District of Texas
    • U.S. District Court, Western District of Texas
    • U.S. District Court, Northern District of Mississippi
    • U.S. District Court, Southern District of Mississippi
    • U.S. District Court, Northern District of Florida

    Memberships and Affiliations

    Professional

    • American Law Institute
    • Dallas Bar Association
    • State Bar of Texas, Pro Bono College
    • American Bankruptcy Institute
    • Texas Association of Bank Counsel
    • Trial Law Institute
    • Diversity Law Institute

    Civic

    • United Way of Metropolitan Dallas
    • SMU Athletic Forum, Board of Directors
    • Ducks Unlimited – Sponsor
    • University of North Carolina School of Law, Center for Banking and Finance, Steering Committee

    Professional

    • American Law Institute
    • Dallas Bar Association
    • State Bar of Texas, Pro Bono College
    • American Bankruptcy Institute
    • Texas Association of Bank Counsel
    • Trial Law Institute
    • Diversity Law Institute

    Civic

    • United Way of Metropolitan Dallas
    • SMU Athletic Forum, Board of Directors
    • Ducks Unlimited – Sponsor
    • University of North Carolina School of Law, Center for Banking and Finance, Steering Committee
    • Overview
    • Experience
    • Insights
    • Recognition
    • Education
    • Credentials
    • Memberships and Affiliations

    Related Services

    • Commercial Litigation
    • Bankruptcy and Reorganization
    • Energy
    • Banking and Financial Services
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