James' lawyer, John Schilling tells E! News that an Orange County judge will be awarding James sole custody of daughter Sunny, ending a bitter tug-of-war with ex-wife Janine Lindemulder.
James moved to Austin, Texas, last August taking Sunny, 7, with him. (James' other two children with his first wife, Karla—Chandler, 16 and Jesse Jr., 14—also live with their dad.)
Lindemulder had opposed her daughter moving to Texas, but while she lost that battle, she continued to fight for her custody rights in a California court.
Last Friday, James, 42, was ordered to appear in a Southern California courtroom to argue his side.
However, after hearing both testimonies, Judge David Belz ruled Monday that neither parent is currently living in California and thus transferred the custody and visitation case to Texas.
Meanwhile, Schilling tells E! News, Belz is drawing up the order right now that will give James sole custody Sunny.
Lindemulder tried to argue on the stand that she was currently a resident of California, but Judge Beltz ruled otherwise.
"The judge basically said that she had been living in Oregon and could not find any viable residence for her in California," Schilling tells E! News. "Basically she had spent 30 nights sleeping in her truck since the first of the year," Schilling says.
Upon learning that the judge was transferring the case to Texas, Lindemulder stormed out of the courtroom and did not return for an hour until she was cajoled back by the courtroom clerk.
But it wasn't a complete disaster for Lindemulder.
The judge also followed the recommendation of a court-appointed mental-health professional and suggested that if Lindemulder enter an inpatient rehabilitation facility, she would be able to get some degree of visitation with Sunny, says Schilling. Or if Lindemulder decides not to enter treatment, she can get eight to 12 hours of monitored visitation (one weekend without an overnight) in Texas with her daughter.
However, Lindemulder's attorney was quick to point out that it's not as bad as it seems.
"[James] has joint legal custody," Richard Masson told E! News. "The sole legal custody was if Janine did not move to Texas and she is there right now. So he does not have sole custody."
Sole legal custody, that is. He would not comment on whether James was in fact granted sole physical custody.
Per Masson, Lindemulder is currently in Texas and and plans to enroll in patient treatment, for which James has agreed to help pay for, up to $15,000. Once her treatment is successfully completed, Masson said he believes the custody will return to a more balanced split.
Meanwhile, it was also inadvertently revealed that James' split from Kat Von D was even more recent than first thought. While on the stand Friday, he testified that he was still engaged, planning to get married, and that Kat would be joining him in Austin.
(Originally published July 26, 2011, at 3:35 p.m. PT)