When Texas bankruptcy judge David R. Jones hid his romantic relationship with a Biglaw partner and continued to hear cases involving that partner/law firm, it led to a legal ethics conundrum that is still ongoing.
Jones, the (now former) federal bankruptcy judge, was involved with Elizabeth Freeman, the (now former) bankruptcy partner at Jackson Walker, and somehow didn’t recuse himself from cases involving Freeman. As a result, Jones resigned from the bench. Plus, the Department of Justice is suing Freeman’s former firm to try to disgorge up to $23 million in fees it collected in cases overseen by Jones. And this week, Jackson Walker is facing another lawsuit because of this mess.
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As reported by Bloomberg Law, former client JCPenney filed a lawsuit earlier this week seeking the disgorgement of $1.1 million in fees. The retailer alleges the firm failed to inform JCPenney “at any time” about the relationship before it became public in October 2023, despite the firm and/or some of its attorneys knowing about the relationship sooner. The complaint alleges the firm “consciously and deliberately made the economic decision to breach its duties” to its client.
The complaint further alleges Jackson Walker took “half-hearted” and “inadequate actions in an attempt to address the issue.” Making none too fine a point on the rationale for disgorging the fees the firm collected, “Simply put, the revenue from appearing in front of Jones outweighed [Jackson Walker’s] view of its professional obligations.”
Jackson Walker has not commented on the complaint.
Earlier: Former Judge Gets Combative When Pressed On His Romantic Relationship
Who Knew What When? The Latest In The Judge/Partner Romantic Scandal Rocking The Legal World
You Have To Read The Texts Uncovered In The Judge/ Biglaw Partner Romantic Scandal
Federal Judge Slams Biglaw Firm, Says Firm ‘Defiled The Very Temple Of Justice’
Biglaw Firm Still Paying The Price For Former Partner’s Romantic Scandal
Scandal-Ridden Former Federal Judge Seeks To Squash Lawsuit That Started It All
The Wild Ethical Lapse That Led To The Resignation Of A Top Bankruptcy Judge
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Kathryn Rubino is a Senior Editor at Above the Law, host of The Jabot podcast, and co-host of Thinking Like A Lawyer. AtL tipsters are the best, so please connect with her. Feel free to email her with any tips, questions, or comments and follow her on Twitter @Kathryn1 or Mastodon @[email protected].