Kirkland, Jackson Walker to Be Sued Over Judge Romance Again (1)

Former bankruptcy Judge David R. Jones, Kirkland & Ellis LLP, and Jackson Walker LLP are likely to be hit with another lawsuit related to the previously undisclosed romantic relationship between Jones and a onetime Jackson Walker attorney.

Jones, Kirkland and Jackson Walker already face two other suits stemming from cases Jones presided over while in a secret relationship with Elizabeth Freeman, the former Jackson Walker lawyer. A group of individuals disclosed their plans to file a new suit in a filing Monday related to the 2020 bankruptcy of J. C. Penney Direct Marketing Services LLC. Jones oversaw the bankruptcy and the two firms represented the retailer.

The filing didn’t say what connection the potential plaintiffs had to the J. C. Penney case, but previous court filings suggest at least one of them was a bondholder. A lawyer for the group didn’t immediately respond to a request for more information.

The new lawsuit would allege “a conspiracy and pattern of racketeering activity involving Jones, Freeman, Jackson Walker, and Kirkland, which resulted in manipulation of the bankruptcy system by this conspiracy and, among other things, millions of dollars in improper attorneys’ fees awarded,” the filing said.

Jackson Walker and Kirkland have denied similar allegations made against them in recent months.

The new complaint would allege RICO violations, racketeering, common law fraud, breach of fiduciary duty, and unjust enrichment, among other allegations, and will seek to disgorge fees.

A shareholder involved in the 2020 Chapter 11 of McDermott International Inc. sued Jones in October. The plaintiff, Michael Van Deelen, accused Jones, who presided over the McDermott case, of living with attorney Freeman for years and hiding the relationship. He later added Kirkland and Jackson Walker, which together represented McDermott in the bankruptcy, as defendants as well, accusing them of helping conceal the romance and potential conflict of interest. Freeman was also named as a defendant.

Kirkland , Jackson Walker and Freeman have moved to dismiss the suit. Jones has said he has judicial immunity from litigation.

In another suit, the former CEO of petroleum barge company Bouchard Transportation Co. Inc. accused Kirkland and Jackson Walker of filing multiple “misleading and dishonest” court papers in the company’s Chapter 11 case without disclosing the relationship between Jones and Freeman. The firms haven’t yet formally responded to that complaint.

Jones resigned last year. Freeman left Jackson Walker before the allegations surfaced.

A Jackson Walker spokesperson declined to comment.

Kirkland didn’t immediately respond to a request for comment.

The potential new plaintiffs are represented by Jordan & Ortiz P.C. and Bandas Law Firm P.C.

The case is J. C. Penney Direct Marketing Services LLC, Bankr. S.D. Tex., No. 20-20184, 4/15/24.