Two Jackson Walker LLP attorneys exchanged text messages in 2021 showing they knew about, and discussed the potential fallout of, an undisclosed romantic relationship between a firm lawyer and a former Houston bankruptcy judge.
The texts, which were displayed in records viewed by Bloomberg Law, appeared to be the subject of debate during a bankruptcy court hearing Tuesday over discovery related to the Justice Department bankruptcy unit’s claims that the Texas law firm breached its ethical duties. The bankruptcy monitor, the US Trustee, says Jackson Walker should disgorge at least $18 million because the firm failed to disclose what it says is a clear conflict of interest.
The relationship between Elizabeth Freeman, a partner who left Jackson Walker in late 2022, and David R. Jones, the prominent bankruptcy judge who resigned from the bench last year after admitting to the romance, has roiled the Houston bankruptcy community and prompted several legal actions.
The texts viewed by Bloomberg Law, which indicate the Jackson Walker attorneys who sent them were trying to “protect” Freeman, are notable in light of the firm’s statements that it took appropriate actions when it learned of the relationship. Jones regularly presided over Jackson Walker’s cases in bankruptcy court before he resigned.
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