On Tuesday, January 14, 2025, Bloomberg Law reported that a casual dinner conversation unexpectedly ignited an ethics crisis at Jackson Walker LLP, a prominent law firm. The catalyst was a disclosure made to litigation partner W. Ross Forbes by a friend and client, Gary George, regarding a secret relationship between Elizabeth Freeman, a bankruptcy partner at Jackson Walker, and Houston bankruptcy Judge David R. Jones.
The revelation occurred during a dinner on January 31, 2022, at Moxies restaurant in Dallas. George, while discussing Dallas Cowboys game tickets Forbes had gifted him, mentioned that his friend, Nick Simms, had accompanied him. He then revealed that Simms’ ex-wife was Freeman, a Jackson Walker partner. George expressed his surprise that Freeman was living with Judge Jones, a fact that raised significant ethical concerns given Jackson Walker’s frequent representation of clients before Jones’ court.
Forbes initially dismissed George’s claim, as Freeman had previously assured the firm that her relationship with Jones was over. However, George provided corroborating details, including anecdotes about Freeman’s children’s strained relationship with Jones following a police incident at a party they had thrown. He further substantiated his claim by texting Simms, who confirmed that Freeman and Jones were indeed cohabitating. This confirmation shocked Forbes, prompting him to immediately leave the restaurant and contact the managing partner of Jackson Walker’s Houston office.
This unexpected disclosure revived a previously thought-resolved issue. The firm was forced to confront Freeman again about her earlier denials. She subsequently admitted that her relationship with Judge Jones had resumed. This admission came after almost a year of the firm believing the relationship had ended. By December 2022, Freeman left Jackson Walker to establish her own practice.
Despite this knowledge, Jackson Walker continued to represent clients before Judge Jones without disclosing the connection. The relationship only became public in October 2023, leading to Judge Jones’ resignation from the bench. Jackson Walker maintains that Freeman misled the firm’s management and that they acted appropriately once the truth was revealed.
The US Trustee, acting as a bankruptcy monitor for the Department of Justice, is pursuing the disgorgement of approximately $23 million in fees collected by Jackson Walker in cases involving Judge Jones during Freeman’s employment. The government alleges a clear ethical violation due to the firm’s failure to disclose the undisclosed romantic relationship. A trial is scheduled for April to determine whether the fee awards should be vacated and whether sanctions should be imposed on the firm.
The US Trustee’s investigation also included the deposition of Veronica Polnick, a Jackson Walker partner who previously served as a law clerk for Judge Jones. Polnick’s deposition, spanning nearly nine hours, covered her relationship with both Freeman and Jones. While she initially claimed ignorance of their cohabitation, she later admitted to discovering their joint tenancy while researching real estate records in 2017 or 2018.
Despite receiving an anonymous letter in March 2021 alleging the relationship, Polnick stated that she never directly asked Freeman about her romantic involvement with Jones, citing it as a matter of personal privacy. Her testimony also included details of a conversation with Judge Jones on March 10, 2021, the day of a recusal hearing where a letter alleging the relationship was sealed by Judge Marvin Isgur. Jones, according to Polnick, apologized for the situation and mentioned contacting Joshua Sussberg, a Kirkland & Ellis partner, regarding the matter. The sealed letter remained undisclosed until October 2023. Jackson Walker served as local counsel for McDermott International in this case, with Kirkland & Ellis as lead counsel.
The events surrounding W. Ross Forbes’ dinner conversation and the subsequent investigation highlight the complexities of ethical considerations within the legal profession and the potential consequences of undisclosed conflicts of interest. The upcoming trial will determine the extent of the firm’s liability and the ultimate consequences of their actions.
Source: Bloomberg Law
