On Saturday, August 17, 2024, Reuters reported that U.S. District Judge Alia Moses had dismissed a lawsuit brought against former bankruptcy judge David Jones, the law firms Jackson Walker and Kirkland & Ellis.
The lawsuit, filed by investor Michael Van Deelen, had accused Jones of fraud and ethics violations for concealing his long-term relationship with Elizabeth Freeman, a former partner at Jackson Walker. Van Deelen alleged that the undisclosed relationship between Jones and Freeman biased the judge in favor of Jackson Walker when the firm appeared before him in bankruptcy cases. He further claimed that both Jackson Walker and Kirkland illegally profited from Jones’ improper conduct.
However, in her 38-page ruling dismissing the case, Judge Moses found that Van Deelen could not directly link his financial losses to the actions of the law firms. Van Deelen had invested in McDermott International, but Judge Moses determined the company’s bankruptcy would have caused him to lose his equity regardless of which law firms represented parties in the case. As the alleged misconduct did not actually deprive Van Deelen of anything, Judge Moses ruled he failed to prove his claims against Jackson Walker and Kirkland.
While dismissing the lawsuit, Judge Moses acknowledged Jones’ behavior cast a “specter of impropriety” over the court and that he clearly violated ethical standards by presiding over dozens of cases involving Freeman’s firm. Judge Moses said Jones “ran roughshod” over judicial codes requiring recusal from matters involving conflicts of interest.
However, Judge Moses rejected a request from Kirkland for sanctions against Van Deelen, noting that while some of his previous claims lacked merit, he had uncovered real misconduct in this situation.
Separately, the Office of the U.S. Trustee is seeking to force Jackson Walker to return millions in fees it received on cases approved by Jones during his undisclosed romantic involvement with Freeman.
Source: Reuters
