On Thursday, February 27, 2025, Bloomberg Law reported that Jackson Walker LLP’s managing partner, C. Wade Cooper, expressed significant concerns in 2022 regarding the implications of a bankruptcy partner’s undisclosed romantic involvement with a federal judge. This situation came to light during a recent hearing in a Texas bankruptcy court, where discussions centered around the potential recovery of approximately $23 million in fees earned by the firm due to the failure to disclose the relationship.
The hearing involved the U.S. Trustee’s office, which has accused Jackson Walker of violating ethical obligations by not revealing the relationship between Elizabeth Freeman, a former bankruptcy partner, and Judge David R. Jones, who presides over bankruptcy cases in Houston. The firm frequently appeared before Judge Jones in significant bankruptcy matters.
The internal communications, specifically an email from Cooper, surfaced as part of the ongoing litigation in the U.S. Bankruptcy Court for the Southern District of Texas. During the hearing, it was noted that the email illustrated Cooper’s understanding of the potential fallout from the revelation of the relationship. He highlighted the firm’s vulnerabilities and the public perception issues that could arise from such a disclosure.
Freeman had previously informed the firm in March 2021 that her connection with Jones was merely historical, stating there was no ongoing relationship. However, this assertion changed when a firm litigation partner uncovered new allegations in January 2022, suggesting that Freeman and Jones had resumed their relationship. Subsequently, Freeman acknowledged the rekindled romance in late March 2022.
In light of these developments, Cooper’s email to partners Bruce Ruzinsky, Patrick Cowlishaw, and William Jenkins raised critical questions about how the firm would respond to media inquiries following any public disclosure of the relationship. He specifically queried the implications of describing Freeman’s relationship with Jones as “close personal,” voicing concerns over possible negative perceptions and the effect on the firm’s reputation.
The firm had initially been made aware of romantic allegations in March 2021 by a shareholder of McDermott International, a bankrupt engineering company. The shareholder, Michael Van Deelen, sought to disqualify Judge Jones from the company’s Chapter 11 proceedings, alleging bias in favor of McDermott and its legal representatives, which included Jackson Walker.
In his April 2022 email, Cooper sought clarity on various aspects of the situation, including the meaning of a “close personal relationship,” the accuracy of Van Deelen’s claims, and the reasons behind the lack of earlier disclosure. He also raised concerns about how the relationship might have influenced the firm’s bankruptcy practice in Houston and the potential for adverse effects on ongoing and past legal cases.
Cooper questioned the risks associated with making any public disclosure, particularly in relation to the McDermott case. He expressed apprehensions about the possibility of clients filing claims against the firm for additional expenses arising from the reopening of cases linked to the disclosed relationship.
Despite the gravity of the situation, Jackson Walker did not disclose the relationship in early 2022, and it remained unpublicized until 2023. Freeman ultimately agreed to leave the firm in December 2022. Following the emergence of the relationship in public discourse, Judge Jones resigned from his position in October 2023.
Throughout the proceedings, Jackson Walker has maintained that it acted responsibly and appropriately in its handling of the situation. The firm, along with Freeman’s attorney, Tom Kirkendall, has declined to comment further on the matter. The U.S. Trustee’s office has indicated that the disputes regarding ethics reports and their implications will be revisited during an expected two-week trial, which has been postponed until May.
Source: Bloomberg Law
