Bankruptcy Judge Romance Litigant Urges Court to Let Suit Stand

Jackson Walker LLP, Kirkland & Ellis LLP, and a former Texas bankruptcy judge’s efforts to toss a lawsuit stemming from a romantic relationship disclosure dispute are being challenged by the person who made the claims.

Michael Van Deelen, a shareholder in the 2020 McDermott International Inc. Chapter 11, argued on Wednesday that four motions to dismiss his lawsuit should be denied. He also said an additional motion for sanctions should be denied because they weren’t warranted even if the case wasn’t dismissed.

Former Judge David R. Jones of the US Bankruptcy Court for the Southern District of Texas oversaw and mediated cases involving Jackson Walker and its onetime attorney Elizabeth Freeman while living with her and hiding the relationship, Van Deelen said in his original complaint. He also accused Jackson Walker and Kirkland, which worked together on several bankruptcies including McDermott, of helping conceal the romance and not disclosing any potential conflict of interest. Freeman was also named as a defendant.

All of the defendants, including the law firms and the judge, have separately moved to dismiss the case. Kirkland also asked the US District Court for the Southern District of Texas in March to impose sanctions over Van Deelen’s Racketeer Influenced and Corrupt Organizations Act claims.

“The RICO claims were asserted as part of many other claims, including fraud, breach of fiduciary duty and professional negligence,” according to Van Deelen’s new court filing opposing Kirkland’s sanction request. The RICO claims weren’t improperly asserted, they were warranted by existing law, and were supported by evidence, he said.

Van Deelen and his attorneys conducted investigations before filing the lawsuit and found “numerous misleading federal court papers that failed to disclose the inappropriate relationship” between Jones and Freeman, according to a court filing.

Jones has sought judicial immunity, but Van Deelen said nonjudicial acts aren’t shielded. A failure to disclose the relationship and Jones’ failure to recuse himself from cases involving Freeman were nonjudicial acts that amounted to “extreme and egregious misconduct,” Van Deelen said.

Kirkland is represented by Beck Redden LLP and Hueston Hennigan LLP. Jackson Walker is represented by Rusty Hardin & Associates LLP. Van Deelen is represented by Bandas Law Firm PC. Jones is represented by McKool Smith PC. Freeman is represented by the Law Office of Tom Kirkendall.

The case is Van Deelen v. Jones, S.D. Tex., No. 23-cv-03729, response to motion to dismiss 5/8/24.