Jackson Walker Romance Trial Is a ‘Long Way’ Off, Judge Says

A Justice Department unit’s push to hold Jackson Walker LLP accountable for failing to disclose a secret romance between an ex-partner and a bankruptcy judge is nowhere near a trial date, a federal judge said.

The trial would address, in part, the Texas law firm’s argument that the US Trustee’s office has no constitutional standing to claw back fees paid to the firm, and only companies that paid the fees can take those actions, an attorney for Jackson Walker said at a status conference Tuesday in the US Bankruptcy Court for the Southern District of Texas.

The labyrinth of complex and growing legal issues and procedures in the dispute comes as proposed settlements have been halted by a district court.

“We’re a long way from getting to trial,” Judge Eduardo Rodriguez said Tuesday.

The status hearing comes after Jackson Walker last month lost its bid for a jury trial over the litigation.

The US Trustee has alleged the firm concealed the romance between ex-partner Elizabeth Freeman and former bankruptcy judge David R. Jones. It’s now looking to reverse more than $23 million in fees the firm earned in at least 34 cases involving Jones.

More than two years have passed since the US Trustee first brought the case.

Judge Alia Moses of the US District Court for the Western District of Texas removed the fee disputes from bankruptcy court in April in an effort to expedite the litigation, but handed some of them back to Rodriguez last month. She also instructed Rodriguez to issue a report and recommendation.

Freeman and Jones had been in a secret relationship for years. The watchdog unit said Jackson Walker, which regularly appeared before Jones in large Chapter 11 cases, breached its ethical duties by not disclosing the romance.

Jackson Walker has said it acted properly.

The firm on Tuesday reiterated its stance that the US Trustee lacks standing to claw back fees on behalf of third parties, while the government said its request is a form of monetary sanction within the court’s power. After debate, Rodriguez said the standing issue will be addressed at trial.

But Rodriguez said even if he does find that the US Trustee can’t disgorge the fees itself, the court itself has the power to do so.

Attorneys for several bankruptcy cases also expressed frustration over the status of their settlements with Jackson Walker, and questioned how a trial could move forward without Rodriguez addressing them in some way.

Jackson Walker has filed private settlement motions with various bankruptcy estates. The US Trustee’s office noted that Moses last month abated those settlement requests, calling them attempts to “circumvent the process” and “stymie the U.S. Trustee’s case” before core allegations of judicial misconduct are litigated.

Several parties said forcing estates to sit through a lengthy and expensive trial after they have secured favorable settlements is prejudicial to creditors and erodes recoveries.

“There is no reason whatsoever that Sungard should have to go forward and sit in this courtroom for a three-week or four-week trial that’s going to cost hundreds of thousands of dollars when we have a 93% settlement,” said Cole Schotz PC attorney Daniel F. X. Geoghan, representing the plan administrator for Sungard AS New Holdings LLC.

Attorneys for the US Trustee’s office pushed back, saying their efforts are meant to vindicate the whole bankruptcy system and it’s not trying to recover funds on behalf of private parties.

Jones’ and Freeman’s romantic involvement—and co-ownership of a house—remained under wraps until October 2023, when an anonymous letter became public alleging the romance was influencing the judge’s rulings. Jones, once the most popular judge in the country for large Chapter 11 cases, announced his resignation shortly thereafter.

The trial could be further complicated, with attorneys for Jones and Freeman saying Tuesday that their clients won’t testify because they’re under criminal investigation.

Ben Finestone of Quinn Emanuel Urquhart & Sullivan, an attorney for Jones, said he plans to try to quash any subpoena pushing his client to testify.

A trial could include nearly 50 potential witnesses and last at least 20 days, with the government’s main case estimated to last at least 15, a Jackson Walker attorney estimated.

“Everything in this case is complicated,” Rodriguez said.

Jackson Walker is represented by Norton Rose Fulbright US LLP and Rusty Hardin & Associates LLP.

The case is In Re: Professional Fee Matters Concerning the Jackson Walker Law Firm, Bankr. S.D. Tex., No. S.D. Tex., hearing 12/9/25.