A recent Law 360 story by Emily Lever, “Claimants Demand That Jackson Walker Repay Fees in Ch. 11”, reports that personal injury claimants in the Chapter 11 case of Kimberly-Clark-affiliated hand sanitizer company 4E Brands Northamerica have asked a Texas court to disgorge fees paid to the debtor's law firm because one of its former attorneys was involved in an undisclosed personal relationship with a bankruptcy judge in the district.  In a motion, the claimants, Barry Green and Carolina Maestas, said the case was tainted by the relationship of 4E Brands' attorney, Elizabeth Freeman of Jackson Walker LLP, with Judge David R. Jones, as well as the judge and the firm's "intentional" failure to disclose that relationship in the court case.  Judge Jones resigned earlier this month amid an ethics probe about that relationship.

Jackson Walker should be kicked off the case and pay back all fees awarded to it, Green and Maestas argued.  "The remedy for such a failure to disclose is disgorgement and sanctions. Intentional failure warrants the harshest sanctions," the motion read.  A separate motion filed asks for U.S. Bankruptcy Judge Marvin Isgur, who is currently overseeing the case, to recuse himself because of his long professional relationship with Judge Jones.

The movants request the court to vacate the order of employment in this case, vacate all orders awarding fees to Jackson Walker and award sanctions and attorney fees, as well as all additional relief that the movants may show themselves entitled.  Because of Jackson Walker's failure to disclose the ethics breach, conversion to a Chapter 7 liquidation should also be on the table, the claimants said.

Judge Jones announced to litigants in a hearing Oct. 6 that he would be stepping away from hearing large, complex Chapter 11 bankruptcies, hours before The Fifth Circuit issued a complaint signed by Chief U.S. Circuit Judge Priscilla Richman   The complaint said there was probable cause that Judge Jones was guilty of misconduct.

The judge heard cases involving clients represented by Jackson Walker LLP while Freeman, his live-in romantic partner, worked there, according to media reports that followed a pro se lawsuit accusing Judge Jones of giving preferential treatment to the firm's clients.  Freeman left Jackson Walker to start her own practice in December, according to her LinkedIn page.  Judge Jones had 1,100 cases on his commercial docket, he said at the time.