In a new twist in high-stakes corporate bankruptcies, texts between former Jackson Walker LLP attorney Elizabeth Freeman and her colleague Veronica Polnick have come to light, shedding insight into how Freeman’s secret relationship with then-Judge David R. Jones may have shaped the assignment of prominent cases. Freeman’s message—“Talked to Jones. He’s got us”—was sent just days before JCPenney filed its Chapter 11 bankruptcy in May 2020, adding to scrutiny around venue selection in Texas’s high-profile bankruptcies.

These texts point to potential “venue shopping” to place complex bankruptcies in the hands of favored judges, often a tactic to navigate judicial temperament or procedural style. Freeman and Jones, who had lived together since 2017, were well-acquainted; she even referred to Jones as “softening up” for the JCPenney case in advance.

Along with other significant cases, Jackson Walker served as local counsel alongside the lead firm Kirkland & Ellis LLP in the JCPenney bankruptcy. Filing the case in Corpus Christi, a location within the Southern District of Texas, ensured assignment to Jones under then-current rules unless specifically labeled “complex.”

Freeman’s texts detail her strategic considerations—Jones’ colleague Judge Marvin Isgur was seen as a “process hawk,” potentially a stricter road for companies seeking more leniency. Meanwhile, as Freeman anticipated, Ultra Petroleum’s concurrent filing did fall to Isgur. At the same time, JCPenney’s case was deliberately routed to Jones, who later designated it as complex himself, retaining control over the proceedings.

The U.S. Trustee, the Justice Department’s bankruptcy watchdog, is now challenging fees Jackson Walker received in cases before Jones during Freeman’s tenure, arguing the firm failed to disclose her relationship with the judge. Amid mounting legal actions and a federal criminal investigation, the case has stirred Houston’s bankruptcy community, leading to disciplinary referrals and Jones’ resignation from the bench in late 2022.

This complex legal drama points to longstanding concerns over intradistrict venue shopping within the Southern District of Texas. Judge Isgur remarked in a 2022 podcast that rules were revised to counter “perception and reality” issues tied to fairness and public trust in the judicial process. While Freeman left Jackson Walker in 2022, the lasting implications of her relationship with Jones have spotlighted the ethical duties of transparency and disclosure, raising questions that resonate across the legal community.