{"id":132030,"date":"2025-03-14T02:56:08","date_gmt":"2025-03-14T02:56:08","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/legal\/relationship-risk-prior-representation-not-enough-to-merit-disqualification-external-ethics-advice-avoided-trumps-law-firm-order-blocked\/"},"modified":"2025-03-14T02:56:08","modified_gmt":"2025-03-14T02:56:08","slug":"relationship-risk-prior-representation-not-enough-to-merit-disqualification-external-ethics-advice-avoided-trumps-law-firm-order-blocked","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=132030","title":{"rendered":"Relationship Risk \u2014 Prior Representation Not Enough to Merit Disqualification, External Ethics Advice Avoided, Trump&#8217;s Law Firm Order Blocked"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div id=\"post-8695\">\n<p>\t<!-- .entry-header --><\/p>\n<div class=\"entry-content\">\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-6639\" src=\"https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2024\/01\/2024_ethics_rules.jpg\" alt=\"\" width=\"480\" height=\"273\" srcset=\"https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2024\/01\/2024_ethics_rules.jpg 480w, https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2024\/01\/2024_ethics_rules-300x171.jpg 300w, https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2024\/01\/2024_ethics_rules-230x131.jpg 230w, https:\/\/bresslerriskblog.com\/wp_bresslerriskblog\/wp-content\/uploads\/2024\/01\/2024_ethics_rules-350x199.jpg 350w\" sizes=\"(max-width: 480px) 100vw, 480px\"\/><\/p>\n<p>\u201c<a href=\"https:\/\/news.bloomberglaw.com\/bankruptcy-law\/jackson-walker-rejected-judge-romance-ethics-advice-report-says\"><strong>Jackson Walker Rejected Judge Romance Ethics Advice, Report Says<\/strong><\/a>\u201d \u2014<\/p>\n<ul>\n<li>\u201cJackson Walker LLP rebuffed advice from its own outside ethics expert to disclose a relationship between a partner and a bankruptcy judge, instead opting for a confidentiality agreement barring discussions of the romance, according to a government-commissioned report.\u201d<\/li>\n<li>\u201cThe Texas law firm failed to uphold disclosure obligations under bankruptcy law, an expert report filed in Thursday [1\/30] in the US Bankruptcy Court for the Southern District of Texas found. The firm exhibited a \u2018persistent pattern of ignoring, obfuscating and concealing\u2019 a relationship between its former partner, Elizabeth Freeman, and former Houston bankruptcy Judge David R. Jones, according to the report.\u201d<\/li>\n<li>\u201c\u2018Unfortunately, at every important moment in this matter, JW chose not to disclose but instead to conceal what it knew or had good reason to know about the Relationship,\u2019 wrote the report\u2019s author, Temple University law professor Jonathan Lipson.\u201d<\/li>\n<li>\u201cJackson Walker and the Justice Department\u2019s bankruptcy watchdog, the US Trustee, each moved to strike the other\u2019s expert reports from being used in litigation. The reports were filed in a lawsuit where the US Trustee\u2019s office has said Jackson Walker breached its ethical duties, a charge the firm rejects.\u201d<\/li>\n<li>\u201cThe firm regularly represented clients in cases Jones oversaw. A trial set for April will decide whether as much as $23 million in fees awarded to Jackson Walker should be vacated and whether the firm can be sanctioned.\u201d<\/li>\n<li>\u201cJones resigned soon after the relationship became public in late 2023 but litigation over the scandal remains pending. Freeman left Jackson Walker in December 2022.\u201d<\/li>\n<li>\u201cOnce the firm learned of an ongoing relationship between Jones and Freeman, by at least February 2022, it had a duty to amend its bankruptcy disclosures in cases where it implied or said there were no such connections, Lipson concluded.\u201d<\/li>\n<li>\u201cInstead of disclosing or withdrawing from cases, Jackson Walker \u2018decided to further bury evidence\u2019 of the relationship through a confidential withdrawal agreement between the firm and Freeman in November 2022, Lipson said.\u201d<\/li>\n<li>\u201cJones\u2019 own \u2018erroneous interpretation of his ethical obligations,\u2019 is separate from Jackson Walker\u2019s duty to investigate allegations of an ethical conflict, disclose connections, or withdraw from those cases, Lipson said.\u201d<br \/>Conflicts and Confidentiality\u201d<\/li>\n<li>\u201cLipson cited expert opinions Jackson Walker received from Holland &amp; Knight LLP attorneys in 2021 who were tapped by the Texas firm to provide ethics opinions about the relationship.\u201d<\/li>\n<li>\u201cThe Holland &amp; Knight team advised Jackson Walker in June 2022 that the conflict should be reported or it should withdraw from cases before Jones, Lipson\u2019s report said. Jackson Walker did neither, he said.\u201d<\/li>\n<li>\u201cThe firm didn\u2019t tell its co-counsel, Kirkland &amp; Ellis LLP, and didn\u2019t ask if clients consented either, he said. No amendments were made to the firm\u2019s bankruptcy disclosures, Lipson said.\u201d<\/li>\n<li>\u201cLipson also said said Freeman\u2019s connections can be imputed to Jackson Walker under Texas rules.\u201d<\/li>\n<\/ul>\n<p>\u201c<a href=\"https:\/\/www.law360.com\/legalethics\/articles\/2303370\/no-dq-for-norton-rose-in-texas-competition-row-court-says\"><strong>No DQ For Norton Rose In Texas Competition Row, Court Says<\/strong><\/a>\u201d \u2014<\/p>\n<ul>\n<li>\u201cNorton Rose Fulbright shouldn\u2019t be disqualified in a competitive spat between two industrial maintenance companies even though the firm has represented both entities in recent years, a state appeals court has ruled.\u201d<\/li>\n<li>\u201cIndustrial maintenance provider Brown &amp; Root Industrial Services LLC made only \u2018conclusory statements of similarities\u2019 about the firm\u2019s current representation of its competitor, CAM Industrial Solutions LLC, the Fourteenth Court of Appeals wrote in a brief opinion Tuesday.\u201d<\/li>\n<li>\u201cWithout more specific facts, the court said it can\u2019t rule that Norton Rose Fulbright\u2019s prior representation of Brown &amp; Root violates the Texas Disciplinary Rules of Professional Conduct Rule 1.09, which bars an attorney \u2018who personally has formerly represented a client in a matter\u2019 from representing \u2018another person in a matter adverse to the former client \u2026 if it is the same or a substantially related matter.&#8217;\u201d<\/li>\n<li>\u201cCAM retained Norton Rose Fulbright in the Chambers County suit, an action Brown &amp; Root alleged presented a conflict of interest because the firm represented Brown &amp; Root for eight years beginning in 2016.\u201d<\/li>\n<li>\u201c\u2018[Norton Rose\u2019s] representation of Brown &amp; Root included business advice and consulting, including on issues specifically related to Brown &amp; Root\u2019s industrial maintenance business line,\u2019 Brown &amp; Root wrote in its August 2024 petition to the Fourteenth Court of Appeals.\u201d<\/li>\n<li>\u201c\u2018In the context of that attorney-client relationship, Brown and Root shared internal business information with NRF, such as client information, contractual information, and personal employee information specifically related to Brown &amp; Root\u2019s industrial maintenance business.&#8217;\u201d<\/li>\n<li>\u201cBrown &amp; Root wrote that the firm was continuing to bill it as recently as August 2023. It moved to disqualify CAM\u2019s attorneys in May 2024, which the trial court denied three months later.\u201d<\/li>\n<li>\u201cThe Fourteenth Court of Appeals on Tuesday outlined Brown &amp; Root\u2019s allegations, which included that the company consulted with two Norton Rose partners about corporate labor and employment law in relation to a specific bid the company was seeking. As part of that consultation, the firm helped Brown &amp; Root set up a Canadian business entity, according to the company.\u201d<\/li>\n<li>\u201cThe court wrote that those facts are not specific enough to determine that Norton Rose lawyers \u2018could have acquired confidential information concerning a prior client that could be used either to that prior client\u2019s disadvantage or for the advantage of the lawyer\u2019s current client or some other person,\u2019 as the disciplinary rule dictates.\u201d<\/li>\n<\/ul>\n<p>\u201c<a href=\"https:\/\/www.politico.com\/news\/2025\/03\/12\/perkins-coie-trump-executive-order-025783\"><strong>Judge blocks key provisions of Trump\u2019s bid to punish Democratic-linked law firm<\/strong><\/a>\u201d \u2014<\/p>\n<ul>\n<li>\u201cPresident Donald Trump\u2019s retaliation against a prominent Democratic-linked law firm is likely unconstitutional, a federal judge ruled Wednesday.\u201d<\/li>\n<li>\u201cU.S. District Judge Beryl Howell blocked the Trump administration from enforcing central provisions of an executive order that seeks to punish the law firm, Perkins Coie, by barring its attorneys from interacting with federal agencies or even entering federal buildings.\u201d<\/li>\n<li>\u00a0\u201cHowell said the \u2018retaliatory animus\u2019 of Trump\u2019s order is \u2018clear on its face\u2019 and appears to violate constitutional restrictions on \u2018viewpoint discrimination.\u2019 The executive order, which Trump issued last week, \u2018runs head on into the wall of First Amendment protections,\u2019 the judge concluded.\u201d<\/li>\n<li>\u201cHowell noted that the order would harm not only the firm\u2019s 1,200 lawyers \u2014 most of whom had nothing to do with the Russia probe \u2014 but its 2,500 non-lawyer employees, from IT staff to secretaries.\u201d<\/li>\n<li>\u201cThe judge said Trump\u2019s order was also flawed because it was issued without any notice to the firm or due process to challenge his determination.\u201d<\/li>\n<li>\u201c\u2018This may be amusing in \u2018Alice in Wonderland\u2019 where the Queen of Hearts yells, \u2018Off with their heads!\u2019 at annoying subjects \u2026 and announces a sentence before a verdict,\u2019 Howell said, \u2018but this cannot be the reality we are living under.&#8217;\u201d<\/li>\n<\/ul><\/div>\n<p><!-- .entry-content --><\/p>\n<p>\t<!-- .entry-footer --><\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>\u201cJackson Walker Rejected Judge Romance Ethics Advice, Report Says\u201d \u2014 \u201cJackson Walker LLP rebuffed advice from its own outside ethics expert to disclose a relationship between a partner and a bankruptcy judge, instead opting for a confidentiality agreement barring discussions of the romance, according to a government-commissioned report.\u201d \u201cThe Texas law firm failed to uphold [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":132031,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97],"tags":[11282,28470,22002,47771,16127,21585,4524,12685,41669,6694,12906,17663,7345,11115,11678],"dealstore":[],"offerexpiration":[],"class_list":["post-132030","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","tag-advice","tag-avoided","tag-blocked","tag-disqualification","tag-ethics","tag-external","tag-firm","tag-law","tag-merit","tag-order","tag-prior","tag-relationship","tag-representation","tag-risk","tag-trumps"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - 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