A former JLL industrials and logistics agent, James Jorgensen, is at the centre of an escalating legal and corporate crisis that has reshaped the leadership of the global property giant. According to the Australian Financial Review, court filings reveal Jorgensen threatened legal action against a woman who had lodged a complaint about his conduct, despite allegedly acknowledging that his behaviour was morally unacceptable.
Documents submitted in the Federal Court paint a stark contrast: while Jorgensen allegedly disputed aspects of the woman’s account, JLL’s own filings state he admitted to using alcohol as a “dysfunctional coping mechanism,” described his conduct as a major personal and professional failure, and conceded that the pattern of behaviour was “dangerous and completely unacceptable.”
The fallout from these complaints contributed to a major rupture within JLL’s Australian leadership. The handling of the allegations against Jorgensen ultimately led to the dismissal of JLL Australia chief executive Dan Kernaghan, who is now suing the company, claiming his termination was unlawful.
The controversy is part of a broader reckoning within the commercial real estate sector, which has faced intensifying scrutiny over workplace culture, particularly at JLL and its key competitor CBRE. Claims of harassment, inappropriate conduct and aggressive internal dynamics have placed sustained pressure on senior management across the industry.
According to court filings, the first complaint against Jorgensen surfaced in June, prompting his suspension on full pay. An internal investigation found some allegations substantiated, others partially substantiated and some unproven. Kernaghan, after seeking legal advice, opted to issue Jorgensen a first and final warning rather than terminate him. The sanctions were significant: removal of managerial responsibilities, no contact with the complainant, alcohol bans at work events and the withdrawal of legal threats against the complainant.
However, a second complaint soon followed, this time regarding a consensual relationship between Jorgensen and another employee, as well as concerns about how the initial complaint had been managed. The matter was escalated to JLL’s global leadership, who instructed Kernaghan to terminate Jorgensen.
Tension intensified when, according to Kernaghan’s claim, JLL’s global chief legal officer allegedly told colleagues that Kernaghan should have dismissed Jorgensen earlier, regardless of legal advice. Within days, Kernaghan himself was dismissed.
JLL is now facing multiple lawsuits, not only from Kernaghan but also from former agents who allege they were prematurely terminated and unfairly labelled for misconduct, along with former HR executive Julie Skinner, who claims she was sacked without being informed she was under investigation.
As the legal battles unfold, the situation underscores the urgent need for cultural, governance and leadership reforms within the commercial property sector. The case continues to raise questions about how large firms manage internal complaints, balance legal risk and moral responsibility, and navigate the consequences of leadership decisions under public scrutiny.
