Yes, it has happened, but quite infrequently. The cases where a justice has recused himself, though, usually involve a financial conflict of interest, not a personal friendship with one of the parties or a lawyer arguing the case.
If the above example doesnt work, think of any other scenario where a Justice (or multiple Justices) might have the APPEARANCE of not be able to render a fair and just ruling, because of their affiliation with the defendant or plaintiff ...
This is especially a sticky wicket for the HIGHEST Court in the land, where cases have NO WHERE ELSE to go for appeal. Justice is suppose to be blind, but the Justices are human, and despite their oaths and experience, still subject to partiality. The choices may be federal grand jury or a promotion of a Justice as temporary Chief Justice for impartiality for one, particular case.
Do we know if Alito has met with Orly?