The lawyer must wait his turn to prosecute Erika Jayne Girardi, according to the trustee
- Law firms
- Related documents
- Edelson PC sued Tom and Erika Girardi in December
- Trustee says letting case continue would disrupt Girardi Keese bankruptcy
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(Reuters) – A bankruptcy trustee overseeing the estate of Tom Girardi’s late law firm is asking a judge to delay legal action against “Real Housewives of Beverly Hills” star Girardi’s ex-wife, Erika Jayne Girardi.
Chicago law firm Edelson sued the Girardi in federal court in December, alleging they had embezzled settlement funds to finance their “glitz-and-glam” lifestyle. The lawsuit sparked a flood of claims led by Girardi’s former partners that forced Girardi Keese out of business.
Edelson earlier this month asked a Los Angeles bankruptcy judge to allow him to continue his actions against Erika Girardi despite an automatic pause in the case sparked by the bankruptcy of the Girardi company.
But Chapter 7 administrator Elissa Miller said in a filing Tuesday that the stay was necessary for her to investigate whether the law firm’s assets had been fraudulently transferred to the reality TV star.
“Edelson’s motion will disrupt the administration of the GK estate by the GK trustee,” Miller wrote.
U.S. bankruptcy judge Barry Russell has scheduled a Nov. 2 hearing on the matter.
Miller declined to comment. Jay Edelson, founder and CEO of Edelson, said his company was working on a response to Miller’s case.
“One thing the trustee misunderstood is our company’s financial interest in this scandal,” Edelson said in an email. “We are not trying, as the administrator suggested, to ‘cut the line’. On the contrary, our point of view is that customers should first be paid. “
Erika Girardi, represented in the bankruptcy by Evan Borges of Greenberg Gross, opposed Edelson PC’s motion in a filing on Wednesday. Borges did not respond to a request for comment.
Lawyers for Tom Girardi and Girardi Keese have admitted in federal court that the settlement funds at issue in the Edelson lawsuit had not been distributed. Erika Girardi did not respond in this case, and lawyers did not appear in her favor.
Jason Rund, the Chapter 7 administrator overseeing Tom Girardi’s personal property, said in his own Tuesday filing that he had no objection to the Edelson Company suing Erika Girardi as long as Russell retains a “exclusive jurisdiction” to determine whether the assets of Erika Girardi actually belong. to her ex-husband.
The case is In re Thomas Vincent Girardi, US Bankruptcy Court for the Central District of California, 2: 20-bk-21020.
For Elissa Miller: Philip Strok, Kyra Andrassy and Timothy Evanston, by Smiley Wang-Ekvall
For Jason Rund: Timothy Yoo and Carmela Pagay by Levene Neale Bender Yoo & Brill
For Edelson: Rafey Balabanian from Edelson
For Erika Jayne Girardi: Evan Borges from Greenberg Gross
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