The lawyer must wait his turn to prosecute Erika Jayne Girardi, according to the trustee

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Singer and actress Erika Jayne at the 2017 American Music Awards. REUTERS / Danny Molochok

  • 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 has asked a Los Angeles bankruptcy judge to allow him to pursue his claims against Erika Girardi despite an automatic pause in the case triggered by the bankruptcy of the firm Girardi.

But Elissa Miller, administrator of Chapter 7, said in a Tuesday deposit that the stay is necessary for her to investigate whether the assets of the law firm were 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 taking legal action against Erika Girardi as long as Russell retains “exclusive jurisdiction” to determine whether Erika Girardi’s assets really 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

Read more:

Erika Jayne Girardi changes lawyer as Dinsmore leaves case again

Judge authorizes lawyer to investigate alleged transfers to Tom Girardi’s wife

Girardi, company forced to liquidate Chapter 7 while the judge weighs on the appointment of the guardian

Tom Girardi and reality TV star’s wife sued for alleged theft of Lion Air settlement funds


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