Girardi Keese trustee moves to transfer cases, hire counsel

The trustee for Giradi Keese is continuing to clean house for the now-defunct law firm.

Elissa D. Miller of SulmeyerKupetz APC, who was appointed to handle the firm's finances in January, filed a series of motions last week to transfer some cases to new counsel, appoint Girardi Keese's former chief financial officer to appear on behalf of the firm, and hire special counsel to recover assets from Tom Girardi's estranged wife. In re: Girardi Keese, 20-BK12022 (C.D. Cal Bankruptcy Ct, filed Dec. 18, 2020).

On Friday, Miller asked a bankruptcy judge for permission to transfer litigation involving toxic emissions in Paramount, California to The Law Offices of Antony Thomassiam, which would collaborate with The Law Offices of Tim D. Wright. Girardi Keese represents about 137 plaintiffs in the case.

Miller also doubled down on a motion she filed in March to designate Chris Kamon, Girardi Keese's former chief financial officer, to appear on the firm's behalf in the bankruptcy proceedings. Kamon's counsel had argued that because he intends to assert his Fifth Amendment rights in relation to a federal criminal investigation involving Girardi Keese in the Northern District of Illinois, "the proposed appointment of Mr. Kamon would serve no purpose: Neither the trustee nor the creditors would obtain the information they seek."

But in a filing last week, Miller responded that the court's designation of Kamon was not futile. Even if Kamon invokes the Fifth Amendment, Miller wrote she "will still be able to draw negative inferences from his responses, which may assist her in potential future litigation. Moreover, Kamon will still be required to produce documents of the debtor that may be in his possession, and he cannot refuse to comply by asserting his Fifth Amendment privilege."

Not long after the trustee for Tom Girardi's personal estate chose special counsel to recover estate assets from Erika Jayne, Girardi's estranged wife, Miller also chose her own special counsel to do the same.

Miller asked a U.S. bankruptcy court last week for permission to hire Beverly Hills attorney Ronald Richards.

Miller said in her motion to hire Richards it is possible Girardi Keese assets "were transferred to Erika Girardi (aka Erika Jayne), Thomas Girardi's spouse, either directly or to one or more people or entities on her behalf, or to other transferees of assets from Erika Girardi or her related entities (the 'Erika transfers'). The trustee believes that the Erika transfers will be recoverable under applicable state and federal law."

If the court approves the hire, Richards would represent her "in connection with investigating and recovering the Erika transfers," Miller's motion said. "Richards will handle all matters relating to the Erika transfers, including, but not limited to, investigation, written discovery, depositions, court appearances, preparation of pleadings and other filings, trial and overall prosecution of any appropriate actions on behalf of the trustee."

Peter J. Mastan of Dinsmore & Shohl LLP, who represents Erika Jayne, did not respond to a request for comment by press time.

In an interview Monday, Richards, a civil and criminal defense attorney, said Miller is "one of the best trustees around, and her dedication to this estate is unparalleled."

"I'm honored to be considered by her," he added.

Miller's move came less than two weeks after the trustee for Tom Girardi's personal estate, Jason M. Rund of Sheridan & Rund PC, asked the same court to hire special counsel to recover estate assets from Jayne. Last week, Miller said in a statement to the court that she did not oppose Rund's choice of counsel, Los Angeles-based law firm Abir Cohen Treyzon and Salo LLP, even though she recently filed an adversary proceeding against the firm. Miller had accused the firm of trying to solicit Girardi's clients in a case that is widely expected to net a settlement upward of $1 billion.

Miller asked the court to clarify that if it approves Rund's hire that approval "does not bind or affect the Girardi Keese trustee or the Girardi Keese estate in any way, or preclude the Girardi Keese trustee or the Girardi Keese estate from pursuing any of their rights, claims, demands, and causes of action that they may pursue against Erika or third-party transferees of Erika."