Potential counsel to Girardi trustee faces opposition

Beverly Hills attorney Ronald N. Richards has attracted a following on Twitter documenting the legal travails of plaintiff's attorney Thomas V. Girardi and has paid particular attention to the possible involvement of his wife, Erika Jayne.

An attorney representing Jayne, a celebrity due to her starring role on the Bravo series, "The Real Housewives of Beverly Hills," filed a motion this week opposing Richards' possible appointment as special litigation counsel for the trustee handling her husband's bankrupt law firm.

If approved by U.S. Bankruptcy Judge Barry Russell of Los Angeles, Richards' job would be to determine whether any Girardi Keese assets were transferred to Erika Jayne, also known as Erika Girardi, either directly or to people or entities on her behalf.

Peter J. Mastan, an attorney with Dinsmore & Shohl LLP who represents Erika Girardi, argued in a motion that Richards should be rejected as Trustee Elissa D. Miller's special counsel due to conflict of interest because of his involvement in another case against both Girardis and others. He argues Richards has an actual conflict of interest with the trustee for the Girardi Keese estate, and the application to serve as special counsel should be denied.

Further, Mastan takes aim at Richards personally, citing the Beverly Hills attorney's often colorful mix of court documents about the Girardi litigation and pointed commentary critical of both Girardis.

"Mr. Richards has also commented on Erika's marital residence, her current residence, posted pictures of Mr. Girardi alongside pictures of Bernie Madoff and Pete Rose, posted pictures and commentary about an alleged burglary at the Girardi's marital residence, and repeatedly ended his tweets with the hashtag 'GirardiFraud'," Mastan wrote.

"This statement alone reflects Mr. Richards' bias and prejudgement of Erika," he added. In re: Girardi Keese, 20-BK21022 (C.D. Cal. Bankruptcy Ct, filed Dec. 18, 2020).

If Richards remains on the case, Mastan is seeking a gag order to prevent the attorney from making additional comments following his appointment.

"A lawyer for a bankruptcy trustee is held to a higher standard than a social media commentator," Mastan wrote.

Richards denied there is any conflict, noting the claim in a lawsuit filed by two law firms in Los Angeles County Superior Court has been dropped.

On Thursday, Russell remanded the case to Los Angeles County Superior Court, and he noted the plaintiffs would not be pursuing their now-dropped fraudulent transfer claim -- which belongs to the Girardi Keese bankruptcy trustee.

Richards took Mastan's critique of his barbed commentary before the appointment as a compliment.

"It is always flattering when the target of a special counsel motion tries to dodge the appointment by objecting," Richards wrote in an email. "Generally, protected First Amendment activity by anyone prior to an appointment is typically irrelevant."

Mastan noted in his opposition he was not objecting to the appointment by Jason M. Rund, the trustee for Tom Girardi's personal bankruptcy, of Abir Cohen Treyzon Solo LLP. In re: Thomas Vincent Girardi, 20-BK21020 (C.D. Cal. Bankruptcy Ct, filed Dec. 18, 2020).

Russell approved the Abir Cohen appointment to investigate any transfers from Tom Girardi to Erika Girardi on Wednesday.

"The fact that the target is OK with an attorney in the Thomas Girardi bankruptcy pursuing transfers from Thomas Girardi to her has no bearing on the transfers from Girardi Keese to Erika Girardi," Richards responded.

"Noticeably missing from the objection was any declaration from Erika Girardi denying the receipt of any transfers," he added.

Miller, an attorney with SulmeyerKupetz who is the Girardi Keese trustee, said in a statement she would be responding to Mastan's motion.