Ex-Girardi Keese lawyer briefly threatened with deposition

A federal judge in Chicago threatened Friday to order a former Girardi Keese attorney to be deposed because a declaration he filed with a motion to dismiss another law firm's claim against him over unpaid settlement money questioned factual claims in the case.

U.S. District Judge Matthew Kennelly dropped his threat after Edith R. Matthai, David R. Lira's attorney and a partner with Robie & Matthai, said she would file a revised reply instead.

The exchange occurred during a hearing concerning motions by Lira and former Girardi Keese attorney Keith D. Griffin to dismiss complaints against them by Edelson PC, which served as local counsel in a Girardi Keese lawsuit for plaintiffs whose relatives died in a plane crash in Indonesia.

The plaintiffs were never paid, nor was Edelson, which filed a lawsuit against plaintiffs' attorney Thomas V. Girardi and several other defendants, including Lira and Griffin.

"Edelson believes that all three attorneys -- Girardi, Griffin and Lira -- worked together to embezzle the clients' settlement proceeds, commingle them with attorneys' fees that belong to Edelson, and share in the illicit profits," Edelson attorney Alexander G. Tievsky wrote in court papers.

The former Girardi Keese attorneys also face contempt hearings over alleged conduct in the underlying plane crash lawsuit in the Northern District of Illinois.

Attorneys for the California lawyers have filed motions to dismiss the Edelson lawsuit on slightly different grounds.

The judge said he would likely decide the motions on the papers. Edelson PC v. Thomas Girardi et al., 20-CV07115 (N.D. Ill., filed Dec. 2, 2020).

Lira and Griffin previously defeated Tievsky's motion seeking to take their depositions.

But Kennelly said he would reconsider that decision if Lira's reply motion, including a declaration by the attorney, was included. The judge said the declaration disputes facts in the case about which Edelson sought a deposition.

Unless withdrawn, "the deposition would be back on the table and it's going to be ordered," Kennelly said.

"We will file a revised reply," Matthai replied.

Kennelly also rejected a bid by Griffin's attorney, Ryan D. Saba of Rosen Saba LLP to file a reply memorandum arguing the fiduciary shield doctrine precludes a finding of personal jurisdiction over Griffin.

"The argument was forfeited because it was not raised in the opening brief," Kennelly said.

Griffin and Lira argue they were only employees of Girardi Keese and had no control over whether the Edelson firm or the clients were paid.

In the declaration, Lira denied he received any of the settlement money paid by Boeing Co.

"I have never had an agreement that I would receive any of those funds," Lira wrote.

"I was never entitled to receive any money from the settlements, have never received any money and I do not claim that I am entitled to any money from any future settlement of any of the [Girardi Keese] cases," he added.

Matthai argues the lawsuit against Lira should be subject to a stay pending the outcome of the bankruptcy proceedings against Girardi and his firm in Los Angeles. In re: Thomas Vincent Girardi, 20-BK21020 (C.D. Cal. Bankruptcy Ct, filed Dec. 18, 2020); In re: Girardi Keese, 20-BK21022 (C.D. Cal. Bankruptcy Ct, filed Dec. 18, 2020).

Lira and Griffin have filed claims against Girardi and his firm in the bankruptcy cases.