$25M is largest law firm claim yet against Girardi Keese

As Girardi Keese is hit with a $25 million claim over unpaid referral fees, the list of law firms that say Thomas V. Girardi has duped them continues to grow.

Owen, Patterson & Owen LLP, a personal injury law firm in Los Angeles, filed the $25 million claim last week in Girardi Keese's bankruptcy proceeding. The claim stems from fee-sharing agreements made between 2002 and 2007 on pharmaceutical mass tort cases.

The agreement from 2002, signed by Gregory J. Owen and Girardi, references a meeting held in Dallas, Texas.

"In attendance were you [Girardi], Tom and Erika Girardi and me," the agreement stated. "I will not attempt, nor would it be possible, to put in writing the details covered during our meeting. Our agreement is quite simple. Girardi & Keese and Owen, Patterson & Owen, upon resolution of cases referred by you, will pay to you fifty percent of the attorneys' fees remaining after your referral lawyers, if any, are compensated."

Questions have been raised in the bankruptcy proceedings about Girardi's wife, also known by her stage name, Erika Jayne, and whether Girardi transferred assets to her.

Girardi, who not long ago lived a lavish lifestyle while representing plaintiffs in major litigation, faces claims for millions of dollars as well as allegations he stole money from clients and law firms.

The claims register in the Girardi Keese bankruptcy case reveals a host of lawyers seeking money from the firm. But the Owen, Patterson & Owen claim appears to be the largest to date.

In Girardi's personal bankruptcy case, his total liabilities are approximately $57 million. His house in Pasadena has been listed for sale at $13 million. In a filing on Thursday, Jason M. Rund, the trustee for Girardi's personal bankruptcy, said he also intends to sell Girardi's property in La Quinta after necessary repairs and maintenance. In re: Thomas Vincent Girardi, 20-BK21020 (C.D. Bankruptcy Ct., filed Dec. 18, 2020).

Recently, U.S. Bankruptcy Judge Barry Russell of Los Angeles granted motions filed by the firm's trustee, Elissa D. Miller of SulmeyerKupetz APC, to transfer some of Girardi's clients to other firms.

But another battle over clients in the Porter Ranch gas leak litigation is underway. Miller has an adversary proceeding against Abir Cohen Treyzon and Salo LLP, commonly referred to as ACTS, in Russell's court.

In January, Miller filed her action against ACTS, alleging the law firm -- which has hired multiple attorneys from Girardi Keese -- was improperly soliciting Girardi Keese's clients in the Porter Ranch case expected to net a settlement of about $2 billion.Miller v. Abir Cohen Treyzon Salo, LLP, 2:21-ap-01019-BR (C.D. Bankruptcy Ct, filed Jan. 25, 2021).

In a filing on Thursday, ACTS wrote that a submitted draft order from Miller is seeking to prevent clients, including former Girardi clients, from retaining their counsel of choice. The court directed ACTS not to communicate with Girardi's former clients.

But ACTS argued Miller seeks to prevent ACTS from communicating with people who voluntarily contact the firm.

"Defendants respectfully request that any entered order account for voluntary requests (through no initial acts of solicitation by ACTS) from debtor's former clients (or any other individuals) that reach out to ACTS on their own accord," ACTS responded to Miller's draft order.

"Plaintiff's draft order fails to account for the fact that, as the trustee is well aware, it is clients and clients alone that decide who will represent them. It is not this Honorable Court, not ACTS, and, certainly, not the trustee that can make that decision."

Miller did not respond to a request for comment.

A hearing is scheduled for June 22.