Girardi bankruptcy trustee defends special counsel

The trustee in the Girardi Keese bankruptcy called "factually defective" opposition to Beverly Hills attorney Ronald N. Richards joining the case as special counsel to find any assets transferred from the law firm to Tom Girardi's wife, a professional celebrity and entertainer.

Richards has gained thousands of followers on Twitter for his commentary on allegations that the plaintiffs' attorney stole millions of dollars from clients. He is also a regular commentator on the possible involvement of Girardi's wife and "Real Housewives of Beverly Hills" celebrity Erika Girardi, also known as Erika Jayne.

Peter J. Mastan of Dinsmore & Shohl LLP represents Erika Girardi. He argued that U.S. Bankruptcy Judge Barry Russell should reject Richards' appointment as special counsel because of his involvement in another case against both Girardis and because of his social media commentary. Richards' comments reflect a bias and prejudgment of Erika Girardi, Mastan wrote.

In a reply Tuesday, bankruptcy trustee Elissa D. Miller called Mastan's objection fatally defective and said it should not be considered.

"First, the creditors represented by the Richards Firm are not pursuing fraudulent transfer claims that belong to the estate," Miller's motion stated. "More specifically, the trustee and the creditors represented by the Richards Firm have agreed that only the estate will pursue fraudulent transfer claims."

Mastan argued in his objection that the bankruptcy court should issue a gag order if Richards is allowed to work on the case. Miller called that request irrelevant. In re: Girardi Keese, 20-BK21022 (C.D. Cal. Bankruptcy Ct, filed Dec. 18, 2020).

Richards said in an email that he does not believe Erika Girardi has standing to interfere with Miller's choice of counsel.

"The baseless allegations of a conflict were resolved by the subsequent orders of the court and dismissals of the claims relating to that allegation. Attorneys, prior to retention in a specific case, like all Americans enjoy robust petitioning activity and do not need to be impartial toward a celebrity target to get retained," Richards wrote. "It's the opposite. They need to zealously represent their client, which in this case would be the trustee if the appointment is granted."

Russell previously approved a motion by Jason M. Rund, the trustee for Tom Girardi's personal bankruptcy, to appoint Abir Cohen Treyzon Solo LLP to investigate any transfers from Tom Girardi to Erika Girardi. Mastan did not object to that appointment. In re: Thomas Vincent Girardi, 20-BK21020 (C.D. Cal. Bankruptcy Ct, filed Dec. 18, 2020).

A hearing is scheduled for June 8 to determine whether Miller can employ Richards.