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News

Bankruptcy,
Ethics/Professional Responsibility

Jun. 16, 2021

Attorney for Girardi's wife asks to withdraw from her cases

“There has been a fundamental and material breakdown in the relationship between the firm and Ms. Girardi,” Peter J. Mastan, said in two near-identical motions filed before U.S. Bankruptcy Judge Barry Russell.

An attorney for the wife of disgraced plaintiffs' lawyer Thomas V. Girardi told a U.S. Bankruptcy Court on Tuesday that he wants to withdraw from two cases because "the relationship of trust and confidence that is essential to a properly functioning attorney-client relationship has broken down."

"There has been a fundamental and material breakdown in the relationship between the firm and Ms. Girardi," Peter J. Mastan said in two near-identical motions filed before U.S. Bankruptcy Judge Barry Russell. "In my good faith judgment, the attorney-client relationship has been irreparably damaged and it is no longer possible to carry on an attorney-client relationship with the necessary degree of trust and confidence which is foundational to that relationship."

Erika Girardi, better known as the celebrity entertainer Erika Jayne on the reality television show "The Real Housewives of Beverly Hills," could not be reached for comment. Mastan said in his motions that he did not know if she had hired a new lawyer.

Tom Girardi is accused of stealing millions of dollars in settlement money from clients, including victims of an airline crash in Indonesia. Creditors have forced Girardi and his firm, Girardi Keese, into bankruptcy. Two trustees have hired lawyers to recover assets from Erika Girardi. In re: Thomas Vincent Girardi, 20-BK21020 (C.D. Cal Bankruptcy Ct, filed Dec. 18, 2020); In re: Girardi Keese, 20-BK12022 (C.D. Cal Bankruptcy Ct, filed Dec. 18, 2020).

Mastan, managing partner at Dinsmore & Shohl LLP, did not respond to requests for comment on Tuesday. In his motions, he cited Rule 1.16 of the California Rules of Professional Conduct, which states that attorneys can withdraw from representing a client in several circumstances, including: "The client by other conduct renders it unreasonably difficult for the lawyer to carry out the representation effectively" or "the lawyer believes in good faith, in a proceeding pending before a tribunal, that the tribunal will find the existence of other good cause for withdrawal."

Mastan added he could not provide specific details without breaching client confidentiality, but offered to answer the judge's questions in private.

Ronald Richards, the lawyer hired by one of the trustees to look into Erika Girardi's finances, said he could not comment specifically on Mastan's departure. Last week, Mastan objected to the trustee's application to hire Richards to recover any assets that may have been transferred to Erika Girardi from the law firm.

But Richards said in general attorneys do not ask to drop their clients unless "there's a breakdown." If a client wants to fire their attorney, or the client and the attorney mutually decide to part ways, "you just sub out the lawyer. ... The judge may sign off on it, but it's pro forma. They're going to sign it every time," Richards said.

Attorneys typically withdraw from cases for three reasons, Richards said: The client doesn't want to pay their legal fees; the client refuses to follow the attorney's advice; and business conflicts.

Erika Girardi filed for divorce from her estranged husband in November.

The trustee for Tom Girardi's personal estate has retained his own special litigation counsel, Abir Cohen Treyzon & Salo LLP, to recover assets from Erika Girardi. The firm did not respond to a request for comment.

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Jessica Mach

Daily Journal Staff Writer
jessica_mach@dailyjournal.com

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