Girardi’s bankruptcy estate, ex-clients, can seek money from his wife

A Los Angeles bankruptcy judge signed an order Tuesday allowing attorneys representing plaintiffs' attorney Thomas W. Girardi's bankruptcy estate and some of his former clients to seek money from his celebrity wife.

An agreement was reached between the trustee handling Girardi's personal bankruptcy and the one dealing with the bankruptcy of his law firm, Girardi Keese.

"The goal is that the assets will be brought into the estates," Craig G. Margulies, an Encino-based partner with Margulies Faith LLP, told U.S. Bankruptcy Judge Barry Russell. In re: Thomas Vincent Girardi, 20-BK21020 (C.D. Bankruptcy Ct, filed Dec. 18, 2020).

The determination of which estates would receive any assets collected would be determined by Russell, the attorneys told him.

Philip E. Strok, an attorney with Smiley Wang-Ekvall LLP who previously objected on behalf of the Girardi Keese Chapter 7 estate, told Russell his concerns were satisfied.

"We think our estate is protected," Strok said. In re: Girardi Keese, 20-BK21022 (C.D. Bankruptcy Ct, filed Dec. 18, 2020).

Margulies represents the family of Joseph Ruigomez who was badly burned in the 2010 San Bruno gas explosion and is owed more than $11.7 million. The family sought relief from a stay so they can pursue collection actions against Erika Girardi.

The family sued Thomas Girardi in Los Angeles County Superior Court before his creditors forced him into bankruptcy. Ruigomez et al. v. Girardi et al., 19STCV22296 (L.A. Sup. Ct, filed Dec. 15, 2020).

Erika Jayne at the 30th Annual GLAAD Media Awards at the Beverly Hilton Hotel on March 28, 2019 in Los Angeles, CA

The Ruigomez family is one of many of Girardi's clients who have accused him of stealing settlement money from them.

An attorney for Erika Girardi, who is best known as one of the stars of the TV reality series, "The Real Housewives of Beverly Hills," objected to the motion on the grounds it creates multiple state and bankruptcy court proceedings for no reason.

In a court filing, Greenberg Gross LLP partner Evan C. Borges said his client, Erika Girardi, would cooperate with formal requests in bankruptcy proceedings but said she was not involved in the Ruigomez family's claim for proceeds of the sale of the Girardis' Pasadena home.

The home remains for sale, attorneys told Russell at the hearing, and Tom Girardi still lives there.

"As background, to be clear, the moving parties obtained a judgment in state court against only Mr. Girardi and Girardi Keese," Borges wrote in an objection filed Monday. "No judgment was obtained or exists against Ms. Girardi."

Russell, however, refused to allow Borges to speak at Tuesday's hearing because his objection was filed too late.

"You realize what you filed is totally improper," the judge told Borges.

Borges, who was hired recently to represent Erika Girardi, known professionally as Erika Jayne, appeared resigned. "I tried," he said.

Lei Lei Wang Ekvall, a co-founder of Smiley Wang-Ekvall who was the lead attorney for the trustee handling the Girardi Keese bankruptcy, died June 28 after suffering a stroke. She was 55.

Wang Ekvall was a prominent bankruptcy attorney and past president of the Orange County Bar Association.

Robert S. Marticello, a partner at Smiley Wang-Ekvall said in an interview that Wang Ekvall's death prompted an outpouring of sympathy.

"She was a leader of the bankruptcy community at large," he said.

"One of the best ways to honor her legacy is to continue the firm that she founded," Marticello said, adding that includes the Girardi Keese matter.

An event honoring Wang Ekvall's memory is pending, he added.

Elissa D. Miller, the SulmeyerKupetz attorney who is the trustee of the law firm bankruptcy, told Russell it's been "a tumultuous, sad couple of weeks" but that Smiley Wang-Ekvall would continue handling the case.