Erika Girardi questions reassigning husband’s law firm’s cases

The estranged wife of disgraced plaintiffs' lawyer Thomas V. Girardi questioned a motion that would assign some of her husband's cases to other law firms, saying it is unclear whether the proposal would maximize the value of the cases to pay off the millions of dollars Girardi's firm owes to creditors.

The motion, filed late Wednesday by Erika Girardi's lawyer, Greenberg Gross LLP partner Evan C. Borges, stated that she could also have a personal stake in making sure that the value of the cases is maximized. The Girardis did not sign a prenuptial agreement.

"Ms. Girardi shares the trustee's interest in maximizing the value of the GK [Girardi Keese] estate to pay in full all legitimate creditors (including victims of GK), given that if after payment of all legitimate debt claims, assets remain for equity, Ms. Girardi would have a community property right to a portion of those equity assets," Borges wrote.

Creditors forced the Girardi Keese firm and Tom Girardi into bankruptcy following allegations that he stole money from several personal injury clients, including relatives of those who died in a plane crash in Indonesia. Tom Girardi's law license has been suspended and federal prosecutors are believed to be investigating the alleged thefts.

Girardi Keese cases have been disbursed in bankruptcy court under different fee-sharing agreements to bring in money to pay millions of dollars to creditors.

In Tom Girardi's personal bankruptcy proceedings, his liabilities are approximately $57 million.In re: Thomas Vincent Girardi, 20-BK21020 (C.D. Bankruptcy Ct., filed Dec. 18, 2020).

U.S. Bankruptcy Judge Barry Russell recently allowed attorneys for Tom Girardi's bankruptcy estate and some of his former clients to seek money from Erika Girardi. She has made a name for herself by appearing in the reality TV show "The Real Housewives of Beverly Hills," where she often flaunted her lavish lifestyle.

But given Tom Girardi's "extremely valuable" portfolio of cases, there could be enough money to pay all legitimate creditors in full and even leave a surplus of money, the objection stated.

Two of those cases involved lawsuits against Johnson & Johnson and Boston Scientific Corp. over the companies' pelvic mesh products, which allegedly caused medical complications for women. Girardi Keese represented 52 clients.

Under the law firm's trustee and SulmeyerKupetz attorney Elissa D. Miller's motion, 30 cases for clients against Johnson & Johnson would be transferred to Nadrich & Cohen LLP and the Oshman Firm LLC. Another 22 cases in the Boston Scientific litigation would also be transferred. Johnson & Johnson has faced approximately 35,000 personal injury lawsuits over the product.

Miller did not disclose the proposed allocation of fees, "because of alleged harm that may result if the defendants learn this information," Borges wrote.

"[T]he motion does not provide critical factual information and related analysis necessary to determine whether, by the motion, the trustee is maximizing value for the GK estate or improvidently giving away value," Borges wrote. In re: Girardi Keese, 20-BK21022 (C.D. Bankruptcy Ct, filed Dec. 18, 2020).

Russell has already approved other fee-sharing arrangements expected to bring in significant money to the estate. Girardi was involved in cases stemming from the 2017 Las Vegas mass shooting, which settled for a reported $800 million, allegations that Johnson & Johnson's talc products cause cancer and people who said they were sickened from toxic emissions in the city of Paramount.

One of the biggest potential paydays is the Porter Ranch gas leak litigation, which plaintiffs' lawyers say is worth up to $2 billion. Girardi Keese represented more than 8,000 clients in the case.

To address the confidentiality concerns raised by Miller in the mesh litigation, Borges suggested that the parties sign a nondisclosure agreement to make sure that the proposal is in the best interest of the Girardi Keese estate.