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News

Bankruptcy

Oct. 12, 2021

Law firm wants to pursue assets of Tom Girardi’s wife

The law firm Edelson PC asked Bankruptcy Judge Barry Russell for clarification because it wants to pursue Erika Girardi’s assets under the theory that her husband transferred to her funds he is accused of embezzling from personal injury clients.

A U.S. bankruptcy judge said he will hold a hearing to determine whether assets of the estranged wife of plaintiffs' attorney Thomas V. Girardi could be pursued to pay attorney fees.

The law firm Edelson PC asked Judge Barry Russell for clarification because it wants to pursue Erika Girardi's assets under the theory that her husband transferred to her funds he is accused of embezzling from personal injury clients.

"If there are other assets located in Erika's possession that should properly be apportioned by this court that we discover while pursuing the Edelson action, Edelson will work with the trustee to make sure that occurs, at which point those assets will become subject to the jurisdiction of this court," the motion stated.

Edelson PC sued Girardi and his law firm late last year in federal court in Illinois seeking funds owed to the families of victims of a plane crash in Indonesia who Edelson and Girardi Keese jointly represented. That case was stayed after creditors forced Girardi and his law firm into bankruptcy. In re: Thomas Vincent Girardi, 20-BK12020 (C.D. Cal Bankruptcy Ct, filed Dec. 18, 2020).

Erika Girardi, known professionally as Erika Jayne, is an entertainer and a cast member of the reality TV show, "The Real Housewives of Beverly Hills." She announced her separation from her husband late last year, just as the allegations against him were coming to light.

Edelson is not the first to consider going after Erika Girardi's assets to pay her husband's clients and creditors. Bankruptcy trustee Elissa D. Miller of SulmeyerKupetz, hired Ronald N. Richards as special litigation counsel to find assets transferred to Erika Girardi from the law firm.

The trustee has identified roughly $101 million in debts owed by the Girardi firm. Settlements from several Girardi firm cases, including the $1.8 billion deal reached last month with Southern California Gas Co. over the gas leak in Porter Ranch, are expected to yield enough money to repay many of the clients and creditors.

Representatives for Tom Girardi have said he is suffering from Alzheimer's disease. He has been placed in an assisted living home and his law license was suspended.

Russell set a Nov. 2 date to hear Edelson's motion.

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Henrik Nilsson

Daily Journal Staff Writer
henrik_nilsson@dailyjournal.com

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