Bankruptcy trustee opposes Chicago firm pursuing Erika Girardi’s assets

The trustee in the bankruptcy of Girardi Keese is opposing a Chicago law firm’s effort to pursue assets of the estranged wife of plaintiffs’ attorney Thomas V. Girardi.

The trustee, Elissa D. Miller of SulmeyerKupetz, filed the motion on Tuesday. It comes after Edelson PC, whose lawsuit against Girardi in Illinois is stayed, pending bankruptcy proceedings in Los Angeles, asked for a clarification that they could go after Erika Girardi’s assets to pay clients and attorney fees.

An attorney for Miller, Philip E. Strok of Smiley Wang-Ekvall LLP, wrote that Edelson’s motion would disrupt Miller’s work since claims against Erika Girardi potentially involve property of the Girardi Keese estate.

“Edelson cannot guarantee that any recovery against Erika will not involve property of the GK estate, and the GK trustee is not in a position to determine if Edelson unintentionally recovers GK estate property, as her forensic accounting analysis is in its beginning stages,” Strok wrote.

Girardi Keese and Edelson partnered to represent victims of a Boeing airplane crash in Indonesia. After Edelson accused Tom Girardi of stealing the clients’ settlement money, creditors forced Girardi and his law firm into bankruptcy.

Edelson’s motion was filed in Thomas Girardi’s personal bankruptcy case. In re: Thomas Vincent Girardi, 20-BK12020 (C.D. Cal Bankruptcy Ct, filed Dec. 18, 2020).

In his motion this week, Strok also took issue with Edelson’s request for relief from the stayed Illinois case, saying it could allow a non-bankruptcy court to make determinations that could impact the Girardi Keese bankruptcy.

“Many of the GK estate’s creditors are former clients/victims of GK,” Strok wrote. “These victims live all over the United States and some outside of the United States. If the court permits Edelson to pursue claims in the Edelson action, the former clients/victims of GK will be forced to incur additional costs to monitor another forum to ensure their rights aren’t affected. It is not fair to require these creditors to shoulder the additional burden of monitoring litigation in an outside forum so that they can protect their rights.”

Miller has identified roughly $101 million in debts owed by the Girardi firm. Settlements from several Girardi Keese 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.

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.” Miller and the trustee for Girardi’s personal bankruptcy, Jason M. Rund of Sheridan & Rund, have already started trying to find her assets.