The Tom Girardi lawsuits are still piling up
4/22/21 REUTERS LEGAL 22:53:11
Copyright (c) 2021 Thomson Reuters
David Thomas
REUTERS LEGAL
April 22, 2021
The Stow family attorney Thomas Girardi delivers his closing argument in a civil trial in a lawsuit brought by his client San Francisco Giants fan Bryan Stow against former Los Angeles Dodgers owner Frank McCourt in Los Angeles, June 26, 2014. Closing arguments finished today and the jury is currently deliberating the verdict for the lawsuit brought by Stow who suffered brain damage after he was brutally beaten at Dodger Stadium in 2011 by two Dodgers fans. He is seeking $35 million from the team and its former owner, McCourt, who denied responsibility for any gaps in security that lead to the beating. REUTERS/Irfan Khan/Pool (UNITED STATES - Tags: SPORT BASEBALL CRIME LAW)
(Reuters) - Formerly high-flying plaintiffs lawyer Tom Girardi has been hit with two more lawsuits, this time from former clients – a man who suffered burns on 90% of his body and an actress – alleging Girardi stole millions of dollars in settlement funds.
In a complaint filed in his Chapter 11 bankruptcy case on Tuesday, burn victim Joseph Ruigomez and his family allege that Girardi failed to pay out an $11 million settlement they won from Pacific Gas and Electric Co, even after they successfully sued Girardi for legal malpractice and obtained a judgment for that amount against him in April 2020.
In a separate complaint on Tuesday, actress Christina Fulton alleges that Girardi only paid her part of a $924,300 settlement she won in an injury case, claiming he was investing the rest for her. "Don't worry, your money is safe," he allegedly said.
These claims echo the alleged misconduct that prompted Girardi's downfall in recent months. Both Girardi and his firm were forced into involuntary bankruptcy in January after his attorneys acknowledged that Girardi failed to deliver $2 million in settlement funds that were meant to go to the families of victims of Lion Air Flight 610, and still couldn't pay.
And those are far from the only actions pending against Girardi, currently under the guardianship of his brother Robert who says Girardi is incapacitated by Alzheimer's disease. Attorneys for Robert Girardi did not respond to requests for comment on the new claims.
Below are some of the lawsuits that were already pending against Girardi and his now-defunct law firm, Girardi Keese, before they were forced into bankruptcy.
- Stillwell Madison LLC v. Girardi Keese et al: Litigation funder Stillwell Madison sued Girardi and his firm in May 2019, claiming they failed to repay a $5 million loan. The dispute was sent to arbitration, but in December Stillwell said it was seeking sanctions against Girardi Keese, which allegedly hasn't paid its share of the arbitration fees. The case is on pause due to the bankruptcy.
- Edelson PC v. Girardi Keese et al: In December, the Chicago-based plaintiffs firm Edelson accused Girardi and his reality star wife, Erika Jayne Girardi, of misappropriating Lion Air Flight 610 settlement funds in order to fund their "outrageous lifestyles ... in the glitz-and-glam world of Hollywood and Beverly Hills." The case is still pending in Chicago federal court.
- Wells Fargo Vendor Financial Services LLC v. Girardi Keese et al: After suing Girardi and his firm in December, Wells Fargo in March said that it had reacquired office equipment for which Girardi and his firm had allegedly failed to make monthly payments. The bank indicated it's still seeking $882,000, plus interest, Girardi allegedly owes for the equipment.
- The Robert Keese cases: Girardi's former legal partner, Robert Keese, sued him twice in Los Angeles County Superior Court in December, alleging that he failed to make regular payments under a name-use agreement, and saddling their joint business venture with more than $7 million in debt without his knowledge. The cases are still pending.
Meanwhile, the California state bar has leveled attorney disciplinary charges against Girardi, alleging last month that he misappropriated money owed to clients in at least three cases, including the Lion Air Flight crash case. A hearing in the disciplinary case is set for May 10.
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