Trustee won’t stand in way of pursuit of Girardi wife’s assets

In the wake of her removal of Girardi Keese bankruptcy special litigation counsel Ronald N. Richards, the trustee handling the case reversed course and will not object to a law firm pursuing assets from plaintiffs' attorney Thomas V. Girardi's celebrity wife, Erika Girardi.

Elissa D. Miller, a partner with SulmeyerKupetz who is handling the Girardi Keese law firm bankruptcy, withdrew her opposition to Edelson PC pursuing allegations that Erika Girardi has received proceeds from the settlement of a lawsuit over a plane crash in Indonesia.

"This stipulation confirms what Edelson has said in its filings to date: Edelson will not attempt to collect property of either the [Thomas V. Girardi] Estate or the [Girardi Keese] Estate," the agreement states. "The Girardi Keese Trustee accordingly has no objection to Edelson proceeding against Erika as a defendant in Edelson v. Girardi."

The stipulation was signed Thursday by Rafey S. Balabanian of the Edelson firm and Philip E. Strok, a partner with Smiley Wang-Ekvall LLP who represents Miller. In re: Thomas V. Girardi, 20-BK-21020 (C.D. Bankruptcy Ct., filed Dec. 18, 2020).

Balabanian argued it was clear that "payments had been made for Erika or her companies from Lion Air settlement money" and that there was every reason for Edelson to be permitted to pursue its claims against her.

Miller's abrupt about-face followed an Edelson filing Tuesday that accused Richards of coordinating the trustee's efforts with Evan C. Borges, a Greenberg Gross LLP partner who represents Erika Girardi.

"Mr. Richards and Erika are apparently willing to say or do anything they need to in order to keep Edelson's investigation away from Erika Girardi and clear the way for Mr. Richards and Erika to negotiate a backroom settlement," Balabanian wrote.

Edelson, which worked with Girardi Keese in the Lion Air litigation, has an ongoing lawsuit against Tom Girardi, Erika Girardi, her company EJ Global LLC and other defendants.

Most of those claims have been on hold since creditors forced Tom Girardi and Girardi Keese into bankruptcy, with litigation being pursued only against former firm attorneys David R. Lira and Keith D. Griffin.

If U.S. Bankruptcy Judge Barry Russell of Los Angeles approves Edelson's motion, Erika Girardi may join them as a defendant in the Chicago federal lawsuit. Edelson PC v. Girardi et al., 20-CV-07115 (N.D. Ill., filed Dec. 2, 2020).

Borges denied Friday that the Edelson filing shows that any Lion Air funds went to Erika Girardi. He wrote that Girardi Keese, not Erika Girardi, managed the finances of EJ Global, writing that there is "no evidence Erika received any Lion Air funds, and no evidence any such funds were even sent to EJ Global LLC."

Miller declined to comment Friday about the replacement of Richards with Larry W. Gabriel, a Jenkins Mulligan & Gabriel LLP partner, or the reasoning behind her decision to withdraw her objection to the Edelson motion.

Richards has characterized his departure from the case as a mutual decision. Edelson said again Friday that Richards was fired by the trustee. Before Miller replaced him as special litigation counsel, Richards argued it was not economical for the Girardi Keese estate to force Erika Girardi to defend multiple lawsuits.

"To force the GK Trustee's Special Litigation Counsel's target to have to go through more stress and aggravation for accounting defies logic at this point in time," he wrote last month.

"The litigation relating to accounting and GK Estate transfers and direct liability to Erika Jayne belong in front of one court, this court, not piecemealed across America," he added.