'Real Housewives' lawyer had close ties to some state bar officials, never faced ethics charges despite accusations
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Los Angeles trial lawyer Tom Girardi, the husband of The Real Housewives of Beverly Hills star Erika Jayne, was frequently accused of wrongdoing in lawsuits, yet he never faced disciplinary charges by the State Bar of California.
According to an investigation by the Los Angeles Times, Girardi and his law firm, Girardi Keese, faced at least 45 lawsuits accusing them of legal malpractice or misappropriation of client money. Another estimated 14 suits claimed that lawyers or experts never received fees they had earned. Girardi won some of the cases and settled some of them before trial.
One recent lawsuit, filed Dec. 2, accused Girardi and his law firm of embezzling settlement proceeds intended for widows and orphans who lost loved ones in the October 2018 crash of a Boeing 737 Max. The judge in the case referred Girardi to federal prosecutors.
“What is undisputed,” the Los Angeles Times reported, “is that Girardi had a lot of dissatisfied clients.”
But Girardi escaped ethics charges at a time when he “cultivated close relationships with bar officials that at times appeared improper,” the Los Angeles Times said.
The newspaper’s investigation alleged:
• Girardi invited bar staff members each year to his annual conference in Las Vegas, “where Girardi hosted over-the-top parties at the Wynn casino featuring Jay Leno and other celebrity entertainers.”
• After a lawyer at Girardi’s law firm became bar president in 2009, the bar hired a new executive director, Joe Dunn, who was a friend of Girardi’s. Dunn was accused of violating policy by using a state credit card to pay for airfare to Mongolia while advising on a lawyer regulatory system. Before Dunn submitted an expense report, Girardi’s law firm sent a $5,000 check to the bar.
• While under investigation for misconduct in 2010, Girardi paid for “a lavish retirement bash” for the retiring chief justice of the California Supreme Court, which oversees the bar, and for the departing state bar president. Singer Paul Anka performed at the party, hosted at the state bar’s convention.
• Girardi “forged a particularly tight relationship” with bar investigator Tom Layton. Girardi treated Layton to “pricey meals,” gave two of his children jobs at Girardi’s law firm, allowed Layton to ride on his private jet, and did free legal work for him. Layton, who left the bar in 2015, has said he never worked on any investigation involving Girardi Keese.
“The bar’s inaction came at a profound cost,” the Los Angeles Times reported. “Orphans, widows, a burn victim and other vulnerable clients who trusted Girardi to win them justice have instead lost millions of dollars apparently spent or otherwise misappropriated, according to judges’ orders in the recent cases.”
The California bar’s chief trial counsel, Jayne Kim, who was hired to professionalize the state bar’s disciplinary system, expressed concerns about Layton and Dunn. Munger, Tolles & Olson was hired to investigate. Its report raised concerns about ties between some senior officials and Girardi Keese.
Dunn was fired in November 2014, and Layton’s position was eliminated.
A state bar spokeswoman told the Los Angeles Times that confidentiality rules prevented the bar from answering questions about investigations.
“Beyond those constraints is the reality that much of what you are asking about concerns a time period many years past,” the spokeswoman said. “The current board of trustees and staff leadership team have no knowledge of the information you are seeking.”
See also:
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Judge freezes assets of winning 'Erin Brockovich' law firm after suit alleges stolen settlement funds
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A federal judge has frozen the assets of the law firm Girardi Keese and founder Tom Girardi after a suit accused Girardi of embezzling settlement money to support his celebrity lifestyle.
U.S. District Judge Thomas Durkin of the Northern District of Illinois said Monday a trustee will be appointed to manage the assets of Girardi and his Los Angeles law firm, report Law360, the Chicago Sun-Times and Law.com.
Durkin also said he was referring the case to prosecutors, according to Law360.
Durkin found Girardi and Girardi Keese in contempt Monday after they were unable to account for at least $2 million in settlement money benefiting four of Girardi’s clients. Durkin issued a $2 million judgment against Girardi and Girardi Keese, the articles report.
The clients had lost loved ones in the October 2018 crash of a Boeing 737 Max.
Girardi Keese was portrayed in the film Erin Brockovich as the law firm that helped the main character, Erin Brockovich, and her firm win a $333 million settlement in a case concerning contaminated drinking water.
Girardi is married to Erika Jayne of The Real Housewives of Beverly Hills. A Dec. 2 lawsuit filed by the Edelson law firm claimed that Girardi had embezzled plane crash settlement money to bolster their image of “obscene wealth.” Jayne filed for divorce this month.
According to Law360, Durkin said in the telephone hearing that violating ethics rules carries consequences.
“This isn’t that difficult: You learned in law school, we all did, in Ethics 101, that when you get money that belongs to a client you put it in an escrow fund and you don’t touch it,” Durkin said. “No matter what your personal financial situation is, no matter what kind of pressures you’re under, if you touch client money you’re going to be disbarred and quite possibly charged criminally.”
Girardi’s lawyer, Evan Jenness, said during the hearing her client appeared to be mentally incompetent, and he couldn’t help her trace the funds, according to Law360. The law firm currently has $15,000 in its operating bank account, she said.
Girardi Keese has shrunk from about 20 to five lawyers, according to Law360. Durkin said he would not extend his contempt order, at this time, to two lawyers who recently left the firm, David Lira and Keith Griffin. Lawyers for Lira and Griffin said their clients had no role handling the settlement funds.
Thomas Girardi. Photo: Christine Jegan
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