According to court documents, Tom Girardi reached a deal with Law Finance Group — agreeing to pay the company $16 Million in total.
Despite calling the suit “fraudulent, slanderous and an abuse of the legal process,” Girardi agreed to pay the total amount of the loan PLUS damages for a total of $16 Million.
“Law Finance insisted that any and all disputes or issues concerning the loan go to mandatory arbitration,” he wrote. “Despite this agreement, the law firm filed a baseless case against the law firm and me personally full well knowing they had adequate protection in the form of my personal assets.”
Earlier this year, Law Finance Group sued Tom Girardi and his law firm, Girardi Keese, for $15,151,989 over an unpaid loan. The deal was for him to make monthly payments, along with a $1 million payment by the end of October. The Law Finance Group accused Girardi of not repaying the loan in accordance to a repayment plan agreed upon in August 2018.
Girardi, 80, demanded the suit be thrown out and denied wrongdoing but the judge disagreed and allowed the case to be move to arbitration.
The parties in the suit went to arbitration and Girardi agreed to pay back the ENTIRE debt by July 7, 2019. He made a payment of $10 million on June 7, but failed to pay the remaining $6 million by the July 7 deadline.
Law Finance Group rushed to court demanding a judgment in the amount of $6 million. The court set a date to hear the matter at a later date.
As reported, Law Finance Group claims the 79-year-old Real Housewives of Beverly Hills star used his funds intended for the operations of his law firm but used the money to maintain Mr. Girardi’s lavish lifestyle.
The Real Housewives of Beverly Hills husband originally agreed to use the Pasadena home he lives in with Erika Jayne as collateral in case he defaulted, the same home featured on “Real Housewives of Beverly Hills.”