Erika Jayne is seeking to have her $3 million-dollar lawsuit over her husband’s unpaid loan hidden from the public.
The Real Housewives of Beverly Hills star and her husband, Thomas Girardi, have requested that a lawsuit by Stillwell Madison, LLC, be moved from federal court to arbitration — which would bar access to the public.
On July 22, 2019, Stillwell Madison, LLC filed a federal lawsuit against the reality star, her husband Thomas Girardi, and his law firm, Girardi & Keese, according to court documents obtained by AllAboutTheTEA.com.
According to Stillwell Madison, LLC — the couple used funds designated for Girardi & Keese to “sustain their lavish lifestyle and maintain their glamorous public image.”
Stillwell Madison claims they loaned Girardi’s law firm $5,110,440.38 in 2016 — then Girardi and his law firm failed to keep up with payments on a loan taken out to fund the firm’s caseload. Girardi still owes Stillwell at least $3,454,804.00 on the loan.
Thomas Girardi was also recently ordered to appear in court on November 4, with his financial records and bank statements, in another lawsuit. Another creditor is trying to collect on $6 million owed on an unpaid loan. Girardi owes a lender Law Finance Group a total of $6 million dollars after breaching a settlement deal with the company.
The court found Girardi in breach of a settlement deal with Law Finance Group. He had agreed to pay back a total of $16 million but only paid $10 million by the deadline, leaving an unpaid balance of $6 million.
The lender claimed Girardi breached a repayment plan they agreed to in August 2018. The deal was for him to make monthly payments, along with a $1 million payment by the end of October, and $5 million by January 1.
Law Finance Group also alleges that Girardi used the money “to maintain Mr. Girardi’s lavish lifestyle.” The suit accuses the lawyer of “re-directed all or part of the proceeds” to “himself and his wife in order to sustain their lavish lifestyle and maintain their glamorous public image.”