“Real Housewives of Beverly Hills” star Erika Jayne wants $3 million-dollar lawsuit over her husband’s unpaid loan out of public eye.
According to court documents obtained by The Blast, Erika and her husband Thomas Girardi have requested that the lawsuit filed against them be moved from federal court to arbitration (where it would be sealed from the public).
The reality stars were sued by a lender who claims Girardi defaulted on a loan. The lawsuit accused him of using some of the money to fund his and Erika’s lavish lifestyle.
The Girardis call the lawsuit nothing more than a “publicity stunt” and claim the lender knows this dispute belongs in arbitration.
They also accuse the lender of having, “filed in federal court using such highly charged language as “lavish lifestyle” and “glamorous public image” with the goal to try to use the Court system as a publicity campaign."
A judge has yet to rule.
Earlier this year, Erika and Thomas along with his law firm were sued by a lender named Stillwell Madison.
Stillwell claims to have loaned Girardi’s law firm $5,110,440.38 back in 2016. They were to be paid back from money made from the firm.
Girardi promised to hand over financial statements regularly and make timely payments.The lender says they would later learn, “Mr. Girardi re-directed all or part of the proceeds, to which Stillwell was contractually entitled, to himself and his wife in order to sustain their lavish lifestyle and maintain their glamorous public image.
The firm said Girardi failed to make all the required payments per their deal. Girardi then promised to start making monthly payments of $500k starting October 2018 and ending in September 2019. However, they claim, “Mr. Girardi has never followed through on any of his proposals—reinforcing the indication that he (nor the Firm) has, and continues to not have, any intention of repaying the loan balance.”
Stillwell says they, “would not have provided the Loan had it known that Defendants were going to use the Loan proceeds to, upon information and belief, support Mr. and Mrs. Girardi’s high-end lifestyle.”
The suit is seeking the $3,454,804 remaining on the loan plus punitive damages.
Girardi was also recently hit with a $6 million-dollar judgment in a separate legal battle involving an unpaid loan.
Girardi and his law firm, Girardi Keese were sued by a Law Finance Group. The company claims they loaned Girardi a total of $15 million to fund the operations of his firm.
They also alleged in the suit that they believed the money was used “to maintain Mr. Girardi’s lavish lifestyle.”
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.
The suit also claimed Girardi 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.”
Law Finance Group said Girardi has only made “hollow promises” to repay and hasn’t paid a dime. They sued for the full $15,151,989 owed and other damages.
Girardi strongly disputed the allegations in the lawsuit and told The Blast, “The truth of the matter is this. I have not taken one penny from the law firm in the past three years. I have devoted everything to assist in the cases that we have here. Further, the money that was borrowed, we agreed to repay in approximately two weeks before the lawsuit. It is slanderous that the money was for my ‘lifestyle’ … every penny went for costs in cases that the firm is handling.”
A judge recently ordered Girardi to pay the remaining $6 million to Law Finance, which will grow with interest into paid in full. He was also ordered to appear in court with his financial records in November.
Girardi isn’t the only “RHOBH” dealing with legal troubles, Dorit Kemsley and her husband PK also have been ordered to appear in court with their bank records later this year. Their bank account has also been frozen in the case.