Tom Girardi and his wife Erika Jayne during the episode “Horsing Around Tom Girardi and his wife, Erika Jayne, during the episode “Horsing Around” of the Bravo television show “The Real Housewives of Beverly Hills,” which aired on Tuesday, Dec. 15, 2015. (Photo: Bravo)

Already fighting a lawsuit from one litigation funder in Los Angeles state court, Thomas Girardi and his law firm have been hit with another lawsuit in federal court in Arizona claiming that the prominent plaintiffs attorney has failed to keep up with payments on a loan of more than $5 million taken out to fund the firm's caseload.

The Arizona lawsuit also names Girardi's wife, “Real Housewives of Beverley Hills” cast member Erika Jayne, and claims that the couple used funds designated for Girardi & Keese “in order to sustain their lavish lifestyle and maintain their glamorous public image.”

Filed by lawyers at DLA Piper on behalf of lender Stillwell Madison, the complaint claims that “the Firm and Mr. Girardi intended at the time the loan agreement was entered to use at least a portion of the loan funds to support Mr. Girardi and his wife's high-end lifestyle, but concealed this fact from Stillwell.”

The suit filed on May 24 in U.S. District Court for the District of Arizona claims that the firm borrowed $5,110,440.38 in April 2016 and that the firm and Girardi—the firm's “100% owner”—still owe Stillwell at least $3,454,804.00.

Girardi didn't immediately respond to email and phone messages Monday night and Tuesday morning. His assistant said Tuesday that he was out of the office at a settlement conference.

The Arizona lawsuit comes as Girardi is engaged with a separate dispute with Mill Valley-based funder Law Finance Group over the repayment of a loan of more than $15 million. Law Finance Group claims that Girardi and the firm refused to hand over recovered fees from cases the parties allegedly agreed would repay the loans. Girardi previously told The Recorder that the Law Finance Group loan was taken out on behalf of clients, not for him and the firm.

Law Finance Group's lawyer, Leslie Corwin of Eisner, said that his client was aware of the Arizona lawsuit but declined to comment further. A hearing in the California case is scheduled for June 26.

In addition to breach of contract claims, Stillwell Madison is suing both Girardi and the firm for fraud, claiming they negotiated a forbearance agreement with the lender without informing them of the default on the loan from Law Finance Group. Law Finance Group was included on a list of ”liens or other encumbrances on payments due to transferor from cases” attached to the loan agreement with Stillwell Madison. The Arizona lender claims that, had it known about the default, it never would have agreed to Girardi's August 2018 proposal to allow him to make monthly $500,000 payments on the loan beginning in October 2018 to pay the loan off in full by September 2019.

The Arizona lender further alleges that Girardi didn't make the proposed October payment under the initial forbearance agreement and approached the lender again on Dec. 2, 2018, with a new offer to make three payments of $500,000.00 per month between December 2018 and February 2019 to pay off the full loan balance by March 17, 2019. According to the complaint, Girardi made the full December payment but only paid $250,000 in January 2019 and has made no further payment since.

DLA Piper's Kate Benveniste, who represents Stillwell Madison along with Laura Sixkiller in the firm's Phoenix office, didn't immediately respond to messages Tuesday.

Read the complaint:

 

Read more:

Tom Girardi, Husband to 'Real Housewives' Star, Appears in Court Over His Assets

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Girardi Bucks Back Against Alleged $15M Debt to 'Miserable, Rotten' Litigation Funder

Litigation Funder Sues Thomas Girardi, Firm Claiming $15M+ in Unpaid Loans