Updated 3:35 p.m. PST

A state court judge in Los Angeles has entered a $6 million judgment against Tom Girardi and his law firm Girardi | Keese.

The judgment, entered Tuesday by Los Angeles Superior Judge Gregory Alarcon, comes after the prominent plaintiffs attorney failed to pay a portion of a $16 million settlement he and the firm entered into with litigation funder Law Finance Group.

LFG sued Girardi and the firm in January claiming they owed more than $15 million in unpaid loans. Girardi and the firm agreed to pay $16 million to settle the dispute this spring, with the full amount coming due June 7.

According to a stipulation filed with Tuesday’s judgment, the defendants delivered LFG a $10 million check June 7 and promised to pay the remainder of the settlement via wire by July 7. According to the judgment, Girardi and the firm are in breach of the settlement agreement and are jointly and severally liable for the full amount, which will accrue interest at a 10% annual rate.

Leslie Corwin of Eisner, who represents LFG, said that his client had no comment beyond what was already in court documents.

We stand behind everything we say in our papers,” said Corwin in a phone interview Wednesday morning.

In a statement provided by a firm spokeswoman, Girardi | Keese said that there’s nothing unusual about the funding arrangement Girardi and the firm had to cover the costs of cases handled on contingency.

“What is not common or normal is for these lending groups to file complaints and seek media attention – this is a new phenomenon we attribute to Mr. Girardi and his wife’s participation in a popular reality TV show,” the statement said, in part. “Due to the show, there is an increasing target on our backs, and we believe the recent lawsuits are rooted in a desire to take advantage of this high profile to intimidate and embarrass the firm.”

“Our reputation and our results speak for themselves. It is unfortunate that we deal with people like the Law Finance Group. Integrity is not their middle name or their first name,” the statement said.

Girardi, the firm and his wife, “Real Housewives of Beverley Hills” cast member Erika Jayne, were hit with a separate lawsuit in federal court in Arizona in May from lender Stillwell Madison. According to the Arizona complaint filed by lawyers at DLA Piper, the couple used a more than $5 million loan designated for the law firm to fund a “high-end lifestyle.” The Arizona suit claims Girardi fell behind on the Arizona loan as well and failed to inform Stillwell Madison that he was in default on the loan from Law Finance Group. According to a July 22 filing in the Arizona case, Girardi accepted service of the complaint in that case on behalf of all defendants July 17.


This report was updated with comment from a comment from Girardi | Keese.

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