Arizona Court Tosses Girardi's Early Bid to Dismiss Litigation Funder's Suit
U.S. District Judge Steven Logan found that Girardi's out-of-state lawyers hadn't obtained pro hac vice status in the case before filing the motion to dismiss and his local counsel hadn't filed the appropriate notice to appear in the case.
January 13, 2020 at 07:39 PM
3 minute read
Thomas Girardi. Photo: Christine Jegan
A federal judge in Phoenix has denied an early attempt by Thomas Girardi to knock out a lawsuit brought by litigation funder Stillwell Madison, which sued Girardi, his firm and his wife last year claiming the prominent plaintiffs misled the funder to grant a forbearance of $3,454,804 on a loan of more than $5 million to Girardi's law firm last year.
Stillwell Madison filed suit with counsel from DLA Piper last year claiming that Girardi failed to disclose that he and the firm had defaulted on a loan from a separate lender at the time of the forbearance. Girardi's lawyers asked to dismiss the case calling it a "publicity stunt" aimed at capitalizing on media attention surrounding his wife Erika Jayne's role on the reality television show "The Real Housewives of Beverly Hills." They also claimed the dispute was subject to arbitration.
U.S. District Judge Steven Logan of the District of Arizona on Monday denied without prejudice a motion to dismiss filed by Girardi's lawyers on technical grounds. Logan found that Girardi's initial lawyers on the motion to dismiss—Phillip A. Baker and Robert C. Baker at the Los Angeles law firm Baker, Keener & Nahra—hadn't applied for pro hac vice status at the time they filed the motion. Logan also found that Phoenix lawyer Patrick McGroder III of Beus Gilbert McGroder, who had also made filings on Girardi's behalf, wasn't authorized to appear in the case.
After Stillwell Madison's lawyers at DLA Piper last year raised the pro hac vice deficiency in reply to Girardi's motion to dismiss, McGroder responded in court papers on Girardi's behalf noting that Robert Baker had been admitted pro hac vice with the Arizona court in prior cases and "in good faith believed he was still admitted by reviewing the court website as to attorneys admitted before this court." McGroder offered to refile Girardi's motion while Baker's pro hac vice status was pending, if the court desired.
In Monday's ruling, Logan noted that McGroder hadn't signed the initial motion to dismiss filed by the California lawyers and "has not otherwise appeared on behalf of defendants in this case." Logan also noted that Robert Baker has not been admitted to appear in the case despite assurances in McGroder's court filing that he would reapply.
"The court finds that neither Robert C. Baker, nor Mr. McGroder have authorization to appear in this case," Logan wrote. "Consequently, the court will not consider the motion on its merits at this time."
Neither Girardi nor any of the lawyers who have appeared in the case on his behalf responded immediately to messages Monday afternoon.
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