The 2000 film “Erin Brockovich” made an environmental contamination case famous. Years later, attorney Ed Masry’s law firm faced bankruptcy after his death. The firm’s files went to Tom Girardi and his law firm, Girardi Keese. In July 2020, Masry’s estate claimed Girardi hadn’t turned over settlement funds from nine cases. Law.com reported this development.
Douglas Harris represented Masry’s estate. He’s an associate at Alston & Bird in Los Angeles. Harris stated, “Each unaccounted case appears settled, but no disbursements were made to the Masry Estate.”
He added, “The Masry Estate hasn’t received money under the confirmed plan since November 2018.” Harris noted pending cases and possibly undistributed settlement funds. These should have been distributed according to the plan.
The estate asked Judge Maureen Tighe to order Girardi’s firm to produce payment documents. Judge Tighe granted this request. She ordered Girardi Keese to provide the necessary documentation. It’s unclear if Girardi’s firm complied. Leonard Pena, representing Tom’s brother Robert, asked a judge to appoint him as guardian ad litem.
Girardi and his firm had to provide a creditor list to Judge Barry Russell. Russell ordered both into Chapter 7 bankruptcy proceedings. Creditors filed involuntary bankruptcy petitions against Girardi. This followed a $2 million contempt judgment for unpaid settlements. The case involved Boeing’s 2018 Lion Air crash in Indonesia.
Girardi faces numerous pending lawsuits. Trustees are examining his cases for potential bankruptcy assets. These cases could generate $10 million in fees. Some clients are now seeking new lawyers.
Litigation funders have filed claims too. California Attorney Lending II got a $6.2 million judgment against Girardi. They’re also a secured creditor in Masry’s firm’s 2009 bankruptcy.
Richard Labowe represents California Attorney Lending. He told The National Law Journal about their past claims. Their client once had a “claim exceeding $10 million” in Masry’s bankruptcy. Labowe said, “Unsecured creditors got some early payments. Then things dried up.”
This all stems from the famous “Erin Brockovich” case. Girardi and Masry represented Hinkley, California residents. They sued Pacific Gas & Electric Co. over contaminated water. The case settled for $333 million in 1996.
Harris stressed the ongoing financial issues. He said, “A significant time has passed since the Masry Estate received any disbursements.” This is despite settled cases. Harris wants documents to check for unpaid amounts. He also wants to verify if Girardi Keese is following the plan. The quest for clarity continues.