The judge overseeing Rudy Giuliani’s bankruptcy case said he was “disturbed” so little progress has been made in sorting out his finances, and refused Tuesday to lift a legal barrier that has kept the former New York City mayor from appealing a $148 million defamation judgment.
Giuliani declared bankruptc y in December after he was ordered to pay the staggering sum to two former election workers for spreading a false conspiracy theory about their role in the 2020 election.
Since then, Giuliani has missed deadlines to file financial disclosure reports. He hasn’t succeeded in selling residences in New York and Florida. Last week, he was suspended from WABC Radio, where he had a daily show, over what the station called his repeated violation of a ban on discussing discredited 2020 election claims.
“They have done nothing. They sold nothing. They settled nothing,” said Rachel Strickland, an attorney representing the election workers. She accused Giuliani of getting fired on purpose by “deliberately flouting his employer’s restrictions.”
“I agree with you,” U.S. Bankruptcy Judge Sean Lane responded. “And I am disturbed about the status of this case.”
Attorneys for Giuliani said he has additional work lined up to bring in money, though they didn’t say what kind of work that was. Giuliani’s Manhattan apartment could soon be liquidated, they said. His attorneys said issues have been ironed out and necessary financial filings will also be made. Giuliani faces accusations from a slew of people who say he potentially owes them money.
“They finally have, I think, gotten things on track,” said his lawyer, Heath Berger.
The judge rejected a request from Giuliani, though, to lift an automatic stay so that he could pursue post-judgment litigation in the defamation case. Creditors’ lawyers argued that doing so would delay the bankruptcy proceeding.
Lane also addressed a request from lawyers for the election workers that Giuliani be barred from making additional defamatory statements against them. While holding off on a decision, Lane said there was already a court decision on the matter and he was “not going to let this court be used as a place where parties can flout the requirements of the law.”
“Tell your client to stop,” Lane told lawyers for Giuliani. “It’s not complicated.”
Lawyers will meet with the judge again on Thursday to discuss the issue.
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