Judge Frustrated with Giuliani Bankruptcy Case, Denies $148M Judgment Challenge

Giuliani faces scrutiny over financial mismanagement in bankruptcy case.

by Nouman Rasool
Judge Frustrated with Giuliani Bankruptcy Case, Denies $148M Judgment Challenge
© Brandon Bell/Getty Images

U.S. Bankruptcy Judge Sean Lane chided Rudy Giuliani for getting behind in his bankruptcy and said the former New York City mayor shouldn't be able to keep not paying what he owes. During a hearing on Tuesday, Lane dismissed Giuliani's attempt to raise concerns over a $148 million defamation judgment—the biggest issue in the December bankruptcy case.

The judgment was given to two former election workers whom Giuliani falsely accused of involvement in a 2020 election conspiracy. Giuliani's financial difficulties were aggravated when he missed deadlines for filing financial disclosure reports and an inability to sell properties in New York and Florida.

He was also recently suspended from his daily show on WABC Radio for multiple violations of a ban on discussing discredited claims about the 2020 election. Rachel Strickland, counsel for the election workers, criticized Giuliani for his inaction, saying, "They have done nothing.

They sold nothing. They settled nothing." She also suggested that Giuliani's suspension from WABC Radio was a deliberate attempt to avoid financial responsibility by flouting his employer's restrictions.

Judge Remains Unconvinced

Judge Lane echoed Strickland's sentiments, stating, "I agree with you, and I am disturbed about the status of this case." Despite assurances from Giuliani's attorneys that he has new work lined up to generate income and that his Manhattan apartment could soon be sold, Judge Lane remained unconvinced.

The attorneys also indicated that they had resolved certain issues and would soon make the necessary financial filings. Heath Berger, one of Giuliani's lawyers, claimed, "They finally have, I think, gotten things on track." However, the judge's skepticism was evident when he rejected Giuliani's request to lift an automatic stay, which would have allowed him to pursue post-judgment litigation in the defamation case.

Lawyers for Giuliani's creditors argued that lifting the stay would only delay the bankruptcy proceedings further. Judge Lane also addressed a request from the election workers' lawyers to prohibit Giuliani from making additional defamatory statements against them.

While he did not make an immediate decision, Lane emphasized the importance of adhering to court decisions, stating, "I am not going to let this court be used as a place where parties can flout the requirements of the law." He added a direct message to Giuliani's lawyers, "Tell your client to stop.

It's not complicated." The next meeting between the lawyers and Judge Lane is scheduled for Thursday, where they will continue to discuss the ongoing issues in Giuliani's bankruptcy case.