The man who has for years served as the preeminent spokesman for Former President Donald Trump’s debunked election denial claims ended his bid for bankruptcy protection Friday.
Rudy Giuliani — once known as “America’s mayor” and recently disparaged by his own attorney as “an 80-year-old disbarred lawyer” — faces a nearly $150 million judgment for defaming a pair of Georgia election workers in the wake of the 2020 election. He also still faces additional lawsuits related to his conduct as head of Trump’s post-election legal team.
Last year, after losing the case brought by Ruby Freeman and Shaye Moss, Giuliani declared bankruptcy and attempted to get permission to appeal that case without filing an otherwise-required appeal bond his subsequent filings indicate he is unable to pay.
Judge Sean Lane of the Federal Bankruptcy Court for New York’s Southern District wrote Friday that it is in the best interest of creditors to allow them to pursue Giuliani outside the bankruptcy process.
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That decision allows the mother and daughter to begin pursuing Giuliani’s assets as he seeks to appeal the case, but also revives numerous other cases against Giuliani — including those by Dominion Voting Systems and former employee Noelle Dunphy.
"Ruby Freeman and Shaye Moss have already waited too long for justice. We are pleased the Court saw through Mr. Giuliani's games and put a stop to his abuse of the bankruptcy process. We will begin enforcing our judgment against him ASAP,” said Rachel C. Strickland, Freeman and Moss’s attorney.
Not only is Giuliani no longer protected by bankruptcy, filings indicate he could have to turn over his bank accounts and sell his Manhattan apartment to raise up to $350,000 towards fees related to the unsuccessful bankruptcy attempt.
After fighting a losing battle for months against lawyers for Freeman and Moss, as well as the plaintiffs in numerous unrelated suits he still faces, Giuliani had asked Lane to begin a new type of bankruptcy proceeding involving the sale of his assets.
But after facing pushback, he agreed to withdraw his bankruptcy claim altogether — a move supported by Freeman and Moss but opposed by lawyers for other parties pursuing legal claims against Giuliani.
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It’s a win for Freeman and Moss, according to their attorneys.
“The beginning, middle, and end of this case have been about my clients and their judgment. The filing was a bad faith litigation tactic … He regards this court as a pause button on his woes,” said Rachel Strickland at a Tuesday hearing.
Moments later Giuliani — attending remotely via telephone — dramatically interrupted the proceedings to claim Strickland’s arguments were “highly defamatory”.
Lane cautioned the onetime New York City mayor and former U.S. attorney not to disrupt court proceedings.
“Sir, everybody gets a chance to be heard but what you can't do is interrupt somebody else while they're being heard. So, I really do not want to be forced to have to cut your line off, but I'm telling you how it's going to be in terms of order of presentation. Again, I'm happy to take a break so you can confer with counsel,” Lane said.
Georgia election workers Freeman and Moss won their judgment against Giuliani in Washington, D.C. last year when a court ruled that Giuliani’s repeated claims they had participated in ballot fraud during the 2020 election were false.
“Mr. Giuliani intends to promptly pursue his appeal of the Freeman defamation judgment,” Gary Fischoff, attorney for Giuliani.
Friday’s ruling allows their attorneys to restart attempts to collect the judgment against Giuliani and to pursue further sanctions for what they allege is ongoing defamation in his comments about the election over the 11 months since U.S. District Court Judge Beryl Howell rendered judgment in their original case.
"We think the court incorrectly adopted the creditors’ view of the facts of the case but reached the correct result by dismissing the case," said Heath Berger, who also represents Giuliani.
