There are a few little things to report on Teresa’s Giudice’s court case against her former bankruptcy lawyer, James Kridel. Personally, I find Teresa’s constant attempt to find anyone to blame for her actions sad and ridiculous.
Kridel feels much the same way I do and asked the judge to throw out the case. His stance is obvious, Teresa went to jail for mortgage and bankruptcy fraud. Even it if he did something to cause her bankruptcy filing to be fraudulent, she had lots of federal charges not related to the bankruptcy at all. Like all those fraudulent meetings with bankers where she produced fake W-2s from jobs she knew full well she didn’t have. Teresa has lied repeatedly about her assets, and most importantly she signed documents she reviewed that left off most of her actual assets during the bankruptcy filing and she signed a plea deal!
Despite all of that, a judge ruled against Kridel and is allowing Teresa to go on with her ridiculous case. To me this is a non-story. Idiots can file whatever cases they feel like paying lawyers for with little to any actual legal standing. I read this information and decided it was not particularly newsworthy and didn’t change a thing. The case is still moving forward at the usual glacial pace.
But then, something sort of interesting did happen. Last Friday, the original bankruptcy trustee, John Sywilok, showed up to court with a motion of his own! Say what? If you recall, because Teresa (and Joe) committed fraud in their bankruptcy filing, the bankruptcy was not discharged and Teresa (and Joe) still owe their creditors over $13 million dollars in unsecured debt. Instead of discharging the bankruptcy, Sywilok attempted to seize assets to be redistributed to the creditors who the Giudices fleeced. He was only able to recover less than $10,000 toward the over $13 million dollars due to the creditors.
So when he gets wind that Teresa has a lawsuit, no matter how ridiculous, that could result in a five million dollar judgment (if all the jurors are dropping acid during deliberations) Sywilok filed a motion with the court.
Basically, Sywilok has two major contentions, first he claims that because the cause of action in the bankruptcy malpractice case were done prior to any bankruptcy being filed, (and eventually denied) that any judgment by the courts would be an asset of the bankruptcy estate and not the listed plaintiff. Therefore, he requests that the bankruptcy case be reopened and assigned a trustee. Sywilok says that the trustee assigned to the case will then determine if there is any meaningful dividend that can be divided and returned to the creditors.
That trustee will also motion to replace the plaintiff (Teresa) as the actual harmed party. This would essentially give Teresa no standing in the case at all and any award by the court would be divided among the debtors.
A hearing has been set on this matter for May 24,2016.
While I would love for the court to remove Teresa as the plaintiff of her own case, I honestly do not see that regardless of whoever is plaintiff that anyone has a case. I believe that Kridel will win the case either way and could in fact win attorneys fees from whoever the plaintiff ends up being. Also how would the bankruptcy trustee argue fraud in a situation between an attorney and a client?
And that’s the tea.