West Palm Beach, FL / Tom Girardi, of Los Angeles law firm Girardi Keese, and wife Erika Jayne, of The Real Housewives of Beverly Hills fame, have been sued by another law firm for supposedly embezzling settlement money that should have been for families of the Lion Air crash victims from 2018.
According to the lawsuit filed by the Edelson law firm, local counsel for the case’s litigation and settlement process, Girardi used Boeing’s settlement money to fund he and his wife’s “lavish Beverly Hills lifestyles,” amidst “a downward spiral of mounting debts and dwindling funds.”
Edelson is seeking a court judgment that would compel a complete accounting of all the settlement funds transferred by Boeing to Girardi’s law firm, which should then be distributed as appropriate both to the families of the victims and Edelson. Either that or the court should judge that it be put in a constructive trust. Brian O’Connell trust lawyer Palm Beach helps explain further what a conservative trust entails.
Brian O’Connell Trust Litigation Lawyer West Palm Beach on Constructive Trust
According to Brian O’Connell trust lawyer West Palm Beach, in a constructive trust, the settlor turns over property to a party that is supposedly representative of the actual, intended recipient but said representative party misused or mishandled the property. The court may impose a constructive trust so that unjust enrichment by the representative party may be avoided.
In so doing, the court also may compel the said party to turn over the property in question to its rightful recipient. In this case, the settlor is Boeing, the property in question is the settlement money, and the intended recipient is the families of the victims. For Brian O’Connell trust lawyer West Palm Beach, Girardi, who received the money on behalf of the victims, is the representative party who is now being accused of mishandling the money that’s not his, to begin with.
Brian O’Connell Trust Litigation Lawyer Palm Beach on What Makes Constructive Trust Different
The main thing that differentiates constructive trust from other types of trust is the role that the court plays in its imposition. It is a directive straight from the court that holds the third party in possession of the property in question but prevents them from benefiting in any way from it. As lawyers like Brian O’Connell explains, while the Girardi’s are in possession of the settlement money, the constructive trust will prevent them from accessing it.
Ultimately, the goal is for the complete settlement money paid by Boeing to reach each and every recipient that it was intended for. But first, the funds must be accounted for to determine whether it was indeed mishandled by the Girardi’s.
As lawyers such as Brian O’Connell trust lawyer Palm Beach explains, constructive trust does not stand in perpetuity, but rather has a specific time limit for the validity of its imposition.