Rudy Giuliani Found in Contempt of Court

Rudy Giuliani is the gift that keeps giving, and probably one of the biggest downfalls we have ever witnessed. From the Chief Prosecutor in the Southern District of New York, the former mayor of New York, and “America’s Mayor.” But now, Giuliani faces sanctions as he was found in contempt of court.

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Many times, I’ve said Giuliani’s cases are perfect examples of bankruptcy and civil law, and procedure. He voluntarily dismissed his bankruptcy case, most likely to avoid a Chapter 11 bankruptcy trustee getting involved, so now he’s dealing with the civil case.

Summary of the Defamation Lawsuit Against Rudy Giuliani

Giuliani was sued for defamation of character by Ruby Moss and Shaye Freeman, resulting in a $148 million judgment. Now the case is in the collection phase. This includes discovery, which is common in all cases. In this situation, financial documents are provided. But Giuliani hasn’t been complying with U.S. District Court Judge Beryl Howell’s ruling, stating at one point that discovery isn’t a shell game.

I have said many, many times before that if this were any other client, any other person, they would have been in jail a long time ago. For example, Giuliani was supposed to inventory his New York condominium at one point. Access was granted late, and reports indicated that Giuliani’s residence was cleaned out.

Now, there is a missing signed baseball jersey from Joe DiMaggio. Giuliani has stated he is “looking” into it. So it’s been one issue after another. But finally, Giuliani was found to be in contempt.

With contempt, this means that a court order wasn’t complied with. Contempt results in a hearing for the judge to decide whether the court order wasn’t adhered to willfully or on purpose, or if there are other valid explanations.

For example, suppose you have a child support obligation and, due to a job loss, you skipped several payments. Is that contempt? Yes, child support wasn’t paid, but the reasons are self-explanatory. If it were willful contempt, that means you didn’t pay child support on purpose because you had the funds.

So now what’s left is what punishment will be issued by the judge. It is safe to conclude that Giuliani has been given certain privileges that the average person will not get.

Since the judge has to decide the punishment, Giuliani’s lawyers filed a motion stating that, due to health issues such as several knee surgeries and a couple of stents in his heart, traveling to the hearing would not be possible. The motion also referenced physical threats to Giuliani. His lawyers are requesting a virtual appearance.

Of course, if someone is sick, we should accommodate them in court however possible. But Judge Howell requires an affidavit from Giuliani stating that he has not traveled in the last thirty days, nor will he do so thirty days from now.

So, where was Giuliani last seen? At an event at Mar-a-Lago. So clearly, he has traveled outside of his Palm Beach condominium.

What Happens After Contempt of Court?

What options does Judge Howell have for finding Giuliani in contempt? Typically, a party pays a fine, and we move on. But Giuliani owes $148 million. He can’t afford that. That’s why, initially, he filed for Chapter 11 bankruptcy. So, a monetary fine or sanction is pointless!

Now, to be clear, Giuliani is not destitute, even though he has had his bank accounts frozen. He owns a $3.2 million condo in Palm Beach. He does have a pension that’s going to be protected. But if a fine isn’t the answer, then what’s left? Jail.

Now, let me go back to bankruptcy law and civil procedure. Giuliani agreed that he committed defamatory acts. There was no trial on this issue because he signed an agreement.

• Rudy Giuliani Has His Feathers Ruffled in Court

This issue gets ignored by the mainstream media. There could be various reasons why he waived a trial. For example, avoiding the costs of expensive litigation. Giuliani probably believed, or at least hoped for, that a verdict would come in that he could afford, or at least have his supporters pay for it, since he is always begging for money. Did I mention he has a $3 million condo?

But Giuliani rolled the dice and lost to the tune of $148 million, later reduced by Judge Howell to $146 million. So Howell does have the authority to sanction Giuliani with jail. I’m also the first to admit that any of my clients would have been in jail long ago unless their name was Rudy Giuliani. Judge Howell has shown exceptional patience. But she also has to sanction an 80-year-old man with health issues. I’m assuming this is true, as that can be easily proven; otherwise, Giuliani is facing perjury.

So, if jail is the next obvious choice, is it physically possible for Giuliani? Maybe Judge Howell orders jail and requires a physical examination first. Time will tell, as the contempt hearing is scheduled for later this week. If there are any updates, I’ll be sure to post them.

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