The judge specified that the legal fees must not be paid from Mr. Giuliani’s current assets.
A New York bankruptcy judge has allowed Rudy Giuliani to appeal a $148 million defamation verdict so long as he uses pre-approved donors for legal expenses.
U.S. Bankruptcy Judge Sean Lane, in his order on Tuesday, specified that such fees and expenses must not be paid from Mr. Giuliani’s current assets.
“Any fees and expenses incurred by the Debtor and his advisors in the Freeman Litigation in connection with any Post-Trial Filings and the Notice of Appeal shall not be paid by, and shall not result in a claim against, the Debtor or his estate,” Judge Lane wrote.
The former New York City mayor filed for bankruptcy protection late last year, one day after he was ordered to immediately pay $148 million to two former Georgia election workers. Ruby Freeman and her daughter, Wandrea Moss, sued him for defamation while he was working as a lawyer for former President Donald Trump.
In early January, Mr. Giuliani asked the New York bankruptcy judge overseeing his case to lift the automatic stay, a legal provision that pauses certain proceedings during bankruptcy, for the “limited purpose” of filing post-judgment motions to modify the judgment.
Judge Lane, from the Southern District of New York, granted the limited relief on Tuesday.
The judge’s order permits Mr. Giuliani to file a notice of appeal and post-trial motions in the Freeman case.
However, Judge Lane stated that the former mayor must obtain the judge’s consent for any external payment of legal fees and expenses, which can’t come from Mr. Giuliani’s current assets.
Furthermore, any parties paying such fees or expenses are prohibited from seeking reimbursement from Mr. Giuliani or his estate until the court approves such payments.
According to the order, Mr. Giuliani is required to provide at least five business days’ notice to the Objecting Parties and the official committee of unsecured creditors before filing any post-trial motions, except for any motions filed on Feb. 20.
