Judge warns Giuliani about 'pyrrhic' victory in Florida condo dispute

[BumRushDaShow]

Source: Reuters

April 4, 2024 6:35 PM EDT


NEW YORK, April 4 (Reuters) - A U.S. bankruptcy judge said Thursday that Rudy Giuliani could be headed for a "pyrrhic victory" in a dispute over whether he should sell his $3.5 million Florida condo. U.S. Bankruptcy Judge Sean Lane said at a court hearing in White Plains, New York, that he would not immediately rule on creditors' attempt to force Giuliani, who is Republican former President Donald Trump's ex-lawyer, to list the property for sale, and he encouraged Giuliani and the creditors to work out a compromise.

Lane warned that creditors may escalate their efforts to control Giuliani's bankruptcy if their current request is denied, describing that as a possible pyrrhic victory in which someone wins a battle but loses a war. "The debtor may succeed in fending off this motion, only to be faced with far more draconian requests for relief in the future," Lane said.

Lane said Giuliani's creditors committee, composed of people and companies that have sued the former New York mayor, could escalate by asking for more traditional, but more extreme, bankruptcy remedies, like appointing a bankruptcy trustee to take control of Giuliani's assets or proposing their own plan for liquidating Giuliani's assets. "This is a warning shot across the bow," Lane said of the creditors' demand.

Giuliani filed for Chapter 11 protection six days after a federal jury in Washington, D.C., found that he had defamed two former Georgia election workers through false accusations that they helped rig the 2020 election against Trump and awarded them $148 million in damages. Giuliani has received limited permission to challenge the verdict, and he has asked a federal judge to rule in his favor or grant a new trial in the defamation lawsuit.

Read more: https://www.reuters.com/legal/judge-warns-giuliani-about-pyrrhic-victory-florida-condo-dispute-2024-04-04/

[no_hypocrisy]

1. I don't completely understand.

I read that Florida was the Mecca for those who expected to file for bankruptcy. IOW, you could lose everything but your primary residence in the state. And that's why I believed TSF re-located from NY to FL, to protect his interest in Mar-A-Lago.

Is or isn't Giuliani's primary residence in FL or NY? I'm confused.

[BumRushDaShow]

2. I had also heard that TX was one of those

that corporations could flee to for what they called a "Texas 2-step" bankruptcy. You have people like Musk who have decided to move out of places like Delaware to reincorporate there.

I think for 45, since he already had a presence in FL and had used it for a "winter residence", it was a natural to flee there. He did that residency move during his Presidency right around the time that AG James was investigating the fraud (it took her a year to get all the stuff together before charging). He even went to court down there because Mar-a-Lago had a very specific tax stipulation that required that the property not be used as a "residence" but was a "club". He fought that and apparently won. He does operate out of there and Bedminster (in NJ).

Ghouliani's primary residence is in NY but his condo there has been on the market for a long time now with no buyers. His kids are still there (don't forget he has a loon son Andrew who is supporting him every step of the way)!

[moniss]

6. There was a loophole in the restrictions that

allowed an "employee" of the club to live at the club. So he wedged himself in under that designation. Historically various cities would have zoning allowances for a "watchman's" quarters to be on site in areas not zoned for residential. In other words the night watchman at a factory in an area zoned as manufacturing could actually have a small bungalow/room on site so he could be there whenever needed.

But like anything with this guy he abused the intent of the exemption for an employee to go way beyond a "living quarters" and to literally make the whole place his residence.

[BumRushDaShow]

7. Thanks for the memory jog!

I remember following the lawsuits when he first did that "official change of residence", but that was awhile ago. I know his neighbors were pissed.

[moonshinegnomie]

3. its new york

[GregariousGroundhog]

5. Rudy filed in New York, and so New York bankruptcy rules apply

Florida courts may not generally issue writs of seisure and sale on primary residences in the state, but if a New York court issues one and the creditors file it with Florida's court system, Florida will act on it.

[marble falls]

4. Rudy meets rock and hard spot. Good.