In a recent development, former New York mayor Rudy Giuliani has been granted permission by U.S. Bankruptcy Judge, Sean Lane, to contest a $148 million judgment. This judgment arises from false allegations he made against two Georgia election workers, Ruby Freeman and Wandrea’ ArShaye “Shaye” Moss, whom Giuliani falsely accused of manipulating the results of the 2020 American Presidential election in favor of Joe Biden.
The judgment could be mitigated in Chapter 11, although this isn’t guaranteed. It is important to note that despite the court’s permission, Giuliani might face stiff resistance if he tries for financial respite.
During the hearing conducted in White Plains, New York on January 19, 2024, the bankruptcy judge gave Giuliani the option to request a second trial in Federal Court over the damages he owes to the poll workers. However, Giuliani’s lawyer has mentioned that the ex-mayor has limited assets, which could impact his ability to pay the judgement. An opportunity to contest this ruling does not necessarily equate to a successful appeal. The complexities of this case suggest that it may serve as a crucial reference for future objections related to the payment of penalties in bankruptcy court.
As the situation unfolds, we will continue to follow the developments and how they reshape or reaffirm current practices in bankruptcy and defamation law.