When Rudy Giuliani entered bankruptcy court in December of 2023, his clear goal was to delay the collection of a $148 million judgment owed to Ruby Freeman and Shaye Moss, without needing to post a supersedeas bond. Giuliani may not have fully considered the stringent obligations that come with bankruptcy, including living on a budget and producing monthly, truthful financial reports. His failure to adhere to these requirements has not only drawn the ire of the court but also of the creditors’ committee, which includes Moss, Dominion Voting Systems’ general counsel, and Noelle Dunphy, a former employee who has filed her own lawsuits against Giuliani.
Recently, the committee moved to place Giuliani under the control of a trustee. During a hearing, Judge Sean Lane indicated he is likely to agree with this move.
Despite an initial failure in April, Giuliani has again requested to lift the stay on the Freeman/Moss litigation to let him pursue his appeal while collection efforts are paused. In a motion filed recently, his attorney argued that circumstances have changed: Freeman and Moss are seeking to make the verdict non-dischargeable as a willful and malicious tort. Additionally, Giuliani’s lawyer claims there is merit to the appeal, based on a brief filed by Kenneth Caruso.
In a somewhat convoluted strategy, Giuliani’s lawyer also sent a letter to Judge Lane arguing that Freeman and Moss should not use collateral estoppel against Giuliani unless he is allowed to appeal. Freeman and Moss swiftly rebutted with a response highlighting that Giuliani himself chose the bankruptcy route, fully aware it would stay his appeal.
This ongoing saga showcases Giuliani’s relentless but arguably ill-fated efforts to utilize the courts to delay hefty defamation damages, much to the chagrin of his creditors and the presiding judge. For more detailed information on the case, refer to the original report.