Former New York City Mayor Rudy Giuliani spoke to reporters as he exited his defamation trial in Washington on Friday, December 15, 2023. In a landmark verdict, a jury awarded significant damages to two former Georgia election workers who had filed a defamation lawsuit against Giuliani. The lawsuit was filed in response to false statements made by Giuliani in 2020, which resulted in their lives being upended by racist threats and harassment. The trial outcome marks a significant legal victory for the plaintiffs.
Rudy Giuliani is seeking to bring on board a new member for his legal team, stressing the utmost importance of a successful appeal in the recently upheld $146 million defamation judgment against him by Georgia election workers. This judgment has led him to file for Chapter 11 bankruptcy proceedings.
Giuliani’s attorney, Gary Fischoff, has submitted an application to U.S. Bankruptcy Sean Lane, seeking permission to hire Kenneth Caruso as “special litigation counsel” for a flat fee of $250,000. The engagement would commence on March 20. Fischoff explained that Caruso and his firm would primarily focus on an appeal to the U.S. Court of Appeals for the D.C. Circuit. Giuliani’s legal team hopes that this appeal will result in a significantly reduced payment to Ruby Freeman and Shaye Moss, or potentially even eliminate the judgment entirely. It is worth noting that the original judgment amount of $148 million has been slightly reduced to $146 million as part of the final judgment.
Giuliani’s legal team argues that the “outsized judgment” is unreasonable and poses a challenge in satisfying his other creditors.
According to Fischoff, the Debtor finds the exorbitant judgment to be unjust and not a true reflection of the actual damages, if any, suffered by the Plaintiffs. The Debtor remains confident in successfully modifying or overturning the judgment. A significant reduction in the Freeman claim would provide substantial benefits to the Debtor, their estate, and their creditors.
In the Wednesday request, it was emphasized the importance of hiring Caruso to ensure Giuliani receives exceptional representation in the appeal of the Freeman v. Giuliani judgment. The success of the bankruptcy reorganization proceedings heavily relies on this.
In the filing, Caruso stated that he and Giuliani have been friends and colleagues since the 1970s, both in government service and private practice.
Caruso, a former “special assistant” to Giuliani, boasts extensive experience defending defamation cases. With his seasoned appellate skills, he is well-equipped to provide effective representation to Giuliani, bringing a fresh perspective to the table.
According to Caruso’s declaration, it is quite common for a party to switch lawyers when a case transitions from a trial court to an appellate court. In fact, this change in counsel can often be beneficial as it brings a fresh perspective to the case, even if it was well-handled during the trial stage.
Caruso confidently stated that he would bring a fresh perspective to the Appeal. He emphasized the importance of this perspective, especially considering the substantial damages awarded in the judgment being challenged on the Appeal.
The lawyer delved into the long-standing connection between himself and Giuliani, dating all the way back to 1977, just six years before Giuliani’s rise to the position of U.S. Attorney for the Southern District of New York. Caruso revealed that their professional relationship endured even during Giuliani’s tenure as mayor of New York City.
“In his time as Mayor, he entrusted me with important roles and responsibilities. I had the honor of serving on the Board of Directors of the Metropolitan Transportation Authority, the New York City Charter Revision Commission, and the Mayor’s Appointments Committee,” stated the declaration.
Caruso, a former assistant U.S. Attorney in the Southern District of New York, highlighted that he and Giuliani were law partners at Bracewell & Giuliani from 2005 to 2010. The attorney also mentioned that he recently worked at the firm Mukasey Young LLP, where Marc Mukasey, the son of former U.S. Attorney General Michael Mukasey (a close friend of Giuliani’s), is a founding partner. Similar to Caruso and Giuliani, Mukasey was also a partner at Bracewell & Giuliani.
Lawyers representing the Official Committee of Unsecured Creditors have filed a set of subpoena notices on Friday. These notices include requests for documents from Andrew Giuliani, the son of Giuliani, as well as Giuliani’s companies and his legal defense funds.
