MANHATTAN (CN) — A New York federal judge on Friday declined to grant former New York City mayor Rudy Giuliani’s bid to toss out his creditors’ claims to collect his Florida lakeview apartment to satisfy his $148 million defamation judgment.
Former Georgia election workers Ruby Freeman and her daughter Wandrea “Shaye” Moss — who won the initial civil judgment against Giuliani after he falsely accused them of mishandling ballots during the 2020 election — claimed in follow-up civil complaint that the man once known as America’s Mayor is now also trying to mislead his judgment creditors by falsely claiming his Palm Beach condominium as his principal residence in an effort to qualify for homestead protection under Florida law.
Giuliani sought to have the Palm Beach condo collection efforts quashed ahead of a scheduled bench trial in January by asking U.S. District Judge Lewis Liman to abstain from ruling on the Florida residency issue, but the Trump-appointed judge found that Freeman and Moss were entitled to pursue their receivership claims in Manhattan federal court.
“It was perfectly appropriate for plaintiffs to sue defendant for a declaratory judgment here, where the most efficient remedy is available to resolve the question of plaintiff’s rights in the Palm Beach condo,” he wrote in an opinion made public Friday afternoon.
“Plaintiffs were not required to sue in Florida state court,” he added. “A receiver appointed by a federal court in New York may be given the authority under the C.P.L.R. to sell property of the judgment debtor wherever that property is located.”
Freeman and Moss are seeking appointment as receivers with power to sell the Palm Beach condo to satisfy their $148 million judgment — which Giuliani was ordered to pay after prevailing on their claims they were subjected to a relentless wave of hateful, violent and racist harassment by Trump supporters. Their lawyers argue that Giuliani treated the Florida apartment as a vacation home, not as his primary, permanent residence.
During his bankruptcy proceedings, Giuliani said the Palm Beach condominium had been appraised at $3.5 million.
According to a footnote in a separate court filing, Giuliani testified that the condo was appraised two years ago in connection with his divorce proceeding with ex-wife Judith Giuliani, so “it’s a pretty accurate appraisal.” Fees associated with the lakeview fifth-floor condo in the midcentury Southlake building exceed $15,000 per month, according to court documents.
Freeman and Moss’s seizure request included all of Giuliani’s assets, including his New York City apartment estimated to be worth more than $5 million. Also included were various pieces of memorabilia such as three Yankees World Series rings, a signed Joe DiMaggio shirt and outstanding claims for $2 million in unpaid legal fees from the Republican National Committee and the Trump 2020 campaign.
The ruling on the issue of Giuliani’s claim to primarily reside in Florida advances the former election workers dispute over homestead exemption to a bench trial, scheduled for mid-January.
Liman also ordered Giuliani to appear at a contempt hearing in early January over his delayed delivery of personal assets and withholding of financial information in response to the plaintiffs’ pretrial discovery requests.
Giuliani’s new lawyer Joseph Cammarata unsuccessfully asked Liman to move the trial date so that Giuliani can attend the 2025 inauguration of his longtime ally and former client Donald Trump.
The former New York City mayor filed for bankruptcy in late 2023, citing nearly $153 million in liabilities that included the trial judgment, unpaid taxes and legal fees.
Giuliani’s bankruptcy triggered an automatic stay in Washington, delaying any contempt motion until he consented to the permanent injunction in May.
In July 2024, a federal bankruptcy court judge tossed out Giuliani’s Chapter 11 case, paving the way for Freeman and Moss to collect their $148 million judgment against him.
U.S. Bankruptcy Judge Sean Lane wrote that dropping the case and putting a one-year ban on refiling was “in the best interest of creditors.”
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