'America's Bankrupt Mayor' Ordered to Pay His Legal Bills
Former Mayor Rudy Giuliani speaking with the media at the 2019 Student Action Summit hosted by Turning Point USA at the Palm Beach County Convention Center in West Palm Beach, Florida. Photo courtesy of Gage Skidmore under CC BY-SA 2.0.
Rudy Giuliani, once hailed as "America's mayor" for his leadership after the Sept. 11 attacks, now faces a staggering financial blow. A New York judge has reportedly ordered the former New York City mayor to pay $1.36 million in unpaid legal fees to his former lawyer Robert Costello and the law firm Davidoff Hutcher & Citron LLP. With interest, the total amount Giuliani owes approaches $1.6 million. This ruling stems from legal work related to investigations into Giuliani's efforts to overturn the 2020 presidential election results. The question on many minds: Can Giuliani afford this mounting debt, and what happens next?
The Legal Fee Battle
The ruling came from New York County Supreme Court Justice Arthur Engoron, who granted summary judgment in favor of Costello and the Davidoff firm. The lawsuit, filed in 2023, accused Giuliani of paying only a fraction of nearly $1.6 million in legal fees for work performed between November 2019 and July 2023. Giuliani last paid a reported $10,000 in mid-September 2023, shortly after a $100,000-a-plate fundraiser held for him at Donald Trump's Bedminster golf club.
Costello, a former federal prosecutor, represented Giuliani in a range of high-profile matters. These included investigations into Giuliani's business dealings in Ukraine, state and federal probes related to his role in challenging the 2020 election outcome, and inquiries into the January 6 Capitol attack. The firm also assisted Giuliani in civil lawsuits and disciplinary proceedings that ultimately led to his disbarment in New York and Washington.
Giuliani argued that he had no retainer agreement with the Davidoff firm itself, only with Costello personally, as reported by USA Today. He also claimed he never agreed to the firm's hourly rates and denied receiving monthly invoices. However, Judge Engoron rejected these claims, ruling that Giuliani had breached the retainer agreement by failing to pay invoices in full and on time.
Financial Troubles Mount
This legal fee judgment adds to a growing list of financial and legal setbacks for Giuliani. In recent years, he has filed for bankruptcy, faced threats of jail time over unpaid debts to his third ex-wife, and settled a $148 million defamation judgment with two former Georgia election workers he falsely accused of election fraud. Giuliani was also disbarred in New York and Washington for repeatedly making false claims about the 2020 election.
In August, Giuliani, now 81, suffered a fractured vertebra and other injuries in a car crash in New Hampshire. Shortly after, former President Donald Trump announced plans to award Giuliani the Presidential Medal of Freedom, the nation's highest civilian honor.
The Spokesperson's Response
Giuliani's spokesperson, Ted Goodman, framed the judge's decision as politically motivated, calling it a partisan attack on a "good friend and former personal lawyer" of President Trump. Goodman argued that the ruling "flies in the face of justice," as reported by ABC News.
What Comes Next?
Giuliani has announced plans to appeal the ruling. The financial strain raises questions about his ability to cover the costs, given his history of bankruptcy and ongoing legal battles, including criminal charges in Georgia and Arizona related to his election interference efforts. Beyond the immediate financial hit, the judgment underscores the mounting personal and professional consequences Giuliani faces as he defends himself on multiple fronts. Legal experts note that an appeal could delay payment but is unlikely to erase the debt, while his shrinking resources and disbarment limit his earning potential. The outcome of these cases may ultimately determine not just his financial solvency but also his legacy as one of the most controversial political figures of the post-2020 election era.
References: Rudy Giuliani is ordered to pay $1.36 million in legal bills | Rudy Giuliani must pay his defense lawyers $1.4 million, judge rules | Rudy Giuliani ordered to pay $1.36M in legal fees by judge
