Stormy's Attorney's Firm Ordered to Pay $10 Million Judgment

LOS ANGELES—A U.S. bankruptcy court judge on Tuesday ruled that a law firm connected with Stormy Daniels' attorney Michael Avenatti must pay $10 million to a former colleague he promised a $2 million payment last week. As first reported by the LA Times, Judge Catherine Bauer's ruling comes after Avenatti's firm, Eagan Avenatti LLP, failed to make the first payment on a $4.85 million settlement with lawyer Jason Frank, a one-time partner at the Newport Beach-based practice. At the same hearing a lawyer for the federal government also said Avenatti's firm failed to make a payment for back taxes that was due last week, CNN reported. Avenatti dismissed the ruling, according to CNN. "Completely irrelevant and a sideshow," Avenatti told CNN via a text message. "Nothing was issued against me personally. That firm has nothing to do with the case or the client. Who cares?" In December, Avenatti had personally guaranteed that his firm would pay Frank $4.85 million to settle his law firm's bankruptcy, but he and the firm missed the first $2 million installment that was due last week, leading to Tuesday's judgment. Eagan Avenatti is also delinquent on $440,291 in back taxes, penalties and interest that Avenatti promised would be paid last week, Assistant U.S. Atty. Najah Shariff told the judge, according to the LA Times.