Sonja Morgan Suffers Another Blow, Loses $7 Million Civil Judgment

NYPost.com:

Sister, can you spare $7 million? "The Real Housewives of New York City" cast member Sonja Morgan, who filed for bankruptcy last fall after losing a $7 million civil judgment, has suffered another blow, losing her bid to get her former lawyers to pay her millions for alleged malpractice.


The designer-clad, Botox-plumped ex-wife of J.P. Morgan heir John Morgan filed for bankruptcy in November, with court papers revealing she was $19.8 million in debt and had $13.5 million in assets.


Her liabilities included a $7 million judgment against her to pay LA-based Hannibal Pictures for costs of the would-be John Travolta film "Fast Flash to Bang Time," which she agreed in 2006 to fund but was never made.


The Post's Dan Mangan reports Hannibal accused Morgan, who has homes here, in Telluride and in France, of hiding assets in bank accounts, a claim that Morgan in court called "completely baseless."


But Morgan -- who describes herself as a "television personality" with an income of $26,000 a month -- had also filed a malpractice claim against her original lawyers in the Hannibal case. She confidently declared in court papers that she was expecting to be awarded a payout to be used for "all or part of the Hannibal judgment."


But on Thursday, an arbitrator denied Morgan any payout. "I don't agree with the judgment. I'm shocked," Morgan told us. How will she pay off her $7 million debt? "I don't know. I'm a hard worker. I'll survive. I've got to meet with my advisers." She added a phrase not often heard on "Housewives" -- "Mo' money, more problems."


Asked whether she might sell her $6 million Upper East Side town house, Morgan said, "I'm not thinking like that, but of course it's scary."

Damn. When it rains it pours.