01/24/2012 03:29 pm ET Updated Mar 25, 2012

Lawsuit Against Taylor Armstrong Could Cost Her Spot on RHOBH Season 3

As Real Housewives of Beverly Hills star Taylor Armstrong prepares to head to trial in a $1.5 million breach-of-contract lawsuit, reports claim Bravo and Armstrong's cast mates worry they'll be dragged into the court battle. According to the New York Daily News, sources say Bravo feels Armstrong has become a liability for the show and that RHOBH cast members fear "becoming party to the litigation." With a July 11th trial date set for Armstrong's case, it's likely that in the coming months Bravo will indeed be questioned about one of their most controversial stars. filed suit against both Russell & Taylor Armstrong just prior to his death seeking damages of $1.5 million on claims he breached a previous settlement. Russell Armstrong had been the largest shareholder of the then privately held company, which provides secure Personal Health Records and electronic safe deposit box storage solutions. After it was discovered that Armstrong had misappropriated investor money and diverted shares of the company, he was removed from the board and settled with them for $250,000. Under the terms of his original settlement, Armstrong was required to identify anyone who he had sold shares of MMRGlobal to. However, Armstrong failed to do so, and he and his wife were slapped with a $1.5 million breach-of-contract suit because of it.

Sadly, we all know where the story goes from here. Shortly after MMR filed suit, Armstrong committed suicide, leaving Taylor alone to answer for his mess. At issue now is whether Taylor has the money to pay the $1.5 million in damages should MMRGlobal win their suit. While media reports have claimed Russell left Taylor broke, MMRGlobal CEO Bob Lorsch isn't buying it, and likely will go digging to Bravo for some answers. In a past OTC Showcase interview, Lorsch said, "Where are the millions of dollars that flowed through their bank accounts and pockets? We have no reason to believe that Russell was broke or that Taylor is a victim of Russell without the ability to pay damages to MMR."

Alluding to plans to question Bravo over Taylor Armstrong's value, Lorsch said in the interview, "What about her consulting business which they discussed on the show and where are those contracts and fees? And what about sponsor gifts, personal appearance fees and reimbursements as a result of being on the show as well as any payments from being on The Real Housewives of Beverly Hills?" It seems likely that if Bravo execs haven't already been questioned about Taylor Armstrong's income from the show and other income they know of from filming her, they will be at some time before trial in July. Network execs could even be dragged in to testify in court. Could you imagine Andy Cohen testifying under oath about the series? No wonder why the network is trying to distance itself from the troubled star!

At this point it seems Taylor's legal battles have become too dramatic for the drama-loving network and that she's more hassle then she's worth. It's likely Taylor's ensuing court drama could cost her a spot on Season 3 of RHOBH, which Camille Grammer alluded to in an interview with The Huffington Post when she admitted Bravo execs told her they were going to start casting for new housewives.

And it seems Bravo execs has learned from their lessons, trying to protect themselves from being dragged into legal drama in the future. In a casting application obtained by the New York Daily News, Bravo asks, "Have you ever been convicted of a felony or a misdemeanor?" The 51-question document also asks candidates if they've ever done "anything that would cause the program producers and/or the cable network and affiliates any embarrassment or monetary loss?"

So for Taylor fans, next week's reunion special of RHOBH may very well be your last chance to see her on the show.