Guinness was ordered to pay damages to other residents living in apartments at Manhattan's Stanhope Hotel after her bath overflowed and caused water damage to neighbouring properties.
The fashion designer has now sold off the home for $11.3 million (£7 million), making a $430,000 (£268,750) loss, but Guinness admits she feels relieved to have finally moved out.
She tells New York Post gossip column Page Six, "I am glad to be out of the building, the lawsuit caused me so much distress. I felt afraid every time I got in the elevator I'd bump into the neighbours... I have now moved into a hotel, this is a new beginning for me, a new chapter."