Opinion
No. CIV. S-05-0581 FCD-JFM.
August 4, 2006
MEMORANDUM AND ORDER
This matter is before the court on Hardy Erich Brown Wilson's motion to withdraw as attorney of record for third party defendant, Global Distribution, Inc. Counsel brings this motion on the grounds that by its refusal to pay future litigation expenses, defendant has rendered it impossible for counsel to continue the employment effectively. Global Distribution, Inc. does not oppose the motion.
Local Rule 83-182(d) requires that attorneys may not withdraw from an action in which they have appeared without leave of the court upon noticed Motion. The Local Rule incorporates the requirements for withdrawal and the Rules of Professional Conduct of the State Bar of California. The Rules of Professional Conduct of the State Bar of California provide in pertinent part:
A member shall not withdraw from employment until the member has taken reasonable steps to avoid reasonably foreseeable prejudice to the rights of the client, including giving due notice to the client, allowing time for employment of other counsel, complying with rule 3-700(D), and complying with applicable laws and rules.
California Rules of Professional Conduct, Rule 3-700(A)(2). Counsel has complied with these requirements by providing defendant notice of its intent to bring the instant motion on or about July 21, 2006 and by providing the court with defendant's last known address. Third party defendant did not file an opposition to the instant motion.
Pursuant to California Rules of Professional Conduct, Rule 3-700(C), withdrawal is permitted in certain specified circumstances. Counsel contends that withdrawal is warranted under Rule 3-700(C)(1)(d), where the client's conduct renders it unreasonably difficult for the attorney to carry out the employment effectively, and Rule 3-700(C)(1)(f), where the client breaches an agreement or obligation to the attorney as to expenses or fees.
In his declaration, L. Kent Wyatt, an attorney with Hardy Erich Brown Wilson, represents that defendant is in breach of the fee agreement between counsel and defendant, and that such breach adversely affects his ability to fully and properly represent defendant. Mr. Wyatt states that the owner of Global Distribution, Inc., has informed him that he does not intend to pay current or future legal expenses. Mr. Wyatt further states that he has advised the owner of defendant Global Distribution, Inc., of his intent to withdraw.
Pursuant to E.D. Cal. L.R. 83-183(a), a corporation may not appear in propria persona. Thus, Global Distribution, Inc. must obtain counsel to avoid having a default judgment entered against it. The court advised Matt McDonnell, a representative of Global Distribution Inc., of the serious legal consequences of failing to find substitute representation at the motion hearing held on July 21, 2006. The court also stated that it would defer issuing the order granting the motion to withdraw for two weeks in order to allow Global Distribution, Inc. to obtain new counsel.
Matt McDonnell appeared at the hearing via telephone.
Based upon the materials submitted by counsel, Hardy Erich Brown Wilson's motion to withdraw as attorney of record is GRANTED. Hardy Erich Brown Wilson shall comply with the requirements of California Rules of Professional Conduct, Rule 3-700(D).
IT IS SO ORDERED.