Summit Entertainment LLC v. Preferred Fragrance et al

Filing 27

MINUTES (IN CHAMBERS) by Judge Christina A. Snyder: The Court hereby GRANTS William Thomashower, Schwartz & Thomashower LLP, Thomas H. Edwards, andthe Law Firm of Thomas H. Edwards' motion to be relieved as counsel for defendant Preferred Fragra nce, Inc. 17 . The moving parties are hereby ordered to provide Preferred with notice of the Court's order in accordance with Local Rule 83-2.9.2.3. Since Preferred is a corporate entity, and as such may not appear pro se, the moving parties ar e ordered to inform Preferred that it must retain new counsel within 30 days of the date this order takes effect. The moving parties shall advise Preferred that its failure to retain new counsel or otherwise respond within 30 days may result in the i mposition of sanctions or the entry of default. The Court hereby GRANTS plaintiff's motion for leave to file a first amended complaint, adding Fragrance as a defendant in this action 18 . The First Amended Complaint shall be filed forthwith and deemed filed as of the date of this minute order, and thereafter served on Fragrance. Court Reporter: Not Present. (gk)

UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.

CV 13-4310 CAS (AJWx)

Title

SUMMIT ENTERTAINMENT LLC V. PREFERRED FRAGRANCE, ET
AL.

Present: The Honorable

Date

December 4, 2013

CHRISTINA A. SNYDER

Catherine Jeang
Deputy Clerk

Not Present
Court Reporter / Recorder

N/A
Tape No.

Attorneys Present for Plaintiffs:

Attorneys Present for Defendants:

Not Present

Not Present

Proceedings:

(IN CHAMBERS:) MOTION OF WILLIAM
THOMASHOWER, SCHWARTZ & THOMASHOWER,
THOMAS H. EDWARDS, AND LAW OFFICE OF THOMAS
H. EDWARDS TO WITHDRAW AS COUNSEL FOR
DEFENDANT PREFERRED FRAGRANCE (Dkt. #17, filed
November 14, 2013)
(IN CHAMBERS:) PLAINTIFF’S MOTION FOR LEAVE TO
FILE FIRST AMENDED COMPLAINT (Dkt, #18, filed
November 18, 2013)

The Court finds the above-referenced motions appropriate for decision without oral
argument. Fed. R. Civ. P. 78; Local Rule 7-15. Accordingly, the hearing date of
December 16, 2013, is vacated, and the matter is hereby taken under submission.
A.

Motion to Withdraw as Counsel

William Thomashower, Schwartz & Thomashower LLP, Thomas H. Edwards, and
the Law Firm of Thomas H. Edwards (the “moving parties”) move to withdraw as
counsel for defendant Preferred Fragrance, Inc. (“Preferred”) on the grounds of a conflict
of interest. Mot. Withdraw 1. According to the moving parties, Preferred sold all of its
assets to Fragrance Acquisitions LLC (“Fragrance”) in 2011. Id. at 2. The moving
parties have represented Fragrance in numerous matters in recent years. Id. The moving
parties have also been retained to represent both Preferred and Fragrance in this action,

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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.

CV 13-4310 CAS (AJWx)

Date

December 4, 2013

Title

SUMMIT ENTERTAINMENT LLC V. PREFERRED FRAGRANCE, ET
AL.

although Fragrance is not named as a defendant.1 Id. at 2-3. The moving parties contend
that Preferred and Fragrance have recently become adverse parties due to disputes arising
over the 2011 asset sale. Id. at 3. Plaintiff responds that it does not oppose the moving
parties’ motion to withdraw. Opp. Mot. Withdraw 1-4. However, plaintiff contends that
the conflict of interest identified by the moving parties has existed throughout the
pendency of this action. Id. Plaintiff also contends that the moving parties’ motion does
not comply with Local Rules 7-3 and 83-2.3.4. Id. at 4.
Local Rule 83-2.9.2.1 allows an attorney to withdraw as counsel only upon leave
of court. If withdrawal will cause delay in the case, the court will not allow the attorney
to withdraw unless “good cause is shown and the ends of justice require [such relief].” L.
R. 83-2.9.2.4. Failure to pay attorneys’ fees is normally sufficient grounds for
withdrawal. Darby v. City of Torrance, 810 F. Supp. 275, 276 (C.D. Cal. 1992) (citing
Liberty-Ellis Island Found., Inc. v. Int’l United Indus., Inc., 110 F.R.D. 395, 397
(S.D.N.Y. 1986)). If withdrawal is allowed, the affected parties then “shall appear pro se
or appoint another attorney by a written substitution of attorney.” L.R. 83-2.9.2.3.
However, a corporation “may not appear in any action or proceeding pro se.” L.R. 832.10.1.
The Court concludes that the moving parties have made a sufficient showing of
good cause, and thus hereby GRANTS the motion to be relieved as counsel. The moving
parties are hereby ordered to provide Preferred with notice of the Court’s order in
accordance with Local Rule 83-2.9.2.3. Since Preferred is a corporate entity, and as such
may not appear pro se, the moving parties are ordered to inform Preferred that it must
retain new counsel within thirty (30) days of the date this order takes effect. The moving
parties shall advise Preferred that its failure to retain new counsel or otherwise respond
within thirty (30) days may result in the imposition of sanctions or the entry of default.

1

The moving parties state that they have informed plaintiff that, as a result of the
2011 asset sale, Fragrance is the entity which owns and sells the products involved in the
instant trademark infringement action. Mot. Withdraw 2-3. Plaintiff moved for leave to
file an amended complaint on November 18, 2013, that adds Fragrance as a defendant in
this action. Dkt. #18. As set forth below, the Court is vacating the hearing on that
motion, taking the matter under submission, and granting the motion.
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UNITED STATES DISTRICT COURT
CENTRAL DISTRICT OF CALIFORNIA
CIVIL MINUTES - GENERAL
Case No.

CV 13-4310 CAS (AJWx)

Date

December 4, 2013

Title

SUMMIT ENTERTAINMENT LLC V. PREFERRED FRAGRANCE, ET
AL.

The moving parties shall attach a copy of this order to the letter, and shall otherwise
comply with all applicable rules of professional responsibility.
B.

Motion for Leave to File First Amended Complaint

As for plaintiff’s motion for leave to file a first amended complaint, adding
Fragrance as a defendant in this action, dkt. #18, the Court hereby GRANTS said motion.
The First Amended Complaint shall be filed forthwith and deemed filed as of the date of
this minute order, and thereafter served on Fragrance.
IT IS SO ORDERED.
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Initials of Preparer

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