E. & J. Gallo Winery

Filing 95

ORDER denying ex parte application to withdraw as counsel. However, the Court will extend Grenade's deadline to file objections to plaintiff's bill of costs no later than 10/10/2014. Signed by Magistrate Judge Stanley A. Boone on 9/23/2014. (Hernandez, M)

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UNITED STATES DISTRICT COURT

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EASTERN DISTRICT OF CALIFORNIA

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E. & J. GALLO WINERY,
Plaintiff,

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ORDER DENYING EX PARTE
APPLICATION TO WITHDRAW AS
COUNSEL

v.

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Case No. 1:13-cv-00770-AWI-SAB

GRENADE BEVERAGE LLC,
Defendant.

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On September 22, 2014, Kronenberg Law, P.C. (“Kronenberg”) filed an ex parte

18 application to withdraw as counsel of record for Defendant Grenade Beverage LLC (“Grenade”).
19 (ECF No. 93.) Kronenberg informs the Court that it was retained by Grenade’s insurer to
20 provide a defense to Grenade under the terms of its insurance policy. However, Grenade’s
21 insurer is no longer providing a defense to Grenade since judgment was entered in this action on
22 September 8, 2014.
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Kronenberg claims that Grenade has had “personal counsel” since August 11, 2014.

24 However, for reasons unknown, Grenade has not completed a substitution of counsel form
25 substituting Kronenberg for this new “personal counsel.” Kronenberg has not been retained to
26 perform any further work in this matter, including the preparation of objections to Plaintiff’s bill
27 of cost, or work on an appeal from judgment. Therefore, Kronenberg wishes to withdraw as
28 counsel.

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Local Rule 182(d) governs attorney withdrawal, and states:
(d)
Withdrawal. Unless otherwise provided herein, an attorney
who has appeared may not withdraw leaving the client in propria
persona without leave of court upon noticed motion and notice to
the client and all other parties who have appeared. The attorney
shall provide an affidavit stating the current or last known address
or addresses of the client and the efforts made to notify the client
of the motion to withdraw. Withdrawal as attorney is governed by
the Rules of Professional Conduct of the State Bar of California,
and the attorney shall conform to the requirements of those Rules.
The authority and duty of the attorney of record shall continue
until relieved by order of the Court issued hereunder. Leave to
withdraw may be granted subject to such appropriate conditions as
the Court deems fit.

9 The Rules of Professional Conduct of the State Bar of California state that:
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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).

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The rules permit withdrawal

because of client conduct which “renders it unreasonably difficult for the member to carry out
the employment effectively” or “breaches an agreement or obligation to the member as to
expenses or fees.” California Rules of Professional Conduct Rule 3-700(C)(1)(d) and (f).

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The Court would be amenable to allowing Grenade to substitute new counsel in for
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Kronenberg. However, the Court is not amenable to allowing Kronenberg to simply withdraw
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and leave Grenade without counsel. Withdrawal in such circumstances would delay resolution
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of this case and interfere with the administration of justice, two factors the Court considers in
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ruling on a motion to withdraw. See Canandaigua Wine Co., Inc. v. Edwin Moldauer, No. 1:0222
cv-06599 OWW DLB, 2009 WL 89141, at *1 (E.D. Cal. Jan. 14, 2009).
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Furthermore, Kronenberg’s request to withdraw is conspicuously bereft of details

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explaining why Kronenberg must withdraw on such short notice. There is no explanation of why
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Grenade’s insurance policy prevents Kronenberg from performing post-judgment work in this

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action. It is unclear who is responsible for the alleged breakdown in communication between
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Grenade and Kronenberg.

It is unclear why Grenade’s new “personal counsel” has not

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1 completed a substitution of counsel form.
It is unclear who is at fault for causing this disruption which threatens to delay orderly

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3 resolution of this action. Accordingly, the Court denies the request to withdraw as counsel of
4 record without prejudice. Grenade may file a substitution of counsel, to the extent that it retains
5 new counsel. Otherwise, if Kronenberg wishes to file a renewed motion to withdraw as counsel,
6 along with sufficient supporting documentation demonstrating the circumstances which renders
7 it unreasonably difficult to carry out the representation effectively. Any such renewed motion
8 should be set for hearing on the Court’s law and motion calendar, with the understanding that
9 representatives from Grenade and Kronenberg attend the hearing in person to demonstrate to the
10 Court the circumstances that require withdrawal.
Based upon the foregoing, it is HEREBY ORDERED that the ex parte application to

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12 withdraw as counsel is DENIED. However, the Court will extend Grenade’s deadline to file
13 objections to Plaintiff’s bill of costs to no later than October 10, 2014.
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IT IS SO ORDERED.

16 Dated:

September 23, 2014
UNITED STATES MAGISTRATE JUDGE

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