MyECheck, Inc. v. Seven Miles Securities et al

Filing 63

ORDER denying without prejudice Mr. Katz's 56 Motion to Withdraw as Attorney signed by District Judge Kimberly J. Mueller on 12/1/16. (Kastilahn, A)

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UNITED STATES DISTRICT COURT

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FOR THE EASTERN DISTRICT OF CALIFORNIA

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MYECHECK, INC.,

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Plaintiff,

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No. 2:14-cv-02889-KJM-AC

v.

ORDER

SEVEN MILES SECURITIES, et al.,

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Defendants.

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This matter is before the court on Brian R. Katz’s motion to withdraw as counsel

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for plaintiff. Mot, ECF No. 56. The motion is unopposed. As explained below, the motion is

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DENIED.

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I.

LEGAL STANDARD

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The local rules of this district require an attorney who would withdraw and leave

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his or her client without representation to obtain leave of the court upon a noticed motion. E.D.

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Cal. L.R. 182(d). Local Rule 182(d) also requires an attorney to provide notice to the client and

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all other parties who have appeared, and an affidavit stating the current or last known address of

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the client. Finally, to comply with Local Rule 182(d), the attorney must conform to the

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requirements of the California Rules of Professional Conduct. Id. California Rule of

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Professional Conduct 3-700 provides several grounds upon which an attorney may seek to
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withdraw, including where “[t]he client knowingly and freely assents to termination of the

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employment,” Cal. R. Prof. Conduct 3-700(C)(5), and where the client’s conduct has “render[ed]

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it unreasonably difficult for the member to carry out the employment effectively,” id.

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3-700(C)(1)(d).

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The decision to grant or deny a motion to withdraw is within the court’s discretion.

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McNally v. Eye Dog Found. for the Blind, Inc., No. 09-01184, 2011 WL 1087117, at *1 (E.D.

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Cal. Mar. 24, 2011) (citation omitted). District courts in this circuit have considered several

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factors when evaluating a motion to withdraw, including the reason for withdrawal, prejudice to

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the client, prejudice to the other litigants, harm to the administration of justice, and possible

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delay. See Deal v. Countrywide Home Loans, No. 09-01643, 2010 WL 3702459, at *2 (N.D. Cal.

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Sept. 15, 2010); CE Res., Inc. v. Magellan Group, LLC, No. 08-02999, 2009 WL 3367489, at *2

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(E.D. Cal. Oct. 14, 2009); Beard v. Shuttermart of Cal., Inc., No. 07-594, 2008 WL 410694, at *2

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(S.D. Cal. Feb. 13, 2008).

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II.

DISCUSSION

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Here, granting the motion to withdraw would leave corporate plaintiff MyEcheck

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without counsel. “It is a longstanding rule that corporations and other incorporated associations

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must appear in court through an attorney.” CE Res., Inc., LLC v. Magellan Group, LLC, 2009

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WL 3367489, at *2 (9th Cir. Oct. 14, 2009) (attorney not allowed to withdraw in representation

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of corporate client). Local Rule 183(a) confirms that a corporation or other entity may only

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appear through an attorney. A grant of Mr. Katz’s motion in this instance would effectively place

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the plaintiff in violation of the rules as it would no longer have counsel to represent it.

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While Mr. Katz avers he has attempted to contact plaintiff in multiple ways on

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multiple occasions, he has not indicated an attempt to advise plaintiff of the need to substitute

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counsel, or an attempt to advise his client of the rules violations it would incur should he be

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allowed to withdraw. “It is the duty of the trial court to see that the client is protected, so far as

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possible, from the consequences of an attorney’s abandonment.” CE Res., Inc., 2009 WL

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3367489, at *2. Accordingly, in order to protect plaintiff’s interests before this tribunal, the court

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declines to grant Mr. Katz’s request at this time.
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III.

CONCLUSION

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For the reasons stated above, Mr. Katz’s motion to withdraw is DENIED without
prejudice.

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This order resolves ECF No. 56.

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IT IS SO ORDERED.

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DATED: December 1, 2016.

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UNITED STATES DISTRICT JUDGE

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