Federal Trade Commission v. Consumer Defense LLC et al

Filing 147

ORDER Granting 142 Motion to Withdraw as Attorney. The Clerk of the Court shall serve the defendants with a copy of this order at their last known addresses. See Order for deadlines. Signed by Magistrate Judge Peggy A. Leen on 11/20/2018. (Copies have been distributed pursuant to the NEF - MR)

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UNITED STATES DISTRICT COURT

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DISTRICT OF NEVADA

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***

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FEDERAL TRADE COMMISSION,

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Case No. 2:18-cv-0030-JCM-PAL
Plaintiff,

v.

ORDER
(Emg Mot WD Atty – ECF No. 142)

CONSUMER DEFENSE LLC, et al.,
Defendants.

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This matter is before the court on Christensen & Jenson, P.C.’s Motion to Withdraw as

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Counsel of Record (ECF No. 142) for individual defendants Jonathan P. Hanley and Sandra X.

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Hanley, and corporate defendants Consumer Defense, LLC, Preferred Law, PLLC, American

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Home Loan Counselors, Consumer Defense Group, LLC, American Home Loans, LLC, AM

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Property Management, LLC, FMG Partners, LLC, Brown Legal, Inc., and Zinly, LLC. The court

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has reviewed the motion, plaintiff’s Non-Opposition (ECF No. 143), and attorney Gregory Miles’

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Joinder (ECF No. 144) as local counsel.

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The motion was filed an emergency motion because the parties “need to know immediately

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whether counsel for defendants will be permitted to withdraw” as any delay will reduce the time

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for the parties to meet concerning existing court-imposed deadlines. Additionally, counsel

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represents that the attorney-client relationship has irreparably broken down and continued

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representation would impose an unreasonable financial burden. Counsel has not been paid for

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substantial work performed. Defense counsel has had great difficulty in communicating with his

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client, the client has failed to cooperate with him, and has failed to pay costs and fees. John

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Lauritzen and Karra Porter of Christensen & Jensen, and local counsel Gregory A. Miles therefore

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seek leave to withdraw as counsel of record.

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A Discovery Plan and Scheduling Order (ECF No. 121) was entered August 2, 2018, which
stablished a March 15, 2019 discovery cutoff.
The court will grant the motion to withdraw but require the corporate defendants to retain

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substitute counsel. A corporation cannot appear except through counsel.

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California Men’s Colony, 506 U.S. 194, 201–02 (1993); Reading Int'l, Inc. v. Malulani Grp., Ltd.,

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814 F.3d 1046, 1053 (9th Cir. 2016). The Ninth Circuit has held that default judgment is an

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appropriate sanction for a corporation’s failure to retain counsel for the duration of the litigation.

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United States v. High Country Broadcasting, 3 F.3d 1244, 1245 (9th Cir. 1993).

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See Rowland v.

Having reviewed and considered the matter, and for good cause shown,

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IT IS ORDERED:

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A. Miles’ Motion to Withdraw (ECF No. 142) is GRANTED.

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John Lauritzen and Karra Porter of Christensen & Jenson and local counsel Gregory

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Defendants Jonathan P. Hanley and Sandra X. Hanley shall have until December

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20, 2018 in which to retain substitute counsel who shall make an appearance in

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accordance with the requirements of the Local Rules of Practice, or shall file a

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notice with the court that he will be appearing in this matter pro se., that is,

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representing themselves.

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3.

Defendant Jonathan P. Hanley and Sandra X. Hanley’s failure to timely comply

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with this order by either obtaining substitute counsel or filing a notice that they will

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be appearing in this matter pro se may result in the imposition of sanctions, which

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may include a recommendation to the District Judge of default judgment.

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3.

As defendants Consumer Defense, LLC, Preferred Law, PLLC, American Home

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Loan Counselors, Consumer Defense Group, LLC, American Home Loans, LLC,

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AM Property Management, LLC, FMG Partners, LLC, Brown Legal, Inc., and

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Zinly, LLC are corporations and must have counsel, they shall have until

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December 20, 2018 in which to retain substitute counsel who shall make an

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appearance in accordance with the requirements of the Local Rules of Practice.

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Defendants Consumer Defense, LLC, Preferred Law, PLLC, American Home Loan

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Counselors, Consumer Defense Group, LLC, American Home Loans, LLC, AM

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Property Management, LLC, FMG Partners, LLC, Brown Legal, Inc., and Zinly,

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LLC’s failure to timely comply with this order by obtaining substitute counsel may

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result in the imposition of sanctions, which may include a recommendation to the

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District Judge of default judgment.

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5.

The Clerk of the Court shall serve the defendants with a copy of this order at their

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last known addresses:

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Consumer Defense, LLC
c/o 655 West Broadway, Ste 1600
San Diego, CA 92101

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Preferred Law, PLLC
c/o 655 West Broadway, Ste 1600
San Diego, CA 92101
American Home Loan Counselors
c/o 655 West Broadway, Ste 1600
San Diego, CA 92101
Consumer Defense Group, LLC
c/o 655 West Broadway, Ste 1600
San Diego, CA 92101
American Home Loans, LLC
c/o 655 West Broadway, Ste 1600
San Diego, CA 92101
AM Property Management, LLC
c/o 655 West Broadway, Ste 1600
San Diego, CA 92101
FMG Partners
c/o 655 West Broadway, Ste 1600
San Diego, CA 92101
Brown Legal, Inc.
c/o 655 West Broadway, Ste 1600
San Diego, CA 92101
Zinly, LLC
c/o 655 West Broadway, Ste 1600
San Diego, CA 92101
Jonathan P. Hanley
9144 Maison Drive
Sandy, UT 84093
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Sandra X. Hanley
9144 Maison Drive
Sandy, UT 84093
DATED this 20th day of November 2018.

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PEGGY A. LEEN
UNITED STATES MAGISTRATE JUDGE

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