2:18-cv-02313
C.D. Cal.Nov 3, 2020Background
- Plaintiff Kerry Clasby filed suit on March 21, 2018 alleging misappropriation of trade secrets, breach of fiduciary duty, and UCL violations related to her produce business.
- Clasby retained Marc Rohatiner (Wolf, Rifkin, Shapiro, Schulman & Rabkin LLP) in October 2017; the attorney-client relationship deteriorated beginning February 2019.
- Rohatiner first moved to withdraw on March 7, 2019; the Court denied that motion without prejudice because trial was imminent at the time.
- On August 2, 2019 the Court stayed the case pending the California Supreme Court’s decision in Dynamex, vacating trial dates; with no trial set, Rohatiner renewed his motion to withdraw (ECF No. 133).
- Rohatiner cites a permanent breakdown in the relationship, Clasby’s distrust and unresponsiveness, and unpaid fees of $157,494.98; defendants informed Rohatiner they would not oppose the withdrawal.
- The Court granted the motion, ordered Rohatiner to serve Clasby with the order and file a G-01 (Proposed Order on Request for Approval of Substitution or Withdrawal) containing Clasby’s contact information within five days, and warned that withdrawal is ineffective until the G-01 is filed and that Clasby must either retain new counsel or proceed pro se and follow court rules.
Issues
| Issue | Clasby (Plaintiff) Argument | Defendants' Argument | Held |
|---|---|---|---|
| Whether counsel has good cause to withdraw | No rebuttal in record | No opposition | Granted: breakdown in relationship and unresponsiveness constitute good cause; unpaid fees alone insufficient but considered |
| Whether withdrawal would prejudice other litigants or delay case | No argument presented | No opposition | Granted: no prejudice or delay because the case is stayed and no trial date exists |
| Whether procedural notice requirements were satisfied | No argument presented | No opposition | Granted: Rohatiner provided advanced written notice to Clasby and notified defendants |
| Conditions and effect of withdrawal (filing G-01; client status) | Clasby may retain counsel or proceed pro se | No opposition | Court ordered service of order, filing of G-01 with contact info within five days; withdrawal ineffective until filed; failure to comply may lead to sanctions |
Key Cases Cited
- LaGrand v. Stewart, 133 F.3d 1253 (9th Cir. 1998) (trial court has discretion to permit counsel withdrawal)
- Brandon v. Blech, 560 F.3d 536 (6th Cir. 2009) (withdrawing counsel during a stay generally poses less risk of prejudice)
- Dynamex Operations West, Inc. v. Superior Court, 4 Cal.5th 903 (Cal. 2018) (California Supreme Court decision whose retroactivity prompted the district court stay)
