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United States v. Evergreen Recovery Inc.
0:24-cv-02944
D. Minnesota
Aug 23, 2024
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Background

  • Attorney Manda Sertich represented certain defendants (Ms. Grygo and Evergreen entity defendants) in a federal action brought by the United States.
  • Sertich moved to withdraw as counsel, citing concerns about her clients’ ability to pay and a breakdown in communication.
  • The litigation is still at a preliminary stage, with a receiver appointed to wind down the corporate entities.
  • The Court previously set a deadline for any opposition to the withdrawal motion.
  • The government opposed Certich's withdrawal, and Ms. Grygo expressed concern about being unrepresented but did not present severe prejudice.
  • The Court found Sertich’s obligations under her representation agreement had been met and that no party showed severe prejudice that would prevent withdrawal.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether attorney can withdraw without substitute counsel Government argues withdrawal should not be allowed, expressing opposition Sertich asserts good cause exists due to inability to pay and breakdown in communication Withdrawal allowed due to good cause and lack of severe prejudice
Requirements for withdrawal under local rules/Professional Conduct Local rules and conduct must be satisfied; government argues standards not met Sertich claims all requirements met and has given proper notice Court finds Sertich satisfied all procedural and substantive requirements
Prejudice to parties if withdrawal granted Severe prejudice should bar withdrawal Ms. Grygo expresses hardship but not severe prejudice No severe prejudice shown; presumption favoring withdrawal stands
Fulfillment of representation agreement obligations N/A Sertich fulfilled agreement by representing through preliminary injunction Court agrees obligations fulfilled

Key Cases Cited

  • Fleming v. Harris, 39 F.3d 905 (8th Cir. 1994) (district court’s discretion to permit attorney withdrawal)
  • Sanford v. Maid-Rite Corp., 816 F.3d 546 (8th Cir. 2016) (standards governing attorney withdrawal in federal court)
  • Brandon v. Blech, 560 F.3d 536 (6th Cir. 2009) (presumption in favor of withdrawal when rules are met)
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Case Details

Case Name: United States v. Evergreen Recovery Inc.
Court Name: District Court, D. Minnesota
Date Published: Aug 23, 2024
Docket Number: 0:24-cv-02944
Court Abbreviation: D. Minnesota