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