Scala v. Little Feet Childcare Center LLC

Background

Keith Gutstein and Amanda Varrone of Kaufman Dolowich LLP represented Little Feet Childcare Center LLC and Scott Roveto. They asked the court for permission to withdraw as counsel, to file their request under seal and ex parte, and to stay the case for 30 days so the defendants could seek new counsel. The opinion states that the case was still in discovery and that Danielle Scala did not oppose sealing the request.

Sealing the Withdrawal Request

The court explained that filed materials relevant to the judicial process generally carry a strong presumption of public access. That presumption can be overcome when sealing is necessary to protect an important interest and is narrowly limited to what is needed. The court found that confidentiality in the attorney-client relationship justified sealing the withdrawal request. It therefore granted the sealing request and directed the Clerk to keep ECF No. 29 under seal and accessible only ex parte.

Withdrawal of Counsel

Under Southern District of New York Local Civil Rule 1.4, an attorney may withdraw only by court order after showing a satisfactory reason and addressing matters such as any retaining or charging lien and service of the request on the client. The court found that the defendants’ inability to pay their legal fees was a satisfactory reason for withdrawal. It also considered that Scala did not oppose the request and that the case was still in discovery, so withdrawal would not cause enough disruption to require denial.

The letter motion to withdraw was granted, but counsel were directed to submit a letter within seven days explaining whether they asserted a retaining or charging lien and confirming that the withdrawal application had been served on the defendants.

Stay and Next Steps

The court granted the request to stay the case for 30 days to give the defendants an opportunity to retain new counsel. The court reminded the parties that the ultimate discovery deadline was September 6, 2024. Any request to extend that deadline had to be addressed to Judge Kenneth Karas and supported by good cause and the circumstances requiring an extension. The defendants were ordered to provide a status update about retaining new counsel by August 9, 2024.

Disposition

The court granted the motion to seal, granted the motion to withdraw subject to the required seven-day letter, and granted the request for a 30-day stay. The Clerk was directed to terminate the letter motions at ECF Nos. 28 and 29. The opinion did not decide the underlying claims between Scala and the defendants.