1776 Capital Finance, LLC v. Admi, Inc.
- Beth Freeman
- 5:24-cv-02667
- U.S. District Court · Northern District of California
- 4
1776 Capital Finance v. Admi; Judge Freeman conditionally granted counsel’s withdrawal, stayed proceedings 30 days, and required ADMI to obtain new counsel.
Attorney Sarah Shapero and the Shapero Law Firm may withdraw from representing ADMI, Inc. and Allen Moyer once the stated proof is provided. Moyer may proceed without a lawyer, but ADMI must obtain new counsel. The case is stayed until February 2, 2025.
What happened
In 1776 Capital Finance, LLC v. Admi, Inc., Attorney Sarah Shapero asked to withdraw as counsel for ADMI, Inc. and Allen Moyer. The lawsuit concerns an alleged breach of contract, and the plaintiff did not oppose the request.
The court found that ADMI, as a business entity, cannot appear in federal court without a lawyer, although Moyer may represent himself. The case was still at an early stage, with about a year before trial, giving the defendants time to find new counsel.
Judge Beth Labson Freeman granted the withdrawal after counsel provides proof that required case information was sent to the defendants. The court also stayed the case for 30 days, until February 2, 2025, so the defendants could obtain new counsel.
The detailed version
- 1776 Capital Finance, LLC v. Admi, Inc. · No. 5:24-cv-02667
- Beth Freeman
- Jan. 2, 2025
Background
1776 Capital Finance, LLC filed this breach-of-contract action on May 3, 2024. ADMI, Inc. and Allen Moyer had been represented by Attorney Sarah Shapero and the Shapero Law Firm. Shapero moved to withdraw as their counsel. The plaintiff did not file an opposition.
Shapero’s declaration stated that the defendants had breached the retainer agreement, but the court said the motion contained limited facts and argument. The court could not determine whether counsel had given the required reasonable warning before seeking withdrawal. The court also noted that ADMI is a business entity and therefore cannot appear in federal court without counsel. Moyer, by contrast, may proceed without a lawyer.
Ruling
The court considered the limited support for the motion, the lack of opposition, the early stage of the case, and the time remaining before trial. It concluded that allowing withdrawal was unlikely to harm the administration of justice or delay the case.
The court granted Shapero’s Motion to Withdraw as Counsel upon receipt of proof that counsel had sent the defendants a communication containing the case schedule and outstanding deadlines, information about accessing the docket, notice that the February 10, 2025 settlement conference would proceed as scheduled, and an explanation that Moyer may proceed without a lawyer but ADMI must obtain new counsel. Shapero also had to provide the court with the correct addresses for serving Moyer and ADMI.
The court stayed the proceedings for 30 days, with the stay lifting on February 2, 2025. If ADMI had not obtained counsel by then, the court said it would entertain a motion to strike ADMI’s answer. The plaintiff could then decide whether to seek a default judgment.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.