Operating Engineers Health and Welfare Trust Fund v. Nottnagel Industries
Operating Engineers Health and Welfare Trust Fund, et al. v. Nottnagel Industries, Inc., et al.
- Thomas Hixson
- 3:25-cv-06632
- U.S. District Court · Northern District of California
- 4
In Operating Engineers v. Nottnagel Industries, Judge Hixson conditionally granted counsel’s withdrawal motion and continued the case-management conference.
James Bourbeau and Nottnagel Industries, Inc. are directly affected: Bourbeau may withdraw but must continue serving NII until substitute counsel appears, and NII risks default judgment if it does not retain counsel. The case-management conference for all parties was continued.
What happened
Operating Engineers Health and Welfare Trust Fund and other plaintiffs sued Nottnagel Industries, Inc., Matthew Nottnagel, and N6 LLC. James Bourbeau asked to withdraw as counsel for Nottnagel Industries, which had been suspended for failing to meet tax obligations and would not be revived.
The court found that Nottnagel Industries could not defend itself while suspended and that its refusal to revive the corporation made continued representation unreasonably difficult. The court also found that Bourbeau had properly notified the company and had met the applicable requirements for withdrawal.
Judge Thomas S. Hixson granted the motion, but required Bourbeau to remain counsel of record and serve filed documents on Nottnagel Industries until substitute counsel appears. The court warned that the company’s failure to retain counsel could result in default judgment and continued the case-management conference to February 12, 2026.
The detailed version
- Operating Engineers Health and Welfare Trust Fund v. Nottnagel Industries · No. 3:25-cv-06632
- Thomas Hixson
- Dec. 10, 2025
Background
James Bourbeau moved to withdraw as counsel for Nottnagel Industries, Inc. (NII), under Civil Local Rule 11-5. Plaintiffs filed a statement of non-opposition, and NII did not respond. The court vacated the scheduled hearing and decided the motion without oral argument.
Bourbeau was counsel of record for NII, Matthew Nottnagel, and N6 LLC. The opinion states that NII was a California corporation suspended by the California Franchise Tax Board effective April 2, 2024, for failing to meet tax obligations. Bourbeau stated that NII informed him that it did not intend to revive the corporation. The court had separately granted Matthew Nottnagel and N6 LLC’s motion to substitute Steven Benjamin as their counsel.
Court’s analysis
Civil Local Rule 11-5 requires court approval before counsel withdraws from a case and requires advance written notice to the client and other parties who have appeared. The court explained that it must consider the reason for withdrawal, possible prejudice to the litigants, and possible delay to the case. Counsel must also follow California professional-conduct rules and take steps to avoid reasonably foreseeable prejudice to the client.
The court found good cause for withdrawal. It determined that NII’s suspended status meant it lacked the capacity to defend itself and that NII’s stated refusal to revive the corporation made it impossible for Bourbeau to represent NII effectively. The court also found that Bourbeau had given NII reasonable advance notice and complied with the applicable requirements.
Ruling and conditions
The court GRANTED Bourbeau’s motion to withdraw on NII’s behalf. Because a corporation may appear in federal court only through licensed counsel, and NII had not appeared through substitute counsel, the court required Bourbeau to remain counsel of record under Civil Local Rule 11-5(b). He must serve all filed documents on NII until substitute counsel appears and must electronically file proof of service within three business days after filing each document.
The court advised NII that failing to retain substitute counsel could result in entry of default judgment. The court also CONTINUED the case-management conference to February 12, 2026, at 10:00 a.m., by Zoom, and required the parties to file an updated joint case-management statement by February 5, 2026.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.