Tactical Infrastructure S.A. v. Apex Energy Alternative Resources, Inc., et al.

Background

Daniel Singer, counsel of record for the defendants, sought permission to withdraw because the defendants had not paid more than $20,000 in fees. Singer represented both Apex Energy Alternative Resources, Inc. and Robert Willoughby, who was named as a defendant individually and in connection with the corporate entity.

The court had initially denied Singer’s withdrawal request until the plaintiff produced a privilege log and any related attorney-fee requests were resolved. The plaintiff later produced the privilege log, and Singer certified that he would not seek fees related to the motion to compel. Singer then renewed his withdrawal request and asked for an interim stay so the defendants could obtain new counsel. Willoughby opposed withdrawal, acknowledged that fees were owed, and asked for an installment payment plan.

Court’s Analysis

Under Local Civil Rule 1.4, an attorney who has appeared for a party may withdraw only with the court’s permission and upon a showing of satisfactory reasons. The court considers both the reasons for withdrawal and the effect on the timing of the case.

The court concluded that good cause supported withdrawal. Willoughby did not dispute that he had failed to pay Singer, trial was not imminent, and Local Civil Rule 1.4 did not require Singer to accept a payment plan. The court also found that forcing Singer, a solo practitioner, to continue working without payment would create a significant financial burden. Although the court recognized potential prejudice to the corporate defendant, which cannot represent itself without a lawyer, it determined that the parties’ broken promise to pay likely made the attorney-client relationship irreconcilable.

Rulings

The court granted Singer’s application to withdraw as counsel of record for the defendants. It denied without prejudice the defendants’ application for an interim stay, meaning the request may be renewed. The defendants may renew that request at the December 17 status conference if they show good-faith efforts to retain new counsel. The court denied all other relief requested in the identified filings, except for the separately addressed interim-stay request.

The court kept the December 17 status conference scheduled. Willoughby must attend in person in his individual capacity. Because the corporate defendant cannot represent itself, failure to attend could lead to a recommendation to Judge John Koeltl that default judgment be entered against one or both defendants. Singer was ordered to serve the order on Willoughby and file proof of service, and the clerk was directed to terminate Singer as counsel of record.