General Star Indemnity Company v. First American Title Insurance Company of Napa

Background

General Star Indemnity Company brought the case against First American Title Insurance Company, First American Title Company of Napa, Michael Venuta, Lisa Mini, and In The Vines, LLC. The case concerns the parties’ rights and obligations under an insurance policy issued by General Star in connection with the sale of real property. Fact discovery was scheduled to close on June 18, 2021, and trial was scheduled for March 28, 2022.

Graden Tapley of O’Brien Watters & Davis, LLP moved to withdraw as counsel for Mini and In The Vines. The motion stated that Mini had not met her financial obligations under a legal-services agreement and that the attorney-client relationship had deteriorated so much that effective representation had become unreasonably difficult. O’Brien Watters & Davis notified Mini and In The Vines by email and certified mail that, if withdrawal were allowed, Mini could represent herself or retain new counsel, but In The Vines, as a corporate entity, could appear only through a lawyer. No opposition to the motion was filed.

Legal standard and analysis

The court explained that its local rules require an attorney seeking to withdraw to give reasonable advance written notice to the client and all other parties and to obtain the court’s permission. California professional-conduct rules also require counsel to take steps to avoid reasonably foreseeable harm to the client, including giving sufficient time to obtain replacement counsel and returning client materials and property.

The court found good cause for withdrawal under California Rule of Professional Conduct 1.16(b)(5), which permits withdrawal when a client materially breaches a fee agreement or other obligation after receiving a reasonable warning. The court determined that Mini had failed to meet her financial obligations, that O’Brien Watters & Davis had provided reasonable advance notice, and that the clients had adequate time to obtain substitute counsel.

Order

The court granted O’Brien Watters & Davis’s motion to withdraw as counsel. Because Mini and In The Vines had not consented to the withdrawal and no substitution of counsel had been filed, the court imposed the condition that all papers from the court and the other parties continue to be served on O’Brien Watters & Davis for forwarding until a substitution of counsel is filed. O’Brien Watters & Davis must electronically file proof of service for those documents.

The court stated that In The Vines must retain new counsel and that Mini may choose to represent herself. The court also scheduled a further case-management conference for May 20, 2021, at 10:00 a.m. by Zoom. Lead trial counsel had to attend, while parties without lawyers had to appear personally. The parties were required to file a joint case-management statement by May 13, 2021, including whether mediation or a settlement conference would be beneficial.