Amazon.com, Inc. v. Personal Web Technologies, LLC

Background

The court addressed a motion by Stubbs Alderton & Markiles, LLP and Theodore Maceiko of Maceiko IP, collectively referred to as SAM, to withdraw as counsel for PersonalWeb Technologies, LLC. The motion concerned representation in post-judgment collection proceedings in this litigation. The opinion also identifies related consolidated litigation and another case number, 5:18-cv-05619-BLF.

PersonalWeb did not want SAM to represent it in post-judgment collection proceedings. PersonalWeb had discharged SAM for those proceedings and stated that it had retained other counsel. SAM continued to represent PersonalWeb only in appeals pending before the Federal Circuit. PersonalWeb had notified SAM on April 27, 2021, that SAM was not authorized to take post-judgment action.

Legal standard

Under the Northern District of California’s local rules, counsel may withdraw only after the court grants permission and after providing advance written notice to the client and other parties who have appeared. The court considered the reason for withdrawal, possible prejudice to the parties, and whether withdrawal would delay resolution of the case. The court also applied California professional-conduct rules, which permit withdrawal when the client knowingly and freely agrees and require reasonable steps to avoid foreseeable harm to the client.

Court’s analysis

The court found that PersonalWeb had received adequate notice because it had terminated SAM for post-judgment matters. The court also found that SAM had taken reasonable steps to avoid prejudice to PersonalWeb. In particular, no post-judgment motions were pending before the court for which SAM was authorized to represent PersonalWeb.

The court nevertheless found that withdrawal at that point would unfairly prejudice Amazon.com, Inc., Amazon Web Services, Inc., and Twitch Interactive, Inc. The court stated that PersonalWeb appeared to be obstructing those parties’ legitimate interest in collecting their judgment. Although PersonalWeb had apparently retained replacement counsel, that lawyer had not formally appeared despite a post-judgment discovery order and related pending motions. The court concluded that PersonalWeb could choose its counsel but could not use action or inaction to interfere with the judicial process.

Disposition

The court conditionally granted SAM’s motion to withdraw. SAM could withdraw upon Ronald Richards’s notice of appearance as PersonalWeb’s counsel for post-judgment matters. The opinion does not state that the court decided the underlying patent dispute in this order.