Field v. Exponential Wealth Inc.
- John Koeltl
- 1:21-cv-01990
- U.S. District Court · Southern District of New York
- 2
In Field v. Exponential Wealth, Judge Cave granted defense counsel’s motion to withdraw and set deadlines for discovery and corporate replacement counsel.
Defendants Exponential Wealth Inc., Ryan Murnane, Ryan Michaels, Krystalynne Murnane, and Nolan Bennett; Crawford Bringslid Vander Neut LLP; and the parties’ discovery schedule.
What happened
In Field v. Exponential Wealth Inc., Crawford Bringslid Vander Neut LLP asked to withdraw as counsel for the defendants. The defendants did not respond to the court’s order asking why the firm should remain their counsel.
The court granted the motion. It terminated Crawford as defense counsel, required the defendants to produce bank statements, and required Exponential Wealth Inc. to obtain new counsel because corporations cannot represent themselves. The court also extended discovery deadlines and scheduled a telephone conference.
Judge Sarah L. Cave issued the order on March 14, 2022. The order warned that Exponential Wealth Inc. could face a certificate of default and default judgment if it did not retain counsel, but it did not enter those outcomes in this order.
The detailed version
- Field v. Exponential Wealth Inc. · No. 1:21-cv-01990
- John Koeltl
- Mar. 14, 2022
Background
Attorney Michael J. DeSantis submitted a proposed order to show cause, declaration, and exhibits supporting Crawford Bringslid Vander Neut LLP’s motion under Local Civil Rule 1.4 to be relieved as counsel for Defendants Exponential Wealth Inc., Ryan Murnane, Ryan Michaels, Krystalynne Murnane, and Nolan Bennett. The motion was filed on January 10, 2022.
On January 14, 2022, Judge John G. Koeltl ordered the defendants to explain by January 28 why Crawford should not be relieved as counsel. The deadline was later extended to February 11. The defendants did not respond to that order or otherwise oppose the motion.
Ruling and Orders
The court granted Crawford’s motion. The Clerk was directed to terminate Crawford, including attorneys Michael DeSantis and Allyn J. Crawford, as counsel for the defendants.
The order also required:
- By March 21, 2022, the defendants had to produce the bank statements identified in an earlier court order. - By March 28, 2022, new counsel for Exponential Wealth Inc. had to file a notice of appearance. The court explained that a corporation cannot proceed without a lawyer and warned that failure to retain counsel could lead to a certificate of default and a default judgment. - The deadline to complete all discovery was extended to May 15, 2022. - By May 22, 2022, the parties had to file a joint letter certifying that discovery was complete. - A telephone conference was scheduled for April 27, 2022, at 2:00 p.m.
The order required Mr. DeSantis to serve the order on the defendants by email and certified mail and to file proof of service by March 15, 2022. This was an order about counsel, discovery, and case management; it did not decide the underlying claims.
Read the full 2-page opinion on CourtListener, the free public archive maintained by the Free Law Project.