FAT Brands Inc. v. PPMT Capital Advisors, Ltd.
- Jesse Furman
- 1:19-cv-10497-JMF
- U.S. District Court · Southern District of New York
- 1
In FAT Brands v. PPMT, Judge Furman denied without prejudice counsel’s letter-motion to withdraw, allowing a formal motion to be filed.
The order directly affected counsel for the SJ Global Defendants and those defendants, especially SJ Global Investments Worldwide, Inc. and SJ Global Investments Ltd., which were warned about the possible consequences of appearing without counsel.
What happened
In FAT Brands Inc. v. PPMT Capital Advisors, Ltd., counsel for several SJ Global defendants renewed a request to withdraw as their lawyers.
The request was made by letter, but the court said that a withdrawal request must be filed as a formal motion under the court’s rules. The court set deadlines for refiling, service, opposition, and reply.
Judge Jesse M. Furman denied the request without prejudice. Until the court grants a properly filed motion, the current law firm remains counsel of record; the two SJ Global corporate defendants were warned that failing to obtain new counsel could lead to a default judgment.
The detailed version
- FAT Brands Inc. v. PPMT Capital Advisors, Ltd. · No. 1:19-cv-10497-JMF
- Jesse Furman
- Aug. 23, 2023
Background
Counsel for SJ Global Investments Worldwide, Inc., Neil Walsh, Kristina Fields, Peter Samuel, Michael J. Edison, and SJ Global Investments Ltd. (collectively, the “SJ Global Defendants”) filed a letter renewing a request to withdraw as counsel. The opinion does not state the reason counsel sought to withdraw.
Court’s Ruling
The court held that a motion to withdraw could not be filed by letter. It denied the request without prejudice to refiling a formal motion under the Local Rules, including Local Civil Rule 1.4, by August 31, 2023. Defense counsel had to serve the motion and the order on the clients and file proof of service by September 1. Any opposition was due September 14, and any reply was due September 19.
Until the court grants the withdrawal motion, Nelson Mullins Riley & Scarborough, LLP remains counsel of record for the SJ Global Defendants. If those defendants had obtained new counsel, that lawyer was directed to promptly file a notice of appearance. The court also cautioned SJ Global Investments Worldwide, Inc. and SJ Global Investments Ltd. that corporations may appear in federal court only through lawyers. If the court later grants the withdrawal motion and no new lawyer appears for those entities, the court stated that it may enter default judgment against them.
Judge Jesse M. Furman’s order addressed only the procedure for withdrawing as counsel and did not decide the underlying claims in FAT Brands Inc. v. PPMT Capital Advisors, Ltd.
Read the full 1-page opinion on CourtListener, the free public archive maintained by the Free Law Project.