Building Service 32BJ Pension Fund v. Whitehouse Estates, Inc.
- Andrew Carter
- 1:23-cv-07286
- U.S. District Court · Southern District of New York
- 3
In Building Service 32BJ Pension Fund v. Whitehouse Estates, Judge Parker granted counsel’s withdrawal motion and Plaintiff’s motion to amend the complaint.
Whitehouse Estates, Inc.’s former counsel was permitted to withdraw, leaving the company to obtain new counsel. The plaintiff was permitted to amend its complaint, and newly added defendants will receive response deadlines after service.
What happened
Building Service 32BJ Pension Fund v. Whitehouse Estates, Inc. involved defense counsel’s request to withdraw after Whitehouse Estates, Inc. allegedly failed to pay $14,519 in legal bills. The plaintiff opposed withdrawal and argued that counsel should remain through discovery.
The court found that nonpayment was a sufficient reason for counsel to withdraw. Although withdrawal could affect the case’s timing, the court said discovery was still underway and the case was not close to trial. The court also found good cause for the plaintiff to amend its complaint and add defendants.
Judge Katharine H. Parker granted the motion to withdraw and granted the plaintiff’s motion to amend. The plaintiff must file the amended complaint by March 25, 2024; Whitehouse Estates, Inc. received 30 days to find new counsel and an additional 21 days to respond.
The detailed version
- Building Service 32BJ Pension Fund v. Whitehouse Estates, Inc. · No. 1:23-cv-07286
- Andrew Carter
- Mar. 18, 2024
Background
Counsel for Whitehouse Estates, Inc. moved to withdraw from representing the company. The supporting declaration stated that Whitehouse Estates had not paid any of counsel’s invoices since the action began and owed $14,519. The plaintiff opposed withdrawal, arguing that counsel should be required to remain until discovery was complete.
The plaintiff also had a pending motion for leave to amend the complaint and add additional defendants. The case was still in discovery.
Court’s Analysis
Local Civil Rule 1.4 requires an attorney who has appeared in a case to obtain the court’s permission before withdrawing. The court explained that withdrawal is discretionary and that it must consider the reasons for withdrawal and the effect on the proceeding’s timing.
The court held that a client’s refusal or inability to pay legal bills is a sufficient reason to allow counsel to withdraw. It also found that withdrawal would not disrupt the case enough to justify denying the motion because discovery had not closed and the case was not close to being ready for trial.
Because Whitehouse Estates would be without counsel, it could not object to the plaintiff’s amendment motion. The court found that the plaintiff had shown good cause to amend the complaint.
Rulings and Case Management
The court granted defense counsel’s motion to withdraw. It also granted the plaintiff’s motion for leave to amend the complaint at ECF No. 23. The plaintiff was ordered to file the amended complaint by Monday, March 25, 2024.
The court did not enter a formal stay. Newly added defendants will have 21 days after service of the amended complaint to respond. Whitehouse Estates, Inc. was given 30 days from the order’s date to locate new counsel and an additional 21 days to respond to the amended complaint.
The clerk was directed to terminate the two granted motions and remove Arthur J. Robb, Ian-Paul Apostole Poulos, and Melissa Annabella Romain as counsel of record for Whitehouse Estates, Inc. The order also directed Mr. Robb to mail a copy of the order to Whitehouse Estates, Inc.
Judge Katharine H. Parker signed the order as a United States Magistrate Judge.
Read the full 3-page opinion on CourtListener, the free public archive maintained by the Free Law Project.