Judge: Lon F. Hurwitz, Case: 21-01237081, Date: 2023-05-12 Tentative Ruling

Motion to Be Relieved as Counsel of Record

As an initial matter, moving attorneys have complied with all statutory requirements.

The real issue here is whether defense counsel is authorized to represent and continue its representation of Treadstone Holdings, LLC.

According to counsel, Treadstone Holdings, LLC was used by the individual defendants as a placeholder entity name for a Patent Advisory Application. It appears that the individual defendants never proceeded with any paperwork or research to formerly incorporate. Plaintiff has been made aware of this issue at the outset of Treadstone’s “appearance” in this matter. The individual defendants contend that it does not exist, as Treadstone Holdings, LLC was an “idea that never actually came to fruition. Plaintiff’s counsel has been advised of this repeatedly since the Complaint was filed but has yet to dismiss its Complaint against this Defendant. As such, Defendant has no choice but to prepare and file this Answer” See Treadstone Medical and Treadstone Holding’s Answer to Complaint. (ROA 137). Further, as noted in the Reply, Treadstone Holding’s responses to discovery also reiterate that it does not exist.

However, it turns out that the name Treadstone Holdings LLC is a “real” company that actually exists and is incorporated in Delaware, but is owned or managed by third-parties. The actual owner(s) of Treadstone is completely unrelated to these individual defendants and no one knew about this key detail until January of 2023, when defense counsel sought further documentation from Delaware regarding the incorporation of Treadstone Holdings LLC.

In essence, the individual defendants picked a name for a company, intending do to something with it – as evidenced by placing the name on USPTO documents, but ultimately, they never went forward with forming the company. That is why defendants repeatedly contend that Treadstone Holdings does not exist. It turns out that unbeknownst to anyone, another, completely independent company with the same name was already formed and in existence. This unrelated company has not authorized defense counsel to represent it in this action and it does not appear that defense counsel has ever had any interaction with owners, directors or principles of this company.

While Plaintiff’s arguments appear valid and rightfully appear skeptical of such representations made by defendants, Plaintiff’s arguments do not justify requiring Moving Counsel to continue to represent a company they are not authorized to represent.

All defendants remain a party to this action and Plaintiff will have an opportunity to conduct discovery into these representations.

RULING:

The motion of attorneys Richard A DiCorrado and Eric J. Danowitz to withdraw as attorney of record for Defendant Treadstone Holding LLC is granted pursuant to CCP Section 284 and CRC Section 3.1362.

Counsel have presented sufficient evidence to establish they are not authorized to represent Treadstone Holding, LLC, a Delaware corporation, in this matter.

Moving attorney is ORDERED to give notice to all parties to this action, including Treadstone Holding, LLC incorporated in Delaware. Counsel to file proof of service of the Court’s order as entered. Withdrawal will be effective upon filing of proof of service of the order.