Judge: Peter A. Hernandez, Case: 21PSCV00941, Date: 2024-04-25 Tentative Ruling



Case Number: 21PSCV00941    Hearing Date: April 25, 2024    Dept: K

Counsel for Defendant ARE Design Builders, Inc.’s (i.e., Yonsei Law Firm) Motion to be

Relieved as Counsel is GRANTED, effective upon the filing of a proof of service showing

service of the signed order upon the Client. The court will set an Order to Show Cause Re:

Representation of Corporation for August 1, 2024 at 8:30 a.m.

Background   

Plaintiff Creditor’s Adjustment Bureau, Inc. (“Plaintiff”) alleges as follows:

Plaintiff’s Assignor, State Compensation Insurance Fund (“Assignor “) entered into a written agreement with ARE Design Builders, Inc. aka ARE Design Builders Inc. aka ARE Design Builders Inc. (“Defendant”) wherein Assignor agreed to provide a policy of workers compensation insurance to Defendant, bearing Policy No. 9129281-18 (covering the period of April 1, 2018 through April 25 1, 2019) and Defendant agreed to pay premiums in accordance with the terms and conditions of said policy. Defendant failed to pay for premiums assessed after audit by Assignor.

On November 15 2021, Plaintiff filed a complaint, asserting causes of action against Defendant and Does 1-10 for:

1.                  Breach of Contract

2.                  Open Book Account

3.                  Account Stated

4.                  Reasonable Value

On February 20, 2023, Defendant filed a “Notice of Stay of Proceedings,” advising therein of its Chapter 7 bankruptcy. On February 22, 2024, the court ordered the entire action stayed.

On February 27, 2024, Defendant filed a “Notice of Withdrawal of Notice of Stay.”

A Non-Appearance Case Review Re: Bankruptcy and a Status Conference Re: Bankruptcy are set for August 19, 2024.

Discussion

Yonsei Law Firm (“Firm”) seeks to be relieved as counsel of record for Defendant (“Client”).

The court has discretion to allow an attorney to withdraw, and such a motion should be granted provided that there is no prejudice to the client and it does not disrupt the orderly process of justice. (See Ramirez v. Sturdevant (1994) 21 Cal.App.4th 904, 915; People v. Prince (1968) 268 Cal.App.2d 398.)

California Rules of Court (“CRC”) Rule 3.1362 requires (1) a notice of motion and motion directed to the client (made on the Notice of Motion and Motion to Be Relieved as Counsel—Civil form (MC-051)); (2) a declaration stating in general terms and without compromising the confidentiality of the attorney-client relationship why a motion under Code of Civil Procedure § 284(2) is brought instead of filing a consent under section 284(1) (made on the Declaration in Support of Attorney's Motion to Be Relieved as Counsel—Civil form (MC-052)); (3) service of the notice of motion and motion, the declaration, and the proposed order on the client and on all other parties who have appeared in the case; and (4) a proposed order relieving counsel (prepared on the Order Granting Attorney's Motion to Be Relieved as Counsel—Civil form (MC-053)). The court may delay the effective date of the order relieving counsel until proof of service of a copy of the signed order on the client has been filed with the court.

Attorney John Heath (“Heath”) represents that “[t]here has been a breakdown of attorney-client relationship” and that “[t]he client has fired attorney and dissolved the corporation.” Heath requests that an in camera hearing be conducted should the court desire further information.

Heath states that he has served the Client by mail at the Client’s last known address with copies of the motion papers served with this declaration and that he has confirmed, within the past 30 days, that the address is current, via conversation.

The court determines that the requirements of Rules of Court Rule 3.1362 enumerated above have been sufficiently met.

Accordingly, the motion is granted, effective upon the filing of a proof of service showing service of the signed order upon the Client.

The court will set an Order to Show Cause Re: Representation of Corporation for August 1, 2024 at 8:30 a.m.