Judge: Stephen P. Pfahler, Case: 20STCV38935, Date: 2024-02-05 Tentative Ruling

Case Number: 20STCV38935    Hearing Date: February 5, 2024    Dept: 68

Dept. 68

Date: 2-5-24

Case # 20STCV38935

Trial Date: Not Set

RELIEVED AS COUNSEL

MOVING ATTORNEY: Crystal Jonelis

CLIENT:  Defendant, Clear Distribution, LLC

RELIEF REQUESTED

Motion to Be Relieved as Counsel of Record

SUMMARY OF ACTION

On February 11, 2020, Plaintiffs 828 Media et al. and defendants David Brown, et al. entered into an agreement for the financing and production of a “film” entitled “Fallout.” The terms required an investment loan of $1,500,000 from 828 Media, with a promised return on $1,800,000 under the terms. The parties also executed a separate “side letter,” whereby the 828 Media and Clear Distribution, LLC agreed to an equal distribution of “any and all sales” following distribution. “throughout the world.”

Following investment of $285,000, the project shut down due to Covid restrictions. New terms were agreed upon whereby 828 Media would only invest $365,000. Meanwhile, production continued with the knowledge of 828 Media and its principal, plaintiff Lundbohm, with a follow-up offer to return the $285,000 loan proceeds, due to new investors joining the project. Plaintiffs maintains the resumption of production without notice, along with other  actions by Defendants, violated the terms of the contract.

On October 9, 2020, Plaintiffs filed a complaint for Breach of Contract, Breach of Good Faith and Fair Dealing, Breach of Fiduciary Duty, Aiding and Abetting, and Promissory Fraud. A 170.6 challenge to the assigned officer led to a transfer of the action to Department 68.

On January 11, 2021, the case was ordered to arbitration. On May 30, 2023, the court lifted the stay on the matter.

RULING: Granted.

Counsel for defendant Clear Distribution, LLC moves to be relieved as counsel of record, due to a breakdown of the attorney client relationship. Counsel maintains the firm in fact withdrew in 2021, but remains identified as counsel of record.

The motion complies with all procedural requirements. The motion is therefore granted.

Counsel was previously relieved as to defendants Clear Entertainment, Inc., Fallout, LLC, and David Brown on August 16, 2023.

Order not effective until service on the client. The corporate entity cannot appear in the action without representation from an admitted attorney. (Merco Constr. Engineers, Inc. v. Municipal Court (1978) 21 Cal.3d 724, 731.)

OSC re: Notice of Related Cases filed on January 4, 2024, set for hearing on February 14, 2024.

Moving attorney to provide notice.