Naghavi v. Belter Health Measurement and Analysis Technology Co., Ltd.
- Proceeding
- district
- Area
- civil
- Panel
- Marilyn L. Huff (author)
Analysis
Paul Hastings LLP moved to withdraw as counsel for Defendant Belter Health Measurement and Analysis Technology Co., Ltd., citing non-payment and lack of communication. The court denied the motion to withdraw but ordered the Defendant to obtain substitute counsel within 30 days, warning of default judgment and sanctions for non-compliance.
| What the court decided | The model |
|---|---|
Motion to withdraw as counsel denied; Defendant ordered to obtain substitute counsel within 30 days.“Defendant is directed to obtain substitute counsel within 30 days of the issuance of this order.” | agree with court The court correctly applied the principle that a corporation must be represented by counsel and that an attorney cannot simply abandon a client without ensuring the client has alternative representation. By denying the withdrawal but ordering the client to retain new counsel, the court protected the integrity of the proceedings while addressing the attorney-client breakdown. The warning of default judgment is consistent with Federal Rule of Civil Procedure 55(a). |
The order itself: sound — The order is procedurally sound. It correctly identifies the legal requirement for corporate representation, addresses the specific facts of the attorney's motion (non-payment, lack of communication), and provides a clear directive with consequences for non-compliance. It relies on appropriate Ninth Circuit and local rule authority. The reasoning is concise but sufficient for a procedural order of this nature.
Opinion
1 2 3 4 5 6 7 8 9 UNITED STATES DISTRICT COURT 10 SOUTHERN DISTRICT OF CALIFORNIA 11 12 DR. MORTEZA NAGHAVI, M.D., an Case No.: 3:20-cv-01723-H-KSC individual; MEDITEX CAPITAL, LLC, a 13 Delaware limited liability company; and ORDER DIRECTING DEFENDANT 14 AMERICAN HEART BELTER HEALTH MEASUREMENT TECHNOLOGIES, LLC, a Delaware AND ANALYSIS TECHNOLOGY 15 limited liability company, CO., LTD. TO OBTAIN 16 SUBSTITUTE COUNSEL Plaintiffs, 17 v. 18 BELTER HEALTH MEASUREMENT 19 AND ANALYSIS TECHNOLOGY CO., LTD., a China corporation; ZHUHAI 20 HENGQIN XUANYUAN NO. 8 21 EQUITY INVESTMENT PARTNERSHIP (LIMITED 22 PARTNERSHIP), a China limited 23 partnership; and DOES 1 through 20, inclusive, 24 25 Defendants. 26 On September 8, 2021, the law firm of Paul Hastings LLP and its current and former 27 attorneys, Peter M. Stone, Danli C. Guo, and Kevin J. White (collectively, “Paul 28 Hastings”), filed a motion to withdraw as counsel of record for Defendant Belter Health 1 || Measurement and Analysis Technology Co., Ltd. (‘Defendant’). (Doc. No. 38.) Paul 2 || Hastings seeks withdrawal on the basis that Defendant allegedly (1) failed to pay its existing 3 || legal fees, (11) is no longer willing to pay for the future fees expected in this case, (111) has 4 consented to the withdrawal, and (iv) has ceased communications with counsel. (Doc. No. 5 at 2; Doc. No. 38-2, Decl. of Peter M. Stone Jf 3, 5, 7-9.) 6 Since Defendant is a corporation, it must be represented by counsel in order to appear 7 this action. “It is well established that corporations may appear in federal court only 8 ||through licensed counsel.” Foley v. Allied Interstate, Inc., 312 F. Supp. 2d 1279, 1283 9 ||(C.D. Cal. 2004) (citing In re Highley, 459 F.2d 554, 555 (9th Cir. 1972)); see also Civ. 10 83.3G) ([C]orporations, partnerships and other legal entities, may appear in court 11 through an attorney’). Paul Hastings states that it informed the Defendant of its 12 || obligation to retain counsel to proceed in this litigation. (Doc. No. 38-1 at 3.) However, 13 || Defendant has not moved to substitute counsel or otherwise indicated that it has retained 14 counsel to replace Paul Hastings. 15 Paul Hastings must use their best efforts to encourage cooperation from their clients. 16 || Defendant is directed to obtain substitute counsel within 30 days of the issuance of this 17 ||order. Defendant is advised that failure to retain counsel risks default judgment. See U.S. 18 High Country Broadcasting Co., Inc., 3 F.3d 1244, 1245 (9th Cir. 1993); Fed. R. Civ. 19 || Pro. 55(a). In light of this order, the Court vacates the hearing scheduled for November 1, 20 at 10:30 AM concerning the motion to withdraw. If Belter Health Measurement and 21 Analysis Technology Co., Ltd. fails to comply with this order, it may face sanctions for 22 || failing to comply with a court order. Sanctions may include monetary sanctions or default 23 ||in this case. The Court orders Belter Health Measurement and Analysis Technology Co., 24 || Ltd. to obtain new counsel to protect its interests in this litigation. 25 IT IS SO ORDERED. 26 || DATED: October 27, 2021 - —Malgn Lthep fe MARILYN ELE. HUFF, District Judge 28 UNITED STATES DISTRICT COURT