City of Joliet v. Mid-City National Bank

998 F. Supp. 2d 689, 2014 U.S. Dist. LEXIS 10353, 2014 WL 702179
CourtDistrict Court, N.D. Illinois
DecidedJanuary 24, 2014
DocketNo. 05 CV 6746
StatusPublished

This text of 998 F. Supp. 2d 689 (City of Joliet v. Mid-City National Bank) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Joliet v. Mid-City National Bank, 998 F. Supp. 2d 689, 2014 U.S. Dist. LEXIS 10353, 2014 WL 702179 (N.D. Ill. 2014).

Opinion

ORDER

CHARLES RONALD NORGLE, District Judge.

Motion to Withdraw [857] is granted.

STATEMENT

Before the Court is Dean J. Polales, John T. Ruskusky, F. Thomas Hecht, Susan G. Feibus, Floyd D. Perkins, Claudette P. Miller, J. Timothy Ramsey, Kristopher [691]*691J. Stark, Seth A. Horvath, Kelly M. Keefe, and all attorneys associated with Ungaretti & Harris LLP’s (collectively, “U & H” or the “U & H attorneys”) motion to withdraw from the representation of Defendants New West, L.P., New Bluff, L.P., et al. (“New West/New Bluff’ or the “New West/New Bluff Defendants”).1 For the following reasons, the motion is granted.

The instant eminent domain and Fair Housing Act, 42 U.S.C. § 3601 et seq., action began in 2005. Extensive pretrial litigation ensued over the following seven years, including appeals to the Seventh Circuit and a petition for writ of certiorari before the United States Supreme Court. The case proceeded to bench trial on September 27, 2012 — a trial which has continued for over a year and has resulted, thus far, in an excess of 15,000 pages of transcripts.

On November 12, 2013, Defendant United States Department of Housing and Urban Development (“HUD”) was dismissed following a settlement agreement between it and Plaintiff City of Joliet (“Joliet”). The remaining parties completed the presentation of evidence in the trial on December 20, 2013. On January 10, 2014, Joliet entered into a settlement agreement with Defendants Teresa Davis, Elvis Foster, Arnetris Renee Griffin, and Alfreda Eu-banks, resulting in their dismissal. The New West/New Bluff Defendants are now the only defendants in this case.

At present, the trial is proceeding to the parties’ submission of their proposed findings of fact and conclusions of law and closing arguments. Initially, the proposed findings of fact and conclusions of law were due on or before February 28, 2014, with replies due on or before March 14, 2014. In light of the instant motion, however, the Court has extended those dates to March 14, 2014 and March 28, 2014, respectively.

The U & H attorneys have represented New West/New Bluff in this matter from 2005 to date.2 On December 31, 2013, U & H filed the instant motion to withdraw, stating that a significant amount of attorney’s fees remains unpaid, including fees for all of U & H’s trial work and for various pretrial work. U & H alleges, and the New West/New Bluff Defendants do not contest, that the amount of unpaid legal fees exceeds $5 million.

It is well established that “[l]itigants have no right to free legal aid in civil suits.” Fid. Nat’l Title Ins. Co. of N.Y. v. Intercounty Nat’l Title Ins. Co., 310 F.3d 537, 540 (7th Cir.2002); see also A Sealed Case, 890 F.2d 15, 18 (7th Cir.1989) (“Parties in civil cases have no equivalent right to counsel at the expense of another— whether of the public or of an unwilling [692]*692lawyer.”). The American Bar Association’s Model Rules of Professional Conduct, which have been adopted by this Court through Local Rule 83.50, provide:

(b) Except as stated in paragraph (c), a lawyer may withdraw from representing a client if:
(5) the client fails substantially to fulfill an obligation to the lawyer regarding the lawyer’s services and has been given reasonable warning that the lawyer will withdraw unless the obligation is fulfilled;
(6) the representation will result in an unreasonable financial burden on the lawyer or has been rendered unreasonably difficult by the client; or
(7) other good cause for withdrawal exists.

ABA Model Rule 1.16(b)(5)-(7).

Here, U & H argues that all three of the above sections of Model Rule 1.16(b) apply. First, U & H argues that its representation of New West/New Bluff has resulted, and will continue to “result in an unreasonable financial burden” on U & H, because New West/New Bluff has accrued over $5 million in unpaid attorney’s fees— an amount that continues to increase as this litigation moves forward. ABA Model Rule 1.16(b)(6). In response, New West/ New Bluff suggests that despite the amount of unpaid fees, it will not be overly burdensome for U & H to finish the trial because the remaining tasks “necessarily flow from work Ungaretti has already done in this trial, and Ungaretti has been uniquely prepared for these tasks by in fact trying this case to this point.” Defs.’ Resp. to Mot. to Withdraw ¶ 13. New West/New Bluff also notes that although it cannot, and will not, pay the outstanding $5 million in attorney’s fees to U & H, it has already paid the U & H attorneys $7,225,064.75 in legal fees before the commencement of trial in 2012. The fact that a substantial amount of attorney’s fees has already been paid, however, does not obviate New West/New Bluffs obligation to pay attorney’s fees that have accrued and continue to accrue since the date of the last payment. In any event, the issue is whether $5 million in unpaid bills constitutes an “unreasonable financial burden” on U & H which would make withdrawal permissible. ABA Model Rule 1.16(b)(6). In Fidelity National Title Insurance Company of New York, the court stated that “[m]ore than $470,000 in unpaid bills, with the meter still running and poor prospects of future payment, is substantial by any reckoning” and that the district court’s denial of the motion to withdraw was, therefore, an abuse of discretion. 310 F.3d at 540. Undoubtedly, even ten years later, $5 million in unpaid attorney’s fees is a substantial amount which would cause U & H an unreasonable financial burden. Accordingly, Model Rule 1.16(b)(6) would permit withdrawal here.

Next, the U & H attorneys argue that they should be granted leave to withdraw pursuant to Model Rule 1.16(b)(5) because New West/New Bluff has failed to pay attorney’s fees in accordance with the representation agreements and U & H has given New West/New Bluff reasonable notice that it would withdraw if payment is not made. The New West/New Bluff Defendants argue that they were given no notice of U & H’s “desire to withdraw prior to concluding the takings phase.” Defs.’ Resp. to Mot. to Withdraw ¶ 3 (emphasis in original).

To the contrary, however, as U & H argues, New West/New Bluff has been on notice of U & H’s intent to withdraw since at least September 24, 2013, when Defendant Ronald Gidwitz sent U & H a letter declining to pay “accrued or anticipated attorney fees for the litigation.” Reply in Supp. of Mot. to Withdraw Ex. A. Approxi[693]*693mately one month later, on November 20, 2013, U & H presented the New West/ New Bluff Defendants with a proposed settlement of the delinquent fees, wherein U & H informed its clients that if payment is not made, U & H would seek to withdraw. On December 4, 2013, New West/ New Bluff rejected the offer and refused to pay U & H’s fees.

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998 F. Supp. 2d 689, 2014 U.S. Dist. LEXIS 10353, 2014 WL 702179, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-joliet-v-mid-city-national-bank-ilnd-2014.