Nevada Fleet LLC v. Fedex Corp.

CourtDistrict Court, E.D. California
DecidedMay 21, 2025
Docket2:17-cv-01732
StatusUnknown

This text of Nevada Fleet LLC v. Fedex Corp. (Nevada Fleet LLC v. Fedex Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nevada Fleet LLC v. Fedex Corp., (E.D. Cal. 2025).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 NEVADA FLEET LLC, No. 2:17-cv-01732-DAD-CSK 12 Plaintiff, 13 v. ORDER GRANTING MOTION TO WITHDRAW AS COUNSEL OF RECORD 14 FEDEX CORPORATION, et al., FOR PLAINTIFF 15 Defendants. (Doc. No. 195) 16

17 18 This matter is before the court on the motion to withdraw as plaintiff Nevada Fleet LLC’s 19 counsel of record filed by attorneys René Tovar and David J. Cohen on April 7, 2025. (Doc. 20 No. 195.) For the reasons explained below, the court will grant counsels’ motion to withdraw and 21 set a deadline for plaintiff to either retain new counsel in order to proceed with this action or file a 22 notice of dismissal of this action. 23 BACKGROUND 24 Plaintiff filed the complaint initiating this action on August 18, 2017. (Doc. No. 1.) On 25 May 4, 2020, attorney Tanya Kim Harris was terminated as counsel of record for plaintiff and 26 replaced by attorney Mary Kathleen Gallagher. (Doc. No. 60.) On August 13, 2020, the 27 previously assigned district judge issued an order substituting attorney Brandon Claus Fernald as 28 counsel of record for plaintiff in place of attorney Gallagher. (Doc. No. 69.) On May 14, 2024, 1 attorney Fernald filed a motion to withdraw as counsel of record for plaintiff; the court granted 2 that motion on July 9, 2024. (Doc. Nos. 175, 181.) Notably, in almost identical circumstances to 3 those now presented here, plaintiff, through its principal Thomas Layton, emailed defendant’s 4 counsel directly and informed opposing counsel that it had terminated attorney Fernald without 5 notifying Fernald directly of the termination. (Doc. No. 175 at 8, 10–11.) Defendant’s counsel 6 then forwarded that email to attorney Fernald. (Id. at 10–11.) Plaintiff’s current attorneys, Tovar 7 and Cohen, were added as plaintiff’s counsel of record on July 18, 2024. (Doc. No. 182.) 8 In his declaration filed in support of the pending motion to withdraw, attorney Tovar 9 states the following. On March 19, 2025,1 plaintiff insisted that attorneys Tovar and Cohen 10 engage in conduct that was contrary to their judgment and best advice and that could not be 11 supported by a good faith argument. (Doc. No. 195 at ¶ 4.) Attorneys Tovar and Cohen refused 12 to engage in plaintiff’s proposed course of conduct on the grounds that doing so would not be in 13 plaintiff’s best interest and because the proposed conduct would be, in their view, unethical. (Id.) 14 On March 21, 2025, defendants’ counsel informed attorney Tovar that plaintiff’s principal, 15 Thomas Layton, had advised defendants’ counsel that he had terminated attorneys Tovar and 16 Cohen as his counsel in this action. (Id. at ¶ 5.) Specifically, Layton stated to defendants’ 17 counsel in an email that “I once again find myself between legal representations. I will be 18 substituting out Tovar & Cohen shortly.” (Id.; see also id. at 11.) Subsequently, plaintiff stripped 19 attorneys Tovar and Cohen “of the authority to set dates, reach agreements with opposing counsel 20 in connection with procedural matters, and otherwise stripped Counsel of [their] decision making 21 authority.” (Id. at ¶ 7.) Plaintiff also refuses to communicate with attorneys Tovar and Cohen 22 regarding substantive matters involving this action. (Id.) Plaintiff Nevada Fleet LLC has not 23 proposed any substitution of attorney in place of its current attorneys of record, Tovar and Cohen. 24 On April 7, 2025, attorneys Tovar and Cohen filed the pending motion to withdraw as 25 counsel of record for plaintiff. (Doc. No. 195.) Defendants filed a response on April 21, 2025, 26 1 Attorney Tovar provides this date as March 19, 2024. (Doc. No. 195 at ¶ 3.) This appears to 27 be a typographical error, as plaintiff was still represented by attorney Fernald on that date (see Doc. Nos. 175, 181); attorneys Tovar and Cohen were not added as plaintiff’s counsel until July 28 2024 (Doc. No. 182). 1 requesting that if the court grants the motion to withdraw, that the grant be conditioned on new 2 counsel appearing on behalf of plaintiff within 14 days from the court’s order. (Doc. No. 200 at 3 2.) On May 15, 2025, attorney Tovar filed a supplemental declaration pursuant to the court’s 4 May 9, 2025 order directing such a filing. (Doc. No. 206.) Attorney Tovar stated therein that 5 Tovar had mailed and emailed Layton notice that plaintiff, an LLC, may not represent itself 6 without counsel pursuant to Local Rule 183, that plaintiff will be granted 14 days to find new 7 counsel once the pending motion to withdraw is granted, and that failure to file a notice of 8 appearance by new counsel may result in dismissal of this action for failure to prosecute. (Id. at 9 2–3.) 10 LEGAL STANDARD 11 An attorney’s withdrawal is governed by Local Rule 182 and the Rules of Professional 12 Conduct of the State Bar of California (“Rules of Professional Conduct”). In this regard, Local 13 Rule 182(d) provides: 14 Unless otherwise provided herein, an attorney who has appeared may not withdraw leaving the client in propria persona without leave of 15 court upon noticed motion and notice to the client and all other parties who have appeared. The attorney shall provide an affidavit 16 stating the current or last known address or addresses of the client and the efforts made to notify the client of the motion to withdraw. 17 Withdrawal as attorney is governed by the Rules of Professional Conduct of the State Bar of California, and the attorney shall 18 conform to the requirements of those Rules. 19 20 L.R. 182(d). Rule 1.16(a) of the California Rules of Professional Conduct provides several 21 grounds upon which an attorney “shall withdraw from the representation of a client,” including if 22 ///// 23 ///// 24 ///// 25 ///// 26 ///// 27 ///// 28 ///// 1 “the client discharges the lawyer.” Cal. R. Prof. Conduct 1.16(a)(4) (emphasis added).2 2 However, representation shall not be terminated until the attorney “has taken reasonable steps to 3 avoid reasonably foreseeable prejudice to the rights of the client, such as giving the client 4 sufficient notice to permit the client to retain other counsel.” Cal. R. Prof. Conduct 1.16(d). 5 Local Rule 183 further provides that “[a] corporation or other entity may appear only by 6 an attorney.” L.R. 183(a). “While individuals may appear in propria persona, corporations and 7 other entities may appear only through an attorney; an unrepresented entity cannot file any 8 pleadings, make or oppose any motions, or present any evidence to contest liability.” Caveman 9 Foods, LLC v. Ann Payne’s Caveman Foods, LLC, No. 2:12-cv-01112-WBS-CKD, 2015 WL 10 6736801, at *2 (E.D. Cal. Nov. 4, 2015) (citing Rowland v. Cal. Men’s Colony, 506 U.S. 194, 11 202 (1993)). 12 ANALYSIS 13 Here, attorneys Tovar and Cohen move to withdraw as counsel of record on behalf of 14 plaintiff Nevada Fleet LLC, because plaintiff’s principal has “fired” them as its lawyer. (Doc. 15 No. 195 at 3.) In particular, plaintiff, through its principal Mr. Layton, emailed defendants’ 16 counsel directly and informed opposing counsel that plaintiff Nevada Fleet LLC was “once again 17 . . . between legal representations.” (Doc. No. 195 at 11.) Defendants’ counsel then notified 18 attorneys Tovar and Cohen of that email. (Id. at ¶ 5.) As noted above, this is not the first time 19 plaintiff has terminated its attorneys without informing them. (See Doc. No. 181.) In light of 20 plaintiff’s decision to discharge attorneys Tovar and Cohen as its counsel in this action, their 21 withdrawal is mandatory under Rule of Professional Conduct 1.16(a)(4). Thus, the pending

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Nevada Fleet LLC v. Fedex Corp., Counsel Stack Legal Research, https://law.counselstack.com/opinion/nevada-fleet-llc-v-fedex-corp-caed-2025.