Court Grants Motion to Withdraw Based on Failure to Pay Fees

On January 5, 2023, Justice Reed of the New York County Commercial Division issued a decision in Ankura Trust Co., LLC v. A & L 444 LLC, 2023 NY Slip Op. 50014(U), granting a motion to withdraw as counsel based on non-payment of fees, explaining:

CPLR 321 (b) (2) provides:
an attorney of record may withdraw or be changed by order of the court in which the action is pending, upon motion on such notice to the client of the withdrawing attorney, to the attorneys of all other parties in the action or, if a party appears without an attorney, to the party, and to any other person, as the court may direct.

If an attorney deems it necessary to end the attorney-client relationship without the consent of the client, the attorney may move on such notice as may be directed by the court, to be relieved as counsel by court order. The attorney must submit evidence of an irretrievable breakdown in the relationship or a failure of cooperation by the client. The decision to grant or deny permission for counsel to withdraw lies within the discretion of the trial court, and the court’s decision should not be overturned absent a showing of an improvident exercise of discretion.

Here, Mr. Meister and MSF submitted sufficient evidence, by way of attorney affirmation, of a breakdown in the attorney-client relationship. MSF affirms that defendants refuse to pay legal fees. A party’s refusal to pay legal fees, and lack of overall general cooperation with its attorney, are sufficient grounds to grant leave to withdraw. Here, plaintiffs have failed to provide for the payment of their legal fees and their relationship with legal counsel has subsequently suffered an irreparable breakdown. As such, the motion for withdrawal should be granted.

(Internal quotations and citations omitted).

Stay informed!
Sign up for email alerts and notifications here.
Read more about our Complex Commercial Litigation practice.