Court Grants Defendant’s Request To Condition Law Firm’s Withdrawal On Turnover Of Agreement

On November 29, 2024, Justice Joel M. Cohen granted in part the law firm Morrison Cohen LLP’s motion to withdraw as counsel but conditioned it on the turnover of an agreement reached between the firm’s client and the City of New York. In JTRE 23 WS (Del) LLC v. CS Wall Street LLC, Index No. 654992/2021, Morrison Cohen LLP moved by order to show cause to, among other things, withdraw due to unpaid legal fees. The defendant did not oppose the motion but requested that the Court condition the withdrawal on the production of an agreement in discovery. The Court granted the defendant’s request. It explained:

Defendant's request to condition the withdrawal upon the delivery of the agreement reached between Plaintiff and the City is granted in part. As noted by Defendant, on October 21, 2024, Plaintiff’s counsel represented to the Court that Plaintiff had reached an agreement and a payment plan with the City regarding past due real estate taxes, and that Plaintiff was no longer in default. . . . Despite that representation, Defendant submits that it has not received a copy of this agreement. Accordingly, prior to and as a condition for its withdrawal being effective, if Morrison Cohen is in possession of the above-referenced agreement it shall deliver on behalf of its client Plaintiff a copy of said agreement to Defendant. If Morrison Cohen is not in possession of the agreement, it is directed to advise Plaintiff that Plaintiff must promptly provide the agreement to Defendant OR provide written verification from the City of New York that there is no longer a default in the payment of the past due real estate taxes for the subject condominium units.

The decision highlights one way creative parties can gain discovery from a reluctant counterparty. The attorneys at Schlam Stone & Dolan frequently counsel clients concerning discovery obligations and enforcement. Contact the Commercial Division Blog Committee at commercialdivisionblog@schlamstone.com if you or a client have questions concerning such issues.