Local Rule LBR 2091-1: Attorneys - Withdrawal and Substitution

LBR 2091-1. Attorneys - Withdrawal and Substitution

(a) Withdrawal of Counsel. Withdrawal of counsel is the termination of an attorney's or law firm's representation of a party in a bankruptcy case or adversary proceeding. These rule provisions do not apply when a partner, member, or associate leaves a law firm that will continue to represent the client.

(1) Bankruptcy Cases.

(A) When Motion Required. An attorney seeking to withdraw as counsel in a bankruptcy case must file a motion for court approval if: (i) the attorney represents a debtor; (ii) the court approved the attorney's employment by a trustee or committee under § 327 ; or (iii) the attorney represents a party in a pending contested matter.

(B) Form of Motion. LBR 9013-1(c) governs a motion to withdraw as counsel. The motion must include a statement explaining the reason for withdrawal, unless that would violate the rules of professional conduct, and must indicate whether the client agrees with the withdrawal. If the client is not an individual, the motion must advise the client that an artificial entity may only appear through counsel and that adverse consequences may result if legal representation is not retained promptly.

(C) Service of Motion. The withdrawing attorney must serve the motion and a notice of hearing on the client, the debtor, the trustee, the Office of the United States Trustee, any committee appointed in the case, and the parties to any pending contested matter in which the attorney has appeared.

(D) Notice of Withdrawal. If a motion for court approval is not required, the withdrawing attorney may give notice of the withdrawal by filing a notice substantially conforming to the local form (Notice of Withdrawal of Counsel and Request for Removal from Notice List). An ECF user may also file a text-only docket entry without attaching the form but during the electronic filing must add the client's name and address to the creditor list if the client wishes to receive general notices about the bankruptcy case.

(2) Adversary Proceedings.

(A) Court Approval Required. An attorney seeking to withdraw as counsel for any party in an adversary proceeding must obtain court approval by filing a motion, as described in subparagraph (a)(1)(B) of this rule.

(B) Service of Motion. The withdrawing attorney must serve the motion and notice of hearing on the client, all other counsel of record, and all other unrepresented parties in the adversary proceeding.

(C) Statement of Non-Representation. An attorney representing a debtor in the bankruptcy case whose services in related adversary proceedings are not included in the attorney-client agreement, and who has not made an appearance in the adversary proceeding, is not required to seek court approval but must promptly file a statement of non-representation in the adversary proceeding and serve it on all counsel of record.

(b) Substitution of Counsel. A substitution of counsel is the contemporaneous replacement of one attorney by another attorney authorized to practice before the court.

(1) In General.

(A) The substituting attorney must be admitted to practice in the United States District Court for the District of Hawaii.

(B) This subdivision (b) does not apply if the party will be left without counsel after the "substitution."

(C) If employment of the attorney terminating representation required court approval under § 327, the substitution of counsel will become effective only upon the entry of an order granting an application to employ the substituting attorney.

(2) Bankruptcy Cases. Except as provided in subdivision (b)(1)(C), court approval of the substitution is not required. Substitution of counsel may be accomplished by filing a notice substantially conforming to the local form (Notice of Substitution of Counsel in Bankruptcy Case) containing the signatures of the client and the attorneys involved. The notice must be served on the debtor, trustee, the Office of the United States Trustee, any committee appointed in the case, and parties to any pending contested matter in which the client is involved.

(3) Adversary Proceedings. Notice of substitution in an adversary proceeding may be accomplished with a notice substantially conforming to the local form (Substitution of Counsel in Adversary Proceeding; Order Approving) containing the signatures of the client and the attorneys involved. The notice must be served on other counsel of record and unrepresented parties in the adversary proceeding and submitted to the judge for approval.

(c) Change of Business Address or Firm Affiliation. Subdivision (e) of LR83.1 applies in adversary and miscellaneous proceedings. In bankruptcy cases, an attorney who changes the attorney's business address or firm affiliation must give notice of the change in each pending case in which the attorney has appeared and has not withdrawn. This notice must be filed within 14 days of the effective date of the change.

(1) Form and Service of Notice. The notice requirement may be satisfied by filing a notice substantially conforming to the local form (Attorney's Notice of Change of Address / Attorney's Notice of Change of Firm Affiliation) or electronically filing a text entry on the case docket, in accordance with procedures established by the clerk. The attorney must serve the notice on all parties not receiving notices of electronic filing under CM/ECF.

(2) Change of Firm Affiliation. An attorney who changes firms but will continue to represent the party in a pending case, contested matter, or adversary proceeding must explicitly indicate that information in the notice. An attorney who will no longer be representing the party must include a notice that the attorney is withdrawing representation of that party and must (i) indicate the name of another member of the former firm upon whom service may be made, or (ii) comply with the provisions under LBR 2091-1 regarding withdrawal and substitution of counsel.

(3) Effect of Noncompliance. An attorney who fails to give or serve notice as required by this subdivision (c) may not use deficient service as a defense if pleadings were sent timely to the attorney's former address or law firm.

(4) CM/ECF User Account. An attorney who is a registered ECF user is responsible for changing, promptly after the effective date of the change, the office, address, and email information in the attorney's user account.