Local Rule RULE 2090-5: Temporary Co-Counsel and Attorney Withdrawal.

RULE 2090-5. Temporary Co-Counsel and Attorney Withdrawal.

(a) Withdrawal or Substitution of Attorney for Debtor. A debtor's attorney may withdraw from any case or proceeding, provided either:

(1) a motion with notice filed in compliance with Mont. LBR 9013-1 is served on both debtor and on any opposing attorney, allowing the debtor or opposing attorney to file a response and request a hearing; or

(2) a consent to withdrawal is signed by attorney and debtor, and filed with the Court, where debtor, if an individual, specifies that debtor at the specified address and phone number will appear on debtor's own behalf, or an appearance with consent by a newly retained attorney is filed, or debtor, if a legal entity, specifies the name, address, phone, facsimile number, and email address of the newly retained and substituting attorney.

If no response and request for a hearing is filed within the 14-day period provided by Mont. LBR 9013-1 in subparagraph (1) above, the Court may either routinely grant the motion without a hearing or may set the motion for a hearing.

If, with the consent to withdrawal, the newly retained and substituting attorney files an appearance identifying the name, address, phone, and facsimile number, and email address of the substituting attorney, no hearing is necessary and approval by the Court will be routinely granted. Attorneys commencing employment in the case as newly retained and substituting attorneys for debtor shall file a statement pursuant to Fed. R. Bankr. P. 2016(b) and otherwise fully comply with Mont. LBR 2016-1 and these Local Rules.

(b) Withdrawal or Substitution of Other Attorneys. Notice of withdrawal or substitution of attorneys other than debtor's attorney shall be deemed effective upon filing with the Clerk and shall be served upon all parties to the proceeding, the trustee, and U.S. Trustee.

(c) Temporary Co-Counsel at Meeting of Creditors or Court Hearings. If it becomes necessary for a temporary co-counsel to appear on debtor's behalf at a meeting of creditors held pursuant to 11 U.S.C. § 341(a), or in a hearing before the Court, such counsel shall file a statement required by Fed. R. Bankr. P. 2016(b), outlining the compensation that the debtor will pay counsel, if any, and the nature and limitations of any legal services to be provided by the temporary counsel. This statement shall be filed before the commencement of any legal services and shall be served on debtor, trustee, and U.S. Trustee. At the conclusion of the temporary counsel's services on behalf of debtors, counsel shall file a notice terminating the counsel's representation. Such withdrawal as temporary counsel shall be effective immediately upon filing without further notice, hearing, or order.

(d) Notice for Removal from Service. An attorney no longer wishing to receive notices in a case or proceeding may file a notice requesting that such attorney's name be removed from any service list utilized in CM/ECF or in any certificate of service.

(e) Self-Represented Litigants. If a party without an attorney fails to appear and respond in the case or proceeding after an attorney has withdrawn, defaults and other prejudicial decisions may be entered against such party.

Related Authority: 11 U.S.C. §§ 329 and 504 Fed. R. Bankr. P. 2014 and 2016 Comment: Any attorney agreeing to act as temporary counsel for debtor to attend a creditors' meeting or court hearing on behalf of such debtor must file a declaration of fees pursuant to Fed. R. Bankr. P. 2016(b) that notifies the Court and others a fee has been paid to such counsel by debtor (or that a fee will not be paid, if such is the case), and specifies the amount of such fee, if any, and the nature of and any limitations on the legal services to be provided by such temporary counsel. 11 U.S.C. § 504 prohibits any fee sharing between attorneys who are not members of the same firm, so any fee paid to a temporary co-counsel must be paid directly by debtors. Co-counsel appearing under these circumstances should carefully consider the ethical issues that are attendant upon appearing as co-counsel, as well as the disclosures which should be made by debtor's regular counsel about the use of temporary co-counsel for purposes of appearing with debtor at the meeting of creditors pursuant to 11U.S.C. § 341(a).