## Facts

- Holmes sued Y.J.A. Realty Corp. and its principal, Yori Abrahams, for personal injuries from an alleged slip-and-fall on a defective step at defendants’ apartment building.
- Defendants had no liability insurance and retained attorney Donald Goldman to defend the action.
- Abrahams executed a written retainer on behalf of himself and the corporation providing for periodic billing at $125 per hour and $400 per day for court appearances.
- Goldman billed defendants for services, reflecting an unpaid balance of $2,275.30 after crediting a $3,500 payment.
- For more than five months, defendants refused to pay the balance despite an asserted ability to do so; Abrahams berated Goldman and accused him of disloyalty and a conflict of interest.
- Goldman moved to be relieved as counsel; the trial court denied the motion.
- Defendants did not oppose the motion in the trial court or on appeal, and the plaintiff did not object.
- The case had been pending about three years, and no note of issue had been filed.

## Issues

1. Whether an attorney may withdraw from ongoing litigation where the client deliberately disregards fee obligations under a written retainer agreement.
2. Whether a client’s abusive conduct and accusations against counsel constitute grounds to permit withdrawal because they make representation unreasonably difficult.
3. Whether withdrawal should be denied to prevent prejudice to the opposing party or disruption of the litigation schedule.

## Decision

- The Appellate Division reversed the order denying withdrawal and granted Goldman’s application to be relieved as counsel.
- The court held that the unrebutted record established permissive grounds for withdrawal based on (i) deliberate nonpayment of agreed fees and (ii) client conduct making effective representation unreasonably difficult.
- The court found withdrawal would not materially prejudice the plaintiff or unduly delay the action because it was not on the trial calendar and defendants had time to obtain new counsel.

## Legal Principles

- After litigation has begun, counsel’s withdrawal is subject to court approval, but approval is proper when recognized professional-responsibility grounds are shown.
- Withdrawal may be permitted when a client renders representation unreasonably difficult for the lawyer to carry out effectively (including through abusive conduct and baseless accusations).
- Withdrawal may be permitted when a client deliberately disregards agreements or obligations regarding fees or expenses; counsel is not required to finance a client’s defense or provide gratuitous services when a reasonable fee arrangement is repudiated.
- A detailed statement of services and billing supports the reasonableness of the fee dispute and may be considered on a motion to withdraw.
- Even where withdrawal grounds exist, courts consider prejudice to the opposing party and the posture of the case; withdrawal is more appropriate when the action is not trial-ready and delay-related prejudice is minimal.

## Conclusion

The appellate court permitted defense counsel to withdraw because the clients deliberately refused to pay agreed fees and engaged in abusive conduct that impeded effective representation, and because substitution of counsel would not unfairly prejudice the plaintiff or disrupt the litigation.


Holmes v. Y.J.A. Realty Corp., 128 A.D.2d 482, 513 N.Y.S.2d 415 (N.Y. App. Div. 1st Dep’t 1987)