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Postville, IA - Agriprocessors Attorneys Withdraw As Counsel, Cite Non-Payment |
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On May 20 Creative Source Group, a graphic design firm previously contracted by Agriprocessors, brought suit against the meatpacking company in federal court for nearly $300,000 in unpaid invoices.
The complaint filed by Creative Source Group was answered on June 16 by attorneys Jay Eaton and Patrick White of the Nyemaster, Goode, West, Hansell & O’Brien law firm.
The same attorneys filed a motion to withdraw as counsel for Agriprocessors. The motion was granted by U.S. Magistrate Judge Jon Stuart Scoles.
“The client has stopped paying counsel for its services and, as such, has failed to substantially fulfill its obligations to counsel,” wrote the Nyemaster Goode attorneys in their motion with the court. “Counsel has given reasonable warning to the client that counsel will withdraw unless the client fulfills its obligations. The client has continued to fail to fulfill its obligations.”
Agriprocessors has been given 21 days to obtain substitute counsel. To date no substitute counsel has filed on behalf of Agriprocessors with the court.
“Agriprocessors is advised that if it fails to obtain substitute counsel by Oct. 13, 2008, then it will be in default and judgement may enter against it,” Scoles wrote in his order.
Although attorneys for the Creative Source Group argued against the motion to withdrawal, they were ultimately unsuccessful in convincing the judge that the change would cause a severe time delay in the case.
The case currently has a trail ready date of May 18, 2009.
The Nyemaster Goode law firm was also listed as counsel for Agriprocessors and three members of plant management in a wrongful termination and slander lawsuit brought by former plant supervisor Orlando Rodriguez Perez. Thomas Cunningham, an attorney with Nyemaster Goode, notified the court of the firm’s non-representation, citing the filing in the Creative Source Group vs. Agriprocessors case.
The Rodriquez Perez suit names the company as well as Heshy Rubashkin, vice president of operations, marketing and sales, Gary Norris, operations manager and Neal Rawley, warehouse and shipping manager. The three individuals as well as Chaim Abrahams, a representative for Agriprocessors, were sent a letter by Jay Eaton of the Nyemaster Goode law firm in mid-September.
“This letter is to notify you that our firm will not be representing any of you or filing an appearance on your behalf in this action,” wrote Eaton. “The date by which each defendant must answer or file a pre-answer motion is September 29, 2008. Accordingly, we urge you to immediately retain council to defend you in this action. Failure to file an answer or pre-answer motion can result in a default judgement filed against you.”
On Sept. 29, attorneys with the Des Moines-based Belin Lamson McCormick Zumbach Flynn law firm notified the court that they would be representing the defendants and also filed an extension on the previous deadline. Judge Scoles granted their request Tuesday and set a new answer date of Oct. 29.
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Read Comments (14) — Post Yours »
1
Oct 02, 2008 at 02:32 PM Anonymous Says:
Perhaps Bernard Feldman, Agri's new CEO, will elect to represent the comapny himeself.
2
Oct 02, 2008 at 02:45 PM Anonymous Says:
I spoke to someone who works there and said that the OU is sill there like usual
3
Oct 02, 2008 at 02:42 PM yossel Says:
what's so important about that piece of news?
I changed atty's on several occacions in my co. and it was no big deal!!!!
4
Oct 02, 2008 at 03:32 PM Dave Says:
Yossel:
You change your lawyer, no big deal.
Your lawyer goes to court and fires you, big deal.
5
Oct 02, 2008 at 04:06 PM kosher buyer Says:
one thing i know i am having a hard time buying fleish for yom tov
i did settle with Solomon's
which is pretty good
i wish them luck and to all a gmar chasima tove in all of your endeavors
6
Oct 02, 2008 at 06:39 PM whoever Says:
Did I misunderstand the article or are the Rubashkins hopelessly irresponsible? They were in court for not paying a graphic designer, and then they lost their lawyers for not paying *them*? Apparantly they still think that they can kak afn gantzen velt and getr away with it.
7
Oct 02, 2008 at 06:38 PM Anonymous Says:
Look at the dates. Rubashkin did not pay for packaging in the tune fo $300,000. The company sued him on mAy 20. That means that the money was owed way before the raid.
Is this a way for a frum company to act? Owe $300,000 to a single supplier? This will probably put the supplier out of business!!
Why would Rubashkin refuse to pay the supplier and refuse to pay the lawyer??
8
Oct 02, 2008 at 07:12 PM Cut them some slack Says:
Look at these heartless posts!
People, Aseres Yemei Tshuva.
Be not quick to judge, lest you be judged.
Obviously, they are having severe financial problems.
Good grief, cut them some slack.
9
Oct 03, 2008 at 12:02 AM Anonymous Says:
They were not having "severe financial problems" before the raid and could have paid their graphic arts firm the $300,000 they owe well before it became a court matter. No, this fits a pattern of how the Rubashkin's have done business in the past.
Who knows, maybe they gave the $300,000 they owe this company to Chabad. There was a movie like this some time ago - I think it was called "Other People's Money."
10
Oct 03, 2008 at 12:02 AM Anonymous Says:
You change your lawyer, no big deal.
Your lawyer goes to court and fires you, big deal.
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Sorry, that's not how it works. A client can fire his attorney for cause or no cause at all. On the other hand, as this article points out, an attorney can fire his client only for good cause, such as non-payment.
11
Oct 03, 2008 at 06:09 AM Anonymous Says:
“ Look at these heartless posts!
People, Aseres Yemei Tshuva.
Be not quick to judge, lest you be judged.
Obviously, they are having severe financial problems.
Good grief, cut them some slack.
”
Heartless? Were they heartless when they did not pay a $300,000 bill? Cut us some slack - what happen if this was a frum guy and depended on this money for his business? How many people would live on $300,000? How many families that would not have food or clothing or shelter?
There are butcher stores all over that rely on the CHK for hashgacha and haver no meat! What do they do for Yom Tov? Eat fish? When the Rubashkins act responsibly, then we will trust them again.
12
Oct 03, 2008 at 10:52 AM Anonymous Says:
“ Heartless? Were they heartless when they did not pay a $300,000 bill? Cut us some slack - what happen if this was a frum guy and depended on this money for his business? How many people would live on $300,000? How many families that would not have food or clothing or shelter?
There are butcher stores all over that rely on the CHK for hashgacha and haver no meat! What do they do for Yom Tov? Eat fish? When the Rubashkins act responsibly, then we will trust them again. ”
they will never act responsibly . its engrained in them to act crooked. tel the ruashkin to sell the place before he cant get a dime for it.
13
Oct 03, 2008 at 02:21 PM Milhouse Says:
Why are all these commenters assuming that they really owed the money? If someone sends you a $300K bill, do you automatically pay it? And if your lawyer starts billing you excessively, do you pay him? As a customer you're entitled to dispute any bill that you think is incorrect or excessive, and if the other party maintains their claim it may end up in court. That's how business works. Move along, there's nothing to see here.
14
Oct 03, 2008 at 05:54 PM Anonymous Says:
“ Why are all these commenters assuming that they really owed the money? If someone sends you a $300K bill, do you automatically pay it? And if your lawyer starts billing you excessively, do you pay him? As a customer you're entitled to dispute any bill that you think is incorrect or excessive, and if the other party maintains their claim it may end up in court. That's how business works. Move along, there's nothing to see here. ”
milhouse - I would expect no less from you.
When you have facts, then please enlighten us. Hypotheticals are not evidence.
This case has been around for a long time. Rubashkin did not pay the lawyer. Period. He did not pay the graphic designer. If he had a tayneh, then he should have gone to arbitration.