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Jane T (LLC)
Jane T (LLC), Attorney
Category: Business Law
Satisfied Customers: 8435
Experience:  Worked in corporation's law department; business formations, formalities, and other business matters
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Our company is headquartered in Columbus, OH and is a Delaware

Resolved Question:

Our company is headquartered in Columbus, OH and is a Delaware C Corp. We recently lost legal counsel.   Overview and question: The State of Ohio has garnished our accounts as a means to collect on a cognovit note. The cognovit note was signed to settle a dispute with the state. We received a grant from the state, and in their eyes we did not create a sufficient number of new jobs. A hearing is scheduled for this coming Wednesday where we wish to plead that our accounts are exempt from garnishment, since we provide emergency services to governmental agencies. We cannot plead pro se. Is there any stay that can be presented until we get a new attorney?
Submitted: 8 years ago.
Category: Business Law
Expert:  Jane T (LLC) replied 8 years ago.

Dear Gallegher1973,

 

How long ago did you lose legal counsel?

 

Was this counsel working on your court case?

 

Did the counsel petition the court to allow removal from the case?

 

Have you been seeking new counsel?

 

 

Customer: replied 8 years ago.

1. We lost legal counsel approximately a week ago.
2. This legal counsel was negotiating with the State of Ohio for almost a year. For all intents and purposes there was no court case. A presentation of the Cog Note was made and the judge issued a judgement. As I'm sure you're aware, the State of Ohio still subscribes to the "confession of judgement" doctrine. We made neither an appearance nor an entry.
3. Based on answer 2, this question is moot.
4. Yes we have. Tough to do, however, with your assets frozen and you guys wanting retainers up front. LOL.

FYI: The agency putting the squeeze on us and possibly putting us out of business is the Department of Development, responsible for managing the new stimulus package. Creating jobs?
Expert:  Jane T (LLC) replied 8 years ago.

DearCustomer

 

So this hearing then is for an appeal on the judgment filed by your organization?

 

 

Customer: replied 8 years ago.

No. This in not an appeal. Within the State of Ohio, the garnishment commences and the funds are held by the state. Then within approximately 5 days of initiating the garnishment a Hearing is set. You cannot argue the merits of the judgement at the Hearing; but rather, you can argue that the assets that are being garnished are exempt. We believe we are exempt due to the nature of our business. ( emergency services to Homeland Security, etc. )
Expert:  Jane T (LLC) replied 8 years ago.

DearCustomer

 

Got you, I wanted to be sure I was aware of what the hearing was about/for. There are several issues here that would support a delay of the hearing. A corporation in OH normally must be represented by legal counsel and none has yet been found. As this matter had not previously involved court action by your attorney, then, of course leave to abandon the case may not have been necessary, but the "quiting" of an attorney at this late date does now put the company in a situation that it is actively searching for but has not yet found counsel.

 

While, of course the longer you delay the longer the money will be unavailable for other uses, courts will normally grant extensions or delay hearings until such time as new counsel may be located and have time to learn about the case. Due to the urgent time frame here you may want to contact the judge's chambers today and try to speak to the judge or to his/her magistrate (the sooner the better) to discuss the matter and ask if they will consider such delay, even if not filed by legal counsel, as none is available to do it. Then, if they will, you can ask them what type of motion they will want and what they need to have included in that motion. This, if possible, should be filed today or no later than tomorrow AM to allow the court to have sufficient time to review. Because OH does not permit corporations through their agents to file or stand in court for them which can include motions for delay, this will be a trickly situation for the court and you will need to speak with them to assure the actions taken are able to stand in court without harming your future arguments. If the court will not accept such action then you may need to find a local attorney, if only one to write the motion for delay, to allow you the time to find new counsel.

 

 

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