The Mean Girls star reportedly fired Holley earlier this month (Jan13) in favour of New York-based attorney Mark Heller - a day before her plea hearing on 15 January (13).
Holley attended the court date in Lohan's absence and entered a not guilty plea on her behalf, and told Commissioner Jane Godfrey the representation issue would be "nailed down" before the actress appeared for a pre-trial hearing on 30 January (13).
According to TMZ.com, Lohan tried to take back the walking papers that she had given Holley and begged her to stay on, but the legal eagle decided it was in her best interests to part ways with the star once and for all, and she is now in the process of officially withdrawing from her embattled client's case.
The troubled actress is now facing a race against time to find a new lawyer and get them up to speed on her troubles as Heller is not licenced to practice in California.
Lohan is accused of violating her probation from her 2011 necklace theft conviction by allegedly lying to a police officer following a car crash in last summer (12).
She faces three charges from the incident - giving false information to a police officer, obstructing or resisting a police officer in the performance of his duty and reckless driving, which, if convicted, could land her in jail for over 240 days.
Lohan is also battling allegations of assault in New York, where she is accused of punching a female club-goer during a night out in November (12).