Legal Question in Business Law in California
Is there any law, rule or regulation which states that a corporation must be represented by an attorney (as opposed to pro per se by its president) when a defendant in a civil case?
4 Answers from Attorneys
There is no rule that outright requires that an attorney represent a corporation that is a defendant in a civil case. However, the directors of the corporation owe a duty of good faith. Under this duty of good faith, they must serve in a manner that they believe to be in the best interests of a corporation. An ordinarily prudent person in the position of the directors may deem it in the best interest of the corporation to hire legal counsel to defend the corporation in a civil suit. Based on this standard, if the directors fail to properly defend the corporation, they could be personally held liable to the corporation and to its shareholders for damages. Hence, while there is no specific rule stating that an attorney is used to defend the corporation, I recommend that you retain an attorney to represent the corporation.
The California Court of Appeal has held that �under a long-standing common law rule of procedure, a corporation, unlike a natural person, cannot represent itself before courts of record in propria persona, nor can it represent itself through a corporate officer, director or other employee who is not an attorney.� CLD Construction, Inc. v. City of San Ramon, 120 Cal. App. 4th 1141, 1146 (Cal. App. 1st Dist. 2004). Rather, �[i]t must be represented by licensed counsel in proceedings before courts of record.� Id., citing Caressa Camille, Inc. v. Alcoholic Beverage Control Appeals Bd. 99 Cal.App.4th 1094, 1101�1103 (2002).
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I agree with Mr. Haddock's answer and disagree with Ms. Matsunga's.
I agree with Mr. Haddock. The only thing I would clarify is that, typically, one of the few times a non attorney can represent a corporation is in small claims court. If this is a limited or unlimited civil case the corporation must be represented by a licensed attorney. Please let me know if I can be of any more assistance.
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