Legal Question in Business Law in California

cannot show up for business trial...what happens now?

My old company is suing my partner and I for ''misappropriating trade secrets'' & ''starting a competiting company'' and a few other things. They are suing our LLC and us personally.

My question is, the court just set a trial date for later this year. We can no longer afford or attorney or a trial. We are basically representing ourselves now.

Obviously, we're not qualified to represent ourselves and would like to know what happens when we do not show up at trial????

Does the plaintiff just win by default and receive their judgement. Or, are their other consequences that I'm not aware of? Basically, knowing that we'll lose, is it still ''ok'' that we don't show up to a business trial?

Please help.

Thank you,

--name removed--


Asked on 1/14/04, 3:53 pm

5 Answers from Attorneys

Michael Olden Law Offices of Michael A. Olden

Re: cannot show up for business trial...what happens now?

Under no circumstances should you or your partner be unrepresented. A judgment is good for 20 years. Ten years on its face and ten years thereafter if properly extended. More importantly, it allows for numerous invasions into your private lives to which you have no idea at this point. You act as if it's all over and you will be found responsible, full liability. In this situation did anyone determine if there was insurance which would've covered at least the defense in this situation??? As importantly is their insurance which covers your liability of any. I me kind of attorney that until I really see all the facts there's no way I'm going to determine that you are responsible or liable. If you've done something really stupid and you are liable then there are ways of attempting, the word is attempting if everyone agrees, to reduce that liability. Do not allow the trial to take place without you being represented by an attorney who is substantially familiar with your case. You can't wait for the day before an attorney's don't take this kind of matter on contingency. I'm sorry I have no better words for you. i have been practicing law in this speciality for over 30 years in the san francisco bay area and if you wish to consult with me you can contact me at 925-945-6000. Lastly and most importantly under no circumstances are you to not to show up for trial. Not showing up gives the other side carte blanche in the cords will not look with any sympathy toward you in determining what your liability is. Nobody is there to mitigate your situation if all you have his mitigation. It is the most stupid thing you could do.

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Answered on 1/15/04, 6:04 pm
Larry Rothman Larry Rothman & Associates

Re: cannot show up for business trial...what happens now?

If you do not particpate, a judgment could be entered against you which may include punitive damages that are non-dischargable in bankruptcy.

We may be able to assist you pro per, and then substitute into the case at trial. 714 363 0220.

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Answered on 1/14/04, 3:58 pm
Ken Koenen Koenen & Tokunaga, P.C.

Re: cannot show up for business trial...what happens now?

If you know that you are going to lose, why don't you sit down with them and work out a settlemnt. It will generally cost less in the long run, for both you and them. If you don't show up for trial, they can claim any damages and you won't be there to argue against them. Not showing up is the worst thing you can do.

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Answered on 1/14/04, 4:25 pm
Robert Miller Robert L. Miller & Associates, A Law Corporation

Re: cannot show up for business trial...what happens now?

Thank you for your posting.

If you don't show up for trial, aside from sanctions or other penalties, the most likely outcome is a judgment by default against you. With a judgment, the plaintiff can begin collecting, including garnishing wages or seizing property, immediately after the judgment is entered.

I hope that this information helps, but if you want more information, have further questions, or feel that you need legal representation, please feel free to email me directly at [email protected]. It's my pleasure to assist you in any way that I can.

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Answered on 1/14/04, 4:27 pm
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: cannot show up for business trial...what happens now?

You didn't discuss three issues or subjects that would be helpful to a lawyer trying to assist or advise you. These are:

(1) What is the procedural stage of the complaint against you? I assume if a trial date has been set, that you answered the complaint, and there probably has been some discovery and some attempts at alternative dispute resolution (ADR) which is required in most counties. Where does the case stand? Also, what defenses did you raise in your answer?

(2) What are the merits of the complaint and your defenses? Are you giving up on defending only because you can't afford to defend, or do you feel that your position is very weak? What were (or are) the prospects for settling out of court on better terms that a default judgment?

(3) If there is a judgment against you, what do you have to lose? If you have substantial income or property, that's one thing; if you are penniless, that's another.

I would think you should at least defend the claims brought against you personally on the ground that the LLC, if anyone, ought to be liable.

Also, you should explore every opportunity to settle out of court. If the business is no longer operating and has essentially failed, the plaintiff has little to gain from continuing to prosecute.

Finally, even if you can't afford a lawyer and can't get someone to take the case "pro bono," you are better off showing up in court and doing your best "in pro. per." rather than defaulting.

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Answered on 1/14/04, 4:43 pm


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