Legal Question in Credit and Debt Law in California

Error in Judgment Ruling

I own a Limited Liability Company (LLC). The company sue a client for non-payment of goods and services ordered and received over a three (3) month period. Client (a medical doctor dba sueblow, MD) wrote a personal check on Thursday, took delivery of final goods on Friday. The following Monday, Client stopped payment on check citing some flaws found in some goods that were received and subsequently used. My company offered to make good on flawed products but client refused delivery of corrected goods.

On appearing in small claims court, the presiding judge took five (5) minutes and ruled that an LLC was a Corporation and therefore could not sue in small claims court. He then dismissed the case with prejudice. Specific wording of his ruling is as follows: '' Plaintiff is a corporation. Case dismissed with prejudice per court order.''

According to California Corporations Code 17050-17062, a limited liability company is organized under the Beverly-Killea Limited Liability Company Act which is a different entity than that formed under Section 200-213 which governs incorporation of an entity.

Question. What are my options? I would like my day in court.


Asked on 12/28/00, 7:56 pm

1 Answer from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: Error in Judgment Ruling

If you think the judge would be willing to follow the law if he understood it you can try filing a motion to reconsider within ten days of the judgment citing the law and any court cases that are relevant on the issue. The other options are filing an appeal or just filing the case in the municipal court.

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Answered on 12/31/00, 2:09 pm


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