Legal Question in Credit and Debt Law in California
Suspended Law Corporation
A third-party debt collector (DC), a Georgia-based corpotation, alleged that I owed them on a credit card debt. Despit the fact neither the DC nor the law firm that they hired a California-based law professional corporation (PC) validated the debt, they sued me. The PC filed the suit back in August. Yesterday I found out that the corporate charter of the PC was suspended in the beginning of July. Everywhere on the paperwork they filed in the court they have their PC's letterheads and PC info.
Question: Can the PC with suspended corporate charter sue me on behalf of the client?
Thanks
3 Answers from Attorneys
Re: Suspended Law Corporation
You can file a Motion for Judgment on the Pleadings if the corporation is suspended. However, a Court generally allows a corporation to revive the corporation. You may have other defenses in the case. Please call me if you have any questions.
Re: Suspended Law Corporation
A corporation whose powers have been suspended for nonpayment of the corporate franchise tax lacks capacity to sue in California courts; and, if sued, it lacks capacity to defend.
Re: Suspended Law Corporation
Presumably, though, the GA-based corporation is the one suing and still has capacity to do so.
On whether a suspended PC can represent a client in court, it seems that this might constitute the unauthorized practice of law. One question to address is whether the attorney certifying the Complaint has done so in his or her individual capacity or as an employee of the suspended PC.
The proper course of action now depends on the procedural posture of your lawsuit. Call the State Bar or an attorney in your area to decide how to proceed.
Good luck!
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