Legal Question in Civil Litigation in California

Does anyone know what to do in the case of a Plaintiff serving a Defendant by way of the Plaintiff being an LLC and subsequently the Defendant finding out that that LLC no longer exists as it had filed a Certificate of Cancellation? Now defense wants the case dismissed. What should the Plaintiff do to preserve it's case. The case is close to the trial stage. Any suggestions? Thank you!


Asked on 6/16/10, 1:29 pm

3 Answers from Attorneys

Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

If the LLC is suspended or no longer exists, the defense wins unless the plaintiff's attorney can revive the LLC in a big hurry. And it's a misdemeanor for the plaintiff's attorney to stand up in court and claim to represent the suspended or nonexistent LLC.

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Answered on 6/16/10, 4:37 pm
George Shers Law Offices of Georges H. Shers

Perhaps you can handle it as occurs when a human plaintiff dies and the estate of that person is substituted in. Of course the new plaintiff must have the same legal rights of recovery as the "dead' LLC.

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Answered on 6/16/10, 4:41 pm

When an LLC has been dissolved by filing a Certificate of Cancellation, as opposed to an involuntary suspension or other disability, such as for tax problems, I do not believe the LLC can be revived. Filing the Certificate of Cancellation is supposed to be the absolutely last step in winding up and closing down an LLC. It absolutely never should have been filed with litigation pending, or even with unresolved claims outstanding. The only thing I can think of to do is figure out who among the shareholders or creditors of the LLC (or what business entity successor in interest if the assets were sold) owns the former LLC's right to the causes of action in the case. Then move the court to substitute the current owner of the causes of action in place of the LLC as plaintiff. The other alternative, if the statutes of limitations have not run, is to dismiss and refile under the name of whomever now owns the right to sue.

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Answered on 6/16/10, 4:51 pm


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