Legal Question in Civil Litigation in California

Does a corporation need to qualify in California to bring a lawsuit in California?


Asked on 9/22/10, 7:24 pm

3 Answers from Attorneys

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

In order to sue or be sued, the corporation must be active (not suspended) and it must be represented by a licensed California attorney.

Read more
Answered on 9/27/10, 9:16 pm
Terry A. Nelson Nelson & Lawless

Yes, it must be registered and active.

Read more
Answered on 9/28/10, 1:17 pm
Anthony Roach Law Office of Anthony A. Roach

No. The posts from the two previous attorneys are erroneous. A foreign corporation can sue here. Foreign corporations are prohibited from transacting intrastate business without obtaining a "certificate of qualification" from the California Secretary of State. Corporations Code section 2203 subd. (c) only bars a foreign corporation from "maintaining" an action based on intrastate business transacted in California. (United Med. Management Ltd. v. Gatto (1996) 49 Cal.App.4th 1732, 1739.)

Mr. Stone is correct, in that a corporation, regardless of whether it is foreign or a California corporation, must be represented in the litigation by a licensed attorney.

If a foreign corporation was suing over a non-intrastate matter, there would be no restriction on the lawsuit. If the foreign corporation was suing over an intrastate matter, in which it had done business, then the foreign corporation could file a lawsuit, but the defendant could assert a plea in abatement, raising the fact that they were not qualified. Theaction would only be "abated" until the corporation qualified, not dismissed.

Read more
Answered on 9/28/10, 1:36 pm


Related Questions & Answers

More General Civil Litigation questions and answers in California