Legal Question in Civil Litigation in California
Can an LLC represent itself in a lawsuit?
I'm a managing member of an LLC that has very little worth and I am being sued by another business. Although this suit has no merit and we are owed money by the company suing us, it would cost more money than it is worth to fight it or countersue. We would like to default and spend no further money on the issue, but are told we will have to spend a few thousand dollars on our attorney, just to default. Can we default without an attorney present? If there is a judgement against the company and it does not have the assets to pay, can we be personally liable? What can we do if we cannot afford an attorney?
5 Answers from Attorneys
Re: Can an LLC represent itself in a lawsuit?
No.
Re: Can an LLC represent itself in a lawsuit?
The LLC does not have to make an appearance. That is what a default is. Be careful, however, that you fully understand what the plaintiff is suing for and that there is not potential personal liability for you or others in the LLC.
Re: Can an LLC represent itself in a lawsuit?
The others gave the best answer.
Re: Can an LLC represent itself in a lawsuit?
An LLC (or any other kind of organization) must be represented by an attorney in court. Since the organization itself cannot appear in court, is has to send someone to represent it. Representing the interests of someone other than yourself in court is practicing law, and only lawyers are allowed to do that.
Your company can simply ignore the lawsuit and be defaulted, though depending upon what the suit is seeking this may be a very bad idea. If a default judgment is entered, the plaintiffs could then come after the company.
Whether they could come after you individually would depend upon the specific facts, and you have not provided enough information to make this call.
Re: Can an LLC represent itself in a lawsuit?
It costs nothing to enter a default. You may get a damages award agains the company though and then they may come after you personally.
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