Legal Question in Civil Litigation in California
Rights to defend a corporation
My small company is being sued
for an amount much more than
we owe. The attorney has said
''pay or go to court. Your attorney
fees will be more than the claim.''
I understand that eveb though I
am the majority stock holder I
cannot defend the corp. I cannot
afford an attorney. Do I just have
to pay whatever they ask?
3 Answers from Attorneys
Re: Rights to defend a corporation
With the exception of small claims court, corporations cannot legally represent themselves in court without an attorney. If the corporation does not hire an attorney, it cannot legally respond to the lawsuit and a default judgment might be entered against it.
Re: Rights to defend a corporation
How do you know you can't afford an attorney? How many attorneys have you called? Can you afford a huge judgment against you? If you will owe their attorney fees if you lose, they will owe yours if you win.
Re: Rights to defend a corporation
If you're in Northern California, you might want to contact me to take a look at the claim.