Legal Question in Business Law in Texas
Can an individual sue in small claims in behalf of a Corp.?
I am the district manager of an auction company located in Texas. Our parent corporation is in California. We have a certificate of authority in Texas and am licensed, bonded, insured and authorized to do business in Texas.
As the senior manager in Texas, I filed a small claims suit in our county of Midland. The reply from the defendant is that under the US Constitution and laws of the State of Texas, a corporation cannot be represented by an individual.
My question is simple. Is this true? Cannot I represent my company for a $5000 small claims petition or must I hire an attorney?
Thanks for your assistance.
--name removed--Kirkland
2 Answers from Attorneys
Re: Can an individual sue in small claims in behalf of a Corp.?
You can represent your corporation in Small Claim Court. That's the only court in Texas where that is allowed.
Re: Can an individual sue in small claims in behalf of a Corp.?
Below is the applicable section taken from the Texas Government Code. I direct your attention to the last item (e).
=================
CHAPTER 28. SMALL CLAIMS COURTS
SUBCHAPTER A. GENERAL PROVISIONS
Tex. Gov't Code � 28.003 (2005)
� 28.003. Jurisdiction
(a) The small claims court has concurrent jurisdiction with the justice court in actions by any person for the recovery of money in which the amount involved, exclusive of costs, does not exceed $ 5,000.
(b) An action may not be brought in small claims court by:
(1) an assignee of the claim or other person seeking to bring an action
on an assigned claim;
(2) a person primarily engaged in the business of lending money at
interest; or
(3) a collection agency or collection agent.
(c) A person may be represented by an attorney in small claims court.
(d) This section does not prevent a legal heir from bringing an action on a claim or account otherwise within the jurisdiction of the court.
(e) A corporation need not be represented by an attorney in small claims court.
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