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Can a member represent the LLC in civil court or must it hire an attorney?

Can a member represent the LLC in civil court or must it hire an attorney?

Q: What happens if I respond to a lawsuit personally instead of through my LLC?

If you respond to a lawsuit personally rather than through your LLC, the court may not accept your response. The lawsuit is against the LLC, so only a licensed attorney can file a formal response on behalf of the business. This could lead to a default judgment against the LLC if proper procedures are not followed.

Q: What is the difference between small claims court and civil court?

Small claims court is designed for simpler cases with lower monetary limits, allowing individuals to represent themselves. Civil court handles larger claims and more complex legal issues, requiring representation by an attorney. In California, claims over $10,000 typically fall under civil court jurisdiction.

Q: Can I defend my LLC in small claims court?

Yes, in small claims court, an LLC can be represented by one of its members. This allows you to defend your LLC without needing an attorney, provided the claim amount is within the small claims limit. However, if the case is in civil court, an attorney is required.

Q: What should I do if I can't afford an attorney for my LLC's lawsuit?

If you cannot afford an attorney, consider seeking legal aid services or pro bono assistance in your area. Many organizations provide free legal help for those who qualify. You can also look for resources that offer legal templates or guidance for self-representation, especially if your case is in small claims court.

Full question:

I am the majority shareholder (83%) in Quantum Labs LLC. Quantum Labs LLC is being sued by FedEx Freight for late payment in Civil Court for $10,830. I personally filed a response to the suit claiming 'Unjust Enrichment' since the last statement from FedEx Freight we received was only for $4,400. Now the Plaintiff is requesting a Default Judgment on the basis that I personally responded, and not an attorney, since Quantum Labs LLC is being sued. My question is: Shouldn't I personally have the right to respond since I am the majority shareholder, and the $'s in question is less than $5000 (this suit should be in small claims court, not civil court, where there are no attorneys allowed - right?)? Can't I defend myself? Or do I need an attorney to respond?If I can defend myself, please recommend the proper forms that I should purchase. Thanks,A.J. Robertson

Category: Civil Actions
Date: 04/07/2025
State: California

Answer:

In a California small claims action, a LLC may be represented by a member of the LLC. However, the formal answer must come from the LLC not the individual since the claim is against the business not the member personally.

The amount of the claim you mentioned means that your case is not being adjudicated in small claims court where the rule allowing self-representation exists. Therefore, in civil court the LLC must be represented by legal counsel.

The rationale for this requirement in part may because a LLC can only act through its agents which opens the door to anyone claiming to be representing the company. With a lawyer to hold responsible for any falsehoods, the courts may feel more security that false representations aren't taking place. In other words, if the representative is limited to lawyers, who are officers of the court and regulated by the State Bar, a lawsuit filed without proper authority to represent the corporation means the lawyer can be disciplined by the Court, the State Bar, or both. Also, this is the only way that the court can know that the company is being given proper legal advice. Otherwise, the company can say it was given bad advice by a non-lawyer and possibly the court will need to rehear past decisions.

This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.

FAQs

Can I represent my LLC in court if I am not an attorney?

In civil court, an LLC must be represented by a licensed attorney. This rule ensures that the legal process is upheld and that the court can hold the attorney accountable for their representations. If you are involved in a lawsuit against your LLC, it is advisable to hire an attorney to handle the case properly.