Tuesday, July 5, 2011

Corporations and Limited Liability Companies Must Have Attorney Representation in Court

Business entities, whether it be a limited liability company (LLC) or a corporation must be represented by an attorney in court. Even if you are a sole owner of the LLC or a corporation, you cannot represent your own company - you must have a lawyer do so. Do not find this out the hard way. The court may dismiss the case and/or award sanctions against you.

The WA Court of Appeals, Division I, affirmed this principle today in the opinion of Dutch Village Mall (LLC) v. Raymond Pelletti (holding that LLC must be represented by an attorney to litigate matters). This principle was previously established in Lloyd Enters., Inc. v. Longview Plumbing & Heating Co., 91 Wn. App. 697, 701, 958 P.2d 1035 (1998) (which stated "Washington law, with limited exception, requires individuals appearing before the court on behalf of another party to be licensed in the practice of law.") This same principle was also upheld in the unpublished opinion of Ponderosa Hill, Inc. v. County of Spokane.

The reasoning behind this rule is that all pleadings must be signed either "pro se" (by oneself) or by a licensed attorney. Business owners, doing business under entity protection (LLC, Corp, etc.), should always remember that the entity is always separate and distinct from oneself and only those licensed to practice law may represent the interests of someone else (or an entity) in court. You cannot benefit from the protections of an entity and then ignore them at your choosing. Hence, you cannot file pleadings or litigate matters on behalf of the entity.

2 comments:

  1. Of course, hiring lawyer services will ensure that you are following all the legal procedures in establishing and operating an LLC.

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  2. If it is decided that corporations are not people. Could this allow for a corporation to be represented by it's president or CEO?

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