Legal Question in Appeals and Writs in California

Suspended Corporation allowed in Small Claims now appealing judgement

Hello,

I was sued by a suspended corporation in small claims, we filed counter claim. We won our counter claim and judgement was made that we did not owe plantiff any monies and they owed us $3500.00.

I brought the suspended corporation issue forward in the small claims hearing with a certified documentation and the small claims judge said they would take it under consideration and allowed the plantiff to continue, basically just moved on.

I won the judgement (filed for $7500 and granted $3500) and now the plantiff has appealed to the judement and this is going to superior court, still aa a suspended corporation.

What are my next steps, I really don't want to go thru this again?

1. The corporation lacked the capactiy to file suit in small claims or any court, or appeal but they where allowed to proceed? How do I bring this forward, the first plan to bring this to the attention of the judge/court wiith certified documents didn't seem to work.

2. I have an attorney, pass this off to him and ask for a default judgement for the full claim ($7500 vs $3500) granted and note the courts error in allowing a suspended corporation to file suit and provide defense?

Can I now ask for a default judgement?


Asked on 9/23/08, 11:02 pm

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Suspended Corporation allowed in Small Claims now appealing judgement

You won't get a default.

Do the same thing you did in the lower court, object to the suspended corporation's capacity to either sue or to defend a lawsuit, and bring the documentary proof.

Maybe you will get a judge who knows the law this time.

You could also draft a "trial brief" citing: Revenue & Taxation Code � 23301; Reed v. Norman (1957) 48 Cal.2d 338, 342; and Color-Vue, Inc. v. Adams (1996) 44 Cal.App.4th 1599, 1603-04. Be sure and actually look up these statutes and cases before citing them to the judge.

Further, the person who appears on behalf of the suspended corporation is committing a misdemeanor crime by just showing up. Revenue & Taxation Code � 19719.

If the contract, or the applicable law, provides that any party is entitled to attorney fees if they win, read the contract (even a one-sided attorney fee provision is construed as being in favor of the prevailing party), then it won't cost you anything to have an attorney prepare your trial brief and appear on your behalf at the trial.

Otherwise I would say, given the high probability of a slam-dunk win against a suspended corporation, don't hire an attorney.

Read more
Answered on 9/23/08, 11:22 pm


Related Questions & Answers

More Appeals and Writs questions and answers in California