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LLCs May Appear in Court Only Through an Attorney
Most states now have a ruling to the
effect that an LLC may appear in court only through an attorney. In Illinois that ruling is Stone Street Partners, LLC v. City
of Chicago Department of Administrative Hearings, 12 N.E.3d 691 (May 20, 2014), aff’d
88 N.E.3d 699 (Feb. 20, 2017). A recent decision applied that rule in a
question over jurisdiction. Cross v. Wal-Mart Stores, Inc., 2019 IL
App. (5th) 180350-U, 2019 WL 1984604 (Ill. App 5th May 2, 2019).
This dispute
involved a medical LLC’s claims for payment on services rendered to Cross after
a slip and fall injury in a Wal-Mart store. The LLC was never served, and the
question was whether a non-attorney’s participation in a hearing served to
waive the requirement of service and a consent to the court’s jurisdiction. It
was held that an LLC had not made a general appearance in an action when the
company representative was not an attorney. Rather:
Finally, it cannot be said that the Non-Parties submitted to the
court’s jurisdiction when James appeared at the hearing on Plaintiff’s amended
petition to adjudicate liens and inchoate claims under the Act. The Plaintiff’s
contention that James’ appearance at the hearing to adjudicate the liens was a
“general appearance” by the Non-Parties sufficient to waive service of process
is misplaced. The Non-Parties are limited liability companies, which can only
appear in legal proceedings via an attorney. See Stone Street Partners, LLC, 2014 IL App (1st) 123654, ¶¶ 17,
21. It is undisputed that James, while an employee of the Non-Parties, was not
an attorney and was unable to present evidence and argument on behalf of the
Non-Parties at the hearing. As a non-attorney, James’ attempted
“representation” of the Non-Parties at the hearing does not legally constitute
an “appearance” on behalf of the Non-Parties, waiving the right of the
Non-Parties to service of process to acquire personal jurisdiction.
2019 WL 1984604, ¶
35.
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