Alabama Court Addresses Venue for Actions Against LLC

Alabama Court Addresses Venue for Actions Against LLC

Alabama has three statutes addressing venue; one for individuals, one for unincorporated associations, and one for corporations.  In a recent decision from the Alabama Supreme Court it considered which of these statutes applies in a suit involving an LLC.  Ex parte Rivers, 2025 WL 2739216 (Ala. Sept. 26, 2025).

This decision required the Court to parse the various venue statutes to determine which of the three would apply to a suit against an LLC, the options being the venue statute for suits against individuals, suits against unincorporated associations, and suits against corporations.  After reviewing the history of the statutes, it was determined that the corporate venue statute would apply as to suits against LLCs.  The venue statute for unincorporated associations was held not applicable because at the time of its adoption that class was for partnerships and other organizations without a distinct legal personality, a taxonomy inapplicable to LLCs. On the other hand LLCs are legal entities legally distinct from their members, just as corporations are distinct from their shareholders, so the corporate venue statute is the better fit.