Wednesday, May 15, 2013

Yet Again, an LLC Must be Represented by Counsel

Yet Again, an LLC Must be Represented by Counsel
      In a recent decision, the U.S. District Court for the Southern District of South Dakota has directed an LLC to retain counsel on its behalf with the possible penalty of a default judgment if it fails to do so.  Peterson v. RVS Line L.L.C., Civ. No. 12-4185-KES (D. S.D. Feb. 13, 2013). 
      In this case, the President of RVS Line, L.L.C. filed an answer on behalf of the L.L.C. in response to a negligence action brought by Peterson,  The President of RVS Line, Solovyev was not himself an attorney.  The Court, reviewing the long line of cases holding that a corporation may appear in court only through an attorney, applied those same principles to this limited liability company.  As such, RVS Line was directed to hire counsel to file an answer on its behalf.  Failure to do so, it was warned, could result in Solovyev’s answer being stricken and a default judgment being entered against the company.

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