Judge: Elaine Lu, Case: 22STCV10348, Date: 2025-02-04 Tentative Ruling

Case Number: 22STCV10348    Hearing Date: February 4, 2025    Dept: 9

Superior Court of California

County of Los Angeles

Spring Street Courthouse, Department 9

On January 10, 2025, Attorney Imbar Sagi-Lebowitz and Thomas Daugherty-Klinedinst PC (collectively “Counsel”), filed the instant motions to be relieved as counsel for defendant Avartara, LLC (“Client”).

The Court hereby sets a status conference for March 19, 2025 at 8:30 am.  The status conference will concern the status of settlement and/or setting of a deadline for filing of Plaintiff’s motion for class certification. 

Counsel has filed a form MC051 and MC-052 and has lodged with the Court a copy of the proposed order on form MC-053 pursuant to CRC Rule 3.1362.  

The MC-052 form states that Counsel served Client via mail at Client’s last known mailing address which Counsel states she has confirmed as current within 30 days of the motion by telephone, conversation, and email exchanges. 

Counsel states that there has been a breakdown in the attorney-client relationship making it difficult, if not impossible, to continue representing Client in the case. 

Counsel is ordered to electronically file a new and revised proposed order on form MC-053 prior to the commencement of the hearing.  Provided that such new and revised proposed order is electronically filed before the hearing, the Court is inclined to grant the motions based on the declaration Counsel has filed. 

1.     The new and revised proposed order on form MC-053 must include the Court’s full address in items 7(a), 8 and 9(b). 

2.     Box 5(a) should be checked off (“effective upon the filing of the proof of service of this signed order upon the client”) instead of box 5(b) (“effective on [specify date]”).

3.     In item 6, please list a telephone number and email address for Client if possible.

4.     The Court’s records show the following upcoming hearings, which must all be listed in the new and revised proposed order (MC-053):

a.      In item 7(a), add: “March 19, 2025 at 8:30 am, Spring Street Courthouse, 312 N. Spring Street, Dept. 9, L.A., CA 90012.”  In item 7(b), add: “Status conference re status of settlement and/or setting of a deadline for filing of Plaintiff’s motion for class certification.”

b.     In Item 13 add: “A corporation or LLC must be represented by licensed counsel in proceedings before this Court. Avartara, LLC is ordered to file a substitution of counsel by no later than March 4, 2025 and to appear on March 19, 2025 at 8:30 am in Department 9 with its new counsel.  Avartara, LLC’s failure to timely retain new counsel by March 4, 2025 or failure to appear on March 19, 2025 may result in the answer being stricken, the entry of default and default judgment against Avartara, LLC.  Moving Counsel is ordered to file proof of service of this signed order (MC-053) and the concurrently filed Order re Motion to Be Relieved as Counsel on all parties within 3 days.”

Counsel is responsible for determining if there are any other hearings scheduled or due dates for discovery for this case, including any motions hearings, which must all be listed in the proposed order. 

As to defendant Avartara, LLC, the Court notes that while a corporation has the capacity to bring a lawsuit because it has all the powers of a natural person in carrying out its business, under a long-standing common law rule of procedure, a corporation, unlike a natural person, cannot represent itself before courts of record in propria persona, nor can it represent itself through a corporate officer, director or other employee who is not an attorney.  (CLD Const., Inc. v. City of San Ramon (2004) 120 Cal.App.4th 1141, 1145.)  “[A Corporation] must be represented by licensed counsel in proceedings before courts of record.  (Id.; Gutierrez v. G & M Oil Co., Inc. (2010) 184 Cal.App.4th 551, 564; Thomas G. Ferruzzo, Inc. v. Superior Court (1980) 104 Cal.App.3d 501, 503.) However, “[a]n attorney may be allowed to withdraw without offending the rule against corporate self-representation.” (Thomas G. Ferruzzo, Inc., supra, 104 Cal.App.3d at 504.)

Though the court is unaware of any published California authority directly on point, it appears that the rule prohibiting self-representation for corporations has been repeatedly applied to limited liability companies as well.  (See, e.g., Lippenberger v. Canal Properties (2009) 2009 WL 3353685 at *5 [“limited liability companies cannot appear in court in propria persona but must be represented by an attorney”]; Avignon Julian LLC v. Canete (2010) 2012 WL 3528142 at *1 [holding that a limited liability company cannot represent itself in court in propria persona through its sole member]; see also Clean Air Transport Systems v. San Mateo County Transit Dist. (1988) 198 Cal.App.3d 576, 579 [approving trial court’s ruling that an unincorporated association could only be represented by a licensed attorney].)

In light of these authorities, the Court will require that Avartara, LLC timely retain new counsel and file a substitution of counsel by no later than March 4, 2025.  The court hereby sets an OSC regarding status of Avartara, LLC’s representation for March 19, 2025 at 8:30 am in Department 9.  Avartara, LLC is ordered to appear on March 19, 2025 with its new counsel.

If Avartara, LLC fails to file a substitution of counsel by no later than March 4, 2025, Avartara, LLC is ordered to appear on March 19, 2025 at 8:30 am in Department 26 and show cause why Avartara, LLC’s answer should not be stricken, and why default and default judgment should not be entered against Avartara, LLC on Plaintiff’s Second Amended Complaint.  Avartara, LLC’s failure to appear on March 19, 2025 at 8:30 am in Department 9 shall be deemed consent to: striking of Avartara, LLC’s answer, and entry of default and default judgment against Avartara, LLC on Plaintiff’s Second Amended Complaint.

The proposed orders (MC-053) are corrected to add the March 19, 2025 OSC hearing to items 8 and 13.

The corrected Orders are signed and filed, and Counsel is relieved as counsel of record for Avartara, LLC, effective only upon Counsel’s filing of the proofs of service of the signed Orders upon Avartara, LLC.  Counsel will remain the attorney of record until Counsel files proof of service of the signed order on all parties, including Avartara, LLC.  

Counsel is ordered to serve copies of the instant order and the signed form MC-053 order on all parties, including Avartara, LLC, and file proof of service of such within 3 days.

DATED: February 4, 2025                                         ___________________________

                                                                              Elaine Lu

                                                                              Judge of the Superior Court