SUPERIOR COURT OF THE STATE OF CALIFORNIA  

FOR THE COUNTY OF LOS ANGELES - CENTRAL DISTRICT 

 

On April 8, 2025, the Court heard Defendants Rene Ibarra (Defendant), Ricardo Uribe (Defendant), and Ibarra Investments Inc.'s motion to set aside default. The Court continued the hearing to allow the parties to file supplemental briefing. On April 21, 2025, Plaintiff filed a declaration stating that Ibarra Investments Inc. is suspended. On April 28, 2025, Defendants filed a declaration. Defendants do not dispute that Ibarra Investments Inc. is suspended but contend that it is in the process of applying for a certificate of revivor. 

Under California law, a corporation ordinarily has the capacity to sue. (See Corp. Code, § 207; Color–Vue, Inc. v. Abrams (1996) 44 Cal.App.4th 1599, 1603–1605.) However, a corporation that has had its powers suspended lacks legal capacity to prosecute or defend a civil action during its suspension. (Tabarrejo v. Superior Court (2014) 232 Cal.App.4th 849, 861.) 

The primary purpose of statutes depriving suspended corporations of litigation privileges is not punitive, but to encourage compliance with tax and reporting obligations. Once those objectives are met, further penalties serve no purpose. The law favors leniency by permitting a delinquent corporation to secure a revivor, even at the time of the hearing, either at the corporation’s request or on the Court’s own motion. When a corporation's suspended status is revealed during litigation, the normal practice is for the Court to allow a brief continuance to enable the suspended corporation to reinstate and participate in the proceedings. (Cadle Co. v. World Wide Hospitality Furniture, Inc. (2006) 144 Cal.App.4th 504, 512–513.) 

The parties do not dispute that Defendant Ibarra Investments Inc. is suspended and therefore lacks capacity to defend this action including filing the present motion to vacate. However, the normal practice is for the Court to allow a brief continuance to enable the suspended corporation to reinstate and participate in the proceedings. (Cadle Co. v. World Wide Hospitality Furniture, Inc. (2006) 144 Cal.App.4th 504, 512–513.) 

The Court therefore continues this matter for 30 days to allow Defendant Ibarra Investments Inc. to acquire a certificate of revivor. The new hearing date is _______.  Defendant Ibarra Investments Inc. is ordered to file a Declaration re Coprorate Status advising the Court of Ibarra’s status 5 days before the hearing. 

 

Parties who intend to submit on this tentative must send an email to the Court at SSCDEPT27@lacourt.org indicating intention to submit on the tentative as directed by the instructions provided on the court’s website at www.lacourt.org.  Please be advised that if you submit on the tentative and elect not to appear at the hearing, the opposing party may nevertheless appear at the hearing and argue the matter.  Unless you receive a submission from all other parties in the matter, you should assume that others might appear at the hearing to argue.  If the Court does not receive emails from the parties indicating submission on this tentative ruling and there are no appearances at the hearing, the Court may, at its discretion, adopt the tentative as the final order or place the motion off calendar.