CLD Construction, Inc. v. City of San Ramon

In CLD Construction, Inc. v. City of San Ramon (2004) 120 Cal.App.4th 1141, a corporation attempted to file a lawsuit on its own behalf. The trial court determined a "complaint filed by a corporate party in propria persona is void" and granted a motion to strike the complaint without leave to amend. (Ibid.) The Court of Appeal reversed, stating: "Given the weight of nationwide authority and this state's increasing acceptance of the view that representation of the corporation by an attorney is not an absolute prerequisite to the court's fundamental power to hear or determine a case, we are persuaded it is more appropriate and just to treat a corporation's failure to be represented by an attorney as a defect that may be corrected, on such terms as are just in the sound discretion of the court." (Id. at p. 1149.) The appellate court also stated that in California, the courts have "relaxed the rule that a corporation must be represented in all legal proceedings by an attorney" and "complaints are to be liberally construed and disputes should be resolved on their merits." (Ibid.) The trial court, however, retained the authority to dismiss the action if the corporation did not retain counsel within a reasonable time. (Id. at p. 1150.)