unionstation.jpg

Limit Increased For Non-Attorney Representation of Closely Held Business Entities in Colorado Litigation

Jun 24, 2013

By Reed Morris

Colorado business owners should be aware that corporate entities including LLCs generally require attorney representation when the company is bringing or defending actions in court or before an administrative body. Recognizing the costs to small businesses in litigation, the Colorado General Assembly provided a narrow exception to this rule in 1991 allowing non-attorney officers of closely held businesses to represent their company in court without an attorney if the matter did not exceed $10,000 in controversy.

This spring, Governor John Hickenlooper signed House Bill 13-1052 into law [.pdf] increasing the limit for officer representation to $15,000 beginning on the bill’s effective date. The threshold of $15,000 is equal to the jurisdictional limit for matters that may be heard in Colorado county courts, allowing companies wishing to pursue such matters without legal counsel the ability to fully utilize the county court system. The county courts generally provide a more efficient and less onerous process compared to the district court. This is mainly accomplished though limiting pretrial litigation and discovery. If a matter is under $7,500, Colorado small claims courts provide businesses with an even more streamlined forum to seek judicial relief.

Closely held business entities are defined in Colo. Rev. Stat. §13-1-127(1)(a) as entities “with no more than three owners.” A non-attorney corporate officer may proceed in court or administrative hearing after providing satisfactory evidence of authority to appear on behalf of the closely held entity. 

Business owners considering representing their company in court should still consult an attorney relating to the law, procedures, and presentation of their case in court. Even though Colorado law allows non-attorney officers to represent their closely held company, this exception to the rule does not mean that standards of law and practice will be relaxed. Proceeding to court with or without an attorney is not a decision to be taken lightly. Limited and carefully defined attorney representation for your company may make business sense depending on the complexity and stakes of the case.

 

Mallon & Lonnquist, LLC, is a business and real estate law firm. Reed F. Morris is a Colorado business and real estate litigation attorney with Mallon & Lonnquist, based in Denver, Colorado. Reed regularly represents businesses and individuals in disputes from pre-filing through trial and can be reached at rmorris@mallon-lonnquist.com.  



Category: M&L Legal Posts

Category List


Tag List

CO Attorney Mentoring Program (1)
Colorado attorney mentor (1)
Skiing Gear (1)
Colorado Hispanic Bar Association (1)
Employment Law (1)
Colorado business disputes (1)
Data Breach Settlement (1)
subcontractor negotiations (2)
Landowners (1)
Real Estate (4)
Lease Negotiations (1)
Colorado Wrongful Death (1)
Phantom Stock (1)
Litigation (15)
Snowboard Gear (1)
Mergers & Acquisitions (5)
indemnifications (2)
attorney-client privilege (2)
Colorado Retail Leasing (1)
Cherry Creek Chamber of Commerce (1)
Business Contracts (2)
Colorado LLC (1)
Commercial Real Estate (2)
Wrongful Death Settlement (1)
Denver Broncos (1)
Colorado Spanish Legal Services (1)
Trade Secrets (6)
ABA (1)
Spanish Business Law (9)
Non-Solicitiation (1)
Colorado Construction (1)
Wills (1)
Taxes (2)
ABA Article (1)
Real Estate Law Firm (3)
Colorado Courts (2)
Our Courts Colorado (1)
Denver Business Law (1)
Business Services (2)
Spanish Legal Services (7)
courts (1)
American Bar Association (2)
St. Anthony, Minnesota (1)
News and Updates (2)
Research (1)
Leases (6)
Colorado Enforcement of Non-Compete (2)
Colorado Business (56)
Leasing Standard (1)
Certifiably Green Denver (1)
LLC Law (3)
Community (29)
Colorado Judicial Institute (1)
Finance Law (2)
Estate Planning (4)
Master Services Agreement (2)
Denver Sustainable Law Firm (1)
Denver arbitration (1)
Non-Compete (2)
Employment (4)
Colorado Real Estate (11)
Denver Colorado Business Attorney (9)
Construction Contracts (5)
Non-Disclosure (1)
Property Surveys (1)
Non-Solicitation (1)
Commercial Property (2)
Non-Compete, Colorado non-compete restrictions, enforcing non-compete, protecting Colorado business (1)
Colorado Lis Pendens (1)
Ethics (1)
Corporate Law (8)
cause for termination (1)
Resolving Business Disputes (1)
Panelist (1)
Colorado at-will employment (1)
(33)
Spanish Speaking Lawyers Committee (1)
Data Breach (2)
Legal Services (1)
Labor (3)
Denver Real Estate (1)
Enforcing Non-Solicitation Agreement (1)
Mechanic's Liens (1)
CO Business Non-Solicitation Restrictions (1)
Colorado Foundation for Water Education (1)
Alternative Dispute Resolution (5)
Estate (4)
Stock Options (1)
Non-Competition Agreements (12)
Overtime Wages (2)
Colorado Employment (20)
Tax (2)
Business (1)
Estate Protection (2)
cyber security (3)
Co-Ownership Agreement (1)
Arbitration (2)
Denver Business Journal (2)
Reed Morris (1)
CO Ski and Snowboard Gear Recall (1)
Construction (6)
Construction Bond Claims (2)
Credit Card Data (1)
County Court (1)
Helmet Recall (1)
Incentive Plans (1)
Cell Tower Leases (1)

Archive