Background
Marvin Brown and his company, Maverick Consulting Group, LLC, appealed a district court dismissal of their action against the Los Angeles Department of Water and Power and Pandora Consulting Associates, LLC. The suit alleged violations of federal civil rights statutes and antitrust laws. The district court dismissed the case because Maverick failed to comply with a court order to retain counsel within thirty days.
The court’s reasoning
The panel reviewed the dismissal for abuse of discretion. The court noted that corporations and unincorporated associations must appear through an attorney under Ninth Circuit precedent and local rules. Maverick failed to retain counsel, explain the failure, or seek an extension. Additionally, Brown conceded he lacked standing as a shareholder to redress injuries to the corporation. The court also found Brown forfeited any challenge to the dismissal of his federal claims by failing to address them in his opening brief.
What it means going forward
The decision reinforces the strict requirement that business entities must be represented by licensed counsel in federal litigation and clarifies that individual shareholders cannot typically assert corporate claims in their own name.