Parlier v. CAN-ADA Crushing – Gravel Co.

In Parlier v. CAN-ADA Crushing & Gravel Co.,[1] the supreme court held that limited liability companies must hire counsel for court litigation. In superior court, Parlier attempted to represent his co-defendants Parlier Investments, LLC, McHenry Detective Agency, LLC, and Shares #1 and #17 of Sockeye Salmon, Inc., on the grounds that he was the sole owner and member of the two LLC’s and that McHenry owns the stock certificates. Although Parlier is not an attorney, he argued that AS 22.20.040(a)(2), which requires corporations to appear by an attorney in court cases, did not apply to limited liability companies because limited liability companies are not corporations. The superior court entered a default judgment against Parlier and dismissed the counterclaims of his co-defendants. On petition for review, the supreme court noted that it has interpreted AS 0.08.210(a) to bar non-attorneys from representing another person in court, and agreed with recent cases from other jurisdictions requiring limited liability companies to hire counsel for representation. The supreme court granted the petition for review and affirmed the superior court’s order entering default and dismissing the counterclaims of the co-defendants, holding that limited liability companies must hire counsel for court litigation.

[1] 441 P.3d 422 (Alaska 2019).

Parlier v. CAN-ADA Crushing – Gravel Co.

In Parlier v. CAN-ADA Crushing & Gravel Co.,[1] the supreme court held that limited liability companies must hire counsel for court litigation. In superior court, Parlier attempted to represent his co-defendants Parlier Investments, LLC, McHenry Detective Agency, LLC, and Shares #1 and #17 of Sockeye Salmon, Inc., on the grounds that he was the sole owner and member of the two LLC’s and that McHenry owns the stock certificates. Although Parlier is not an attorney, he argued that AS 22.20.040(a)(2), which requires corporations to appear by an attorney in court cases, did not apply to limited liability companies because limited liability companies are not corporations. The superior court entered a default judgment against Parlier and dismissed the counterclaims of his co-defendants. On petition for review, the supreme court noted that it has interpreted AS 0.08.210(a) to bar non-attorneys from representing another person in court, and agreed with recent cases from other jurisdictions requiring limited liability companies to hire counsel for representation. The supreme court granted the petition for review and affirmed the superior court’s order entering default and dismissing the counterclaims of the co-defendants, holding that limited liability companies must hire counsel for court litigation.

[1] 441 P.3d 422 (Alaska 2019).