Shareholder Lawsuit Defense Strategies

Summary

The user is facing a civil unlimited lawsuit in California, filed by a shareholder against his company and himself. The allegations are of financial mismanagement, which the user claims are false and can be refuted with financial documentation and written communications. However, the user is unable to represent the company as a pro se defendant and is struggling to find affordable legal representation. The user has tried multiple avenues to find legal help, including legal aid societies, pro bono services, law schools, the California Bar Association, the Small Business Administration, and the California Department of Consumer Affairs, but has been unsuccessful. The case has entered into a default judgment due to missed deadlines for filing responses. The user is considering filing a motion to set aside the default judgment and is exploring the option of hiring a limited scope attorney.

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california civil unlimited lawsuit by a shareholder for derivative and direct claims against my company and myself respectively.
What specific allegations are being made against you and your company?
multiple false accusations
What evidence do you have to refute these accusations? In California, you can potentially sue for defamation if false statements are damaging your reputation.
i have sufficient financial documentation and written communications to support my defenses but I cannot represent the company as a pro se defendant, I need an attorney to represent the company while I can only defend against the direct claims personally.
What is the nature of the false accusations? In California, defamation involves making false statements that harm someone's reputation. It's divided into slander (spoken) and libel (written).
generic and broad accusations of financial mismanagement that are easily verifiably false. But I am not allowed to present my proof.
What is preventing you from presenting your proof? In California, evidence is crucial in defamation cases to prove the statements were false.
i am legally barred from responding or filing an answer on behalf of the corporation as that would constitute illegal practice of the law without being a licensed attorney
What steps have you taken so far to find a licensed attorney to represent your company in this matter?

In California, only a licensed attorney can represent a corporation in court.
i have discussed the case with multiple attorneys, all but one were unwilling to take the case due to their schedules and other reasons. One firm was willing to take the case but required a significant retainer which neither the corporation nor I could afford.
Have you considered reaching out to legal aid societies or pro bono services in California? They might be able to assist you or refer you to affordable legal representation.
I have tried reaching out to both legal aid groups and pro bono services at the local law library but the responses have always been the same, that my case does not qualify for such options.
Have you considered reaching out to law schools in California? They often have legal clinics that provide free or low-cost legal services.
i have engaged the groups offering low-cost and free legal services, but have been turned down each time. I have reached out to local law schools but have been told the same response each time as well, that they cannot provide such services to a for-profit corporation.
Have you considered reaching out to the California Bar Association for a referral to an attorney who might be able to take your case at a lower cost?
i have tried that as well, and have not been able to find an attorney interested in taking my case at all, regardless of cost.
Have you considered reaching out to the Small Business Administration (SBA) or local Chamber of Commerce for legal resources or referrals? They often have connections with legal professionals who may be able to assist.
i have done that as well
What is the current status of the lawsuit? Are there any upcoming court dates or deadlines?
i have missed deadlines for filing responses because I am not allowed to respond to the claims against the corporation. This has resulted in my case being entered into a default judgment with no ability for me to have an opportunity to appear in court whatsoever.
Have you considered filing a motion to set aside the default judgment? In California, you may be able to do this under certain circumstances, such as mistake, inadvertence, surprise, or excusable neglect.
i am not allowed to file any sort of motion on behalf of the corporation. The clerk refused to accept any filing that wasn’t signed by an attorney.
Have you considered hiring a limited scope attorney who can assist you in filing the necessary motions?

In California:
- Limited scope representation allows an attorney to assist on part of the case.
- It can be a cost-effective way to get legal help.
i have tried and asked for limited scope representation with every attorney I spoke with. They were not interested or not available to offer even that.
I'm sorry to hear about your situation. Have you considered reaching out to the California Lawyers for the Arts? They might be able to provide you with affordable legal assistance.
yes, they were not able to help either.
Have you tried contacting the California Department of Consumer Affairs? They might be able to provide some guidance or resources.
yes, they referred me back to the legal aid options.
What is the name of the court where the lawsuit has been filed?
santa Clara county superior court
The Santa Clara County Superior Court is located at * N 1st St, San Jose, CA *. You can contact them at (*) *-*.
i have contacted them but they have only confirmed the rules and laws that prevent me from participating in defense.
Have you considered filing a complaint with the State Bar of California regarding your difficulty in finding representation?
yes they provided me with links to generic forms to complete. But that doesn’t stop the case from proceeding.
What is the current status of the lawsuit after the default judgment was entered?
the plaintiff’s attorney attended a prove up hearing and has now scheduled another hearing for their motion asking the court to approve involuntary dissolution
What is the date of the upcoming hearing for the motion of involuntary dissolution?
one week from today roughly
What is the name of the plaintiff's attorney and their law firm?
i am not sure off hand
Could you please provide the name of the plaintiff's attorney and their law firm when you have the information? This could be helpful in understanding the situation better.
its a private firm with active bar licenses, why do you need their info?
Knowing the plaintiff's attorney or firm can help in understanding their approach or reputation, which might influence your strategy.
their approach was always to force a settlement knowing they could exploit my predicament and proceed with false accusations unopposedx
What is the name of the plaintiff's attorney and their law firm?
i don’t have the paperwork in front of me I’m sorry
That's okay. When you have the paperwork, could you please provide the name of the plaintiff's attorney and their law firm?
ok
What is the name of your company and what type of business is it?