Can a Business Owner Represent Their Own Business in Pennsylvania Civil Litigation?

In Pennsylvania, the general rule is that corporations and other business entities, such as LLCs, partnerships, and associations, must be represented by a licensed attorney in court. This is because these entities are considered separate legal “persons” from their owners.

There are exceptions to this rule, typically for magisterial district court, or in some very limited circumstances (often involving consent agreements or stipulations on non-complex matters). However, these exceptions are very limited.

Rules Addressing This Topic

Pennsylvania Rule of Civil Procedure 2002 states that a corporation or similar entity shall be represented by an attorney. Case law further clarifies and reinforces this requirement.

Is it Advisable for the Owner to Represent the Company?

Generally, it is not advisable for a business owner to represent their company in civil litigation, even if permissible. Here's why:

• Lack of Legal Expertise: Litigation is complex, involving rules of evidence, procedure, and substantive law. A non-attorney business owner likely lacks the necessary expertise to navigate these complexities effectively.

  
  

• Practicality:  Non-attorneys quickly realize that legal documents filed with the courts must be in a certain format and contain certain required language.  Litigation in every court and county is governed by different local rules that make it difficult to know all of these formatting “rules”.  Filing your documents with the court can also be difficult, especially if you’re trying to file online.  Don’t expect help from court personnel – they are not permitted to give you legal advice or tell you how to comply with the procedural rules. These formatting and filing challenges are a practical barrier to representing your own business.

  
  

• Emotional Involvement: Business owners are often emotionally invested in their companies, which can cloud their judgment and make it difficult to make objective decisions in litigation.

  
  

• Time Commitment: Litigation can be extremely time-consuming, diverting the owner's attention from running the business.

  
  

• Potential Liability: If the owner makes mistakes due to lack of legal knowledge, the company could face adverse judgments or sanctions.

  
  

• Credibility: Courts generally afford more weight to the arguments and presentations of licensed attorneys.

Best Practices for Representing a Business in Civil Litigation

1. Hire Experienced Counsel: The most important best practice is to retain an experienced Pennsylvania commercial litigation attorney. Look for someone with a proven track record of success in similar cases, such as the experienced litigation attorneys at Fiffik Law Group.

   
   

2. Clearly Define the Scope of Representation: Establish a clear understanding with your attorney regarding the scope of their representation, including the specific issues they will handle and the anticipated costs.

   
   

3. Communicate Effectively: Maintain open and frequent communication with your attorney. Provide them with all relevant information and documents and promptly respond to their requests.

   
   

4. Participate in the Process: While your attorney will handle the legal aspects of the case, you should remain actively involved in the process. Attend meetings, review documents, and provide input on strategy.

   
   

5. Consider Alternative Dispute Resolution (ADR): Explore options such as mediation or arbitration to resolve the dispute outside of court. ADR can often be more cost-effective and time-efficient than litigation.

   
   

6. Maintain Accurate Records: Keep detailed records of all communications, documents, and expenses related to the litigation.

We Have the Experience to Help Your Business

Our litigation clients include individuals, partnerships, privately owned corporations, and nonprofits. We try cases in courts across Pennsylvania. Although our trial work sets us apart from other firms, we often advocate and negotiate behind the scenes to obtain a positive resolution before a suit is filed. We do not limit our advocacy to courts: We represent clients in arbitrations, mediations, administrative proceedings, and private investigatory and review proceedings.