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If I need to defend against a civil suit, as a business

owner, but the company doesn't...
If I need to defend against a civil suit, as a business owner, but the company doesn't have enough money for legal fees to hire an attorney to defend against the suit, what can the business do? The law requires an attorney for suits over $5K, in Maryland, but doesn't specify how the business is supposed to obtain an attorney with no budget for an attorney. If we had money we may as well try and settle the claim without hiring an attorney. 50/50.
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Answered in 1 hour by:
3/18/2018
WiseOwl58
WiseOwl58, Attorney
Category: Business Law
Satisfied Customers: 4,564
Experience: Senior Associate at White & Case LLP
Verified

Under Maryland law, if the company doesn't have sufficient funds, the officer of the company can come in and defend the company without a lawyer. I suggest you appear for the court date and make your arguments on behalf of the company and you should be just fine.

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Law Educator, Esq.
Category: Business Law
Satisfied Customers: 125,998
Experience: All corporate law, including non-profits and charitable fraternal organizations.
Verified

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

I am a DIFFERENT CONTRIBUTOR as your previous contributor provided you incorrect information and then opted out.

It is not true that "Under Maryland law, if the company does not have sufficient funds, the officer of the company can come in and defend the company without a lawyer." He did not provide any such law because there is no such law.

If you cannot afford to defend a suit, you cannot afford to pay a judgment or afford to pay debts as they come due and that means the business is bankrupt and that means you do nothing and let them take a default judgment and then apply for a receiver, since the company does not have the money or assets to pay the judgment.

A corporation is a separate legal person, you cannot represent another person without a license to practice law, so if you try to represent the company as suggested, you would be committing the unauthorized practice of law and that could be prosecuted as a criminal offense.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

Law Educator, Esq.
Category: Business Law
Satisfied Customers: 125,998
Experience: All corporate law, including non-profits and charitable fraternal organizations.
Verified
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