BTL Industries, Inc. v. QuadCore Corp. d/b/a Layton Weight Loss Clinic; Beatriz Potenza; and Roberto Potenza

Summary

The United States District Court for the District of Utah denied Beatriz and Roberto Potenza’s motion to set aside QuadCore Corporation’s entry of default and to appear pro se on the corporation’s behalf. The court held that a corporation must be represented by licensed counsel and that the Potenzas, as non-attorneys, could not contest the default or argue for QuadCore; the court also denied their request for a thirty-day stay to obtain counsel.

Holdings

1. A corporation must be represented by licensed counsel in federal court; non-attorney corporate officers may not appear pro se for the corporation or move to set aside the corporation's default on its behalf.
2. A stay to secure counsel was unwarranted where the Potenzas had nearly four months to obtain counsel, had known for at least six months that QuadCore could not appear pro se, and no attorney had appeared.

Questions Presented

1. Whether non-attorney corporate officers may move to set aside a corporation's entry of default or otherwise argue on the corporation's behalf in federal court.
2. Whether the court should grant a thirty-day stay to allow the corporation to secure counsel.

Disposition

other