Devon Keith Webb v. UShip, GoDaddy, et al.

Summary

The United States District Court for the Eastern District of California grants Devon Keith Webb’s motion to proceed in forma pauperis but declines to serve the complaint. The court concludes that Webb lacks standing to assert claims belonging to ACSD Deliveries, LLC, is not the real party in interest, and cannot represent the LLC without licensed counsel. The court also finds the pleaded claims insufficiently stated but permits amendment within 30 days, either through counsel on behalf of the LLC or pro se on claims involving Webb’s own injuries.

Holdings

1. A member or owner of an LLC does not have standing to assert claims in his individual name for injuries allegedly suffered by the LLC, even if he is the LLC's owner or sole shareholder.
2. The entity that legally holds claims arising from injury to the LLC, rather than the individual member, is the real party in interest.
3. A nonlawyer individual may not represent an LLC in federal court pro se; the LLC must appear through licensed counsel.
4. The complaint failed to state plausible claims for business identity misappropriation, unfair competition under California Business and Professions Code section 17200, negligence, and intentional interference with prospective economic advantage.

Questions Presented

1. Whether Webb had Article III standing to assert injuries allegedly suffered by ACSD Deliveries, LLC.
2. Whether Webb was the real party in interest under Federal Rule of Civil Procedure 17(a).
3. Whether Webb could represent ACSD Deliveries, LLC without licensed counsel.
4. Whether the complaint stated plausible claims for business identity misappropriation, unfair competition under California Business and Professions Code section 17200, negligence, and intentional interference with prospective economic advantage.
5. Whether Webb should be granted leave to amend or obtain counsel before dismissal.

Disposition

other