Colorado Supreme Court building in Denver, CO. Credit: Michael Rosebrock/Shutterstock.com State Supreme Court Determines Venue Based on Residence of LLC, Not of Members
"So, while the citizenship of an LLC's members is relevant to determining if a federal court has the authority to act in a particular case, that information is not particularly relevant to determining under C.R.C.P. 98 if venue is improper in a particular county or if venue is convenient when one of the parties is an LLC," stated Justice Maria Berkenkotter.
January 10, 2023 at 05:03 PM
4 minute read
In an issue of first impression, the Colorado Supreme Court held that, for venue purposes, the residence of a limited liability company is determined based on the location of the LLC, not the residences of its members, and makes the rule to show cause absolute.
In the underlying case, Nelson v. Encompass PAHS Rehabilitation Hospital, Floyd Nelson alleged he sustained injuries from a fall at a rehabilitation hospital owned by Encompass, according to the opinion. Nelson asserted claims including negligence, medical negligence, and negligent hiring, supervision, retention, and training. Despite the fact that Nelson is a resident of Arapahoe County, the Encompass LLC is located in Arapahoe County, and the alleged torts took place in Arapahoe County, the action was brought in Boulder County.
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