Dismissal of Pro Se Claim Filed by Entity is Not a Judgment on the Merits – Res Judicata

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Prestige Design and Build, LLC v. James and EJ Properties, LLC, [Ms. SC-2024-0667, Jan. 10, 2025] __ So. 3d __ (Ala. 2025). The Court (Stewart, J.; Parker, C.J., and Wise, Sellers, and Cook, JJ., concur) reverses the Montgomery Circuit Court’s judgment dismissing with prejudice an action filed by Prestige Design and Build, LLC’s (“Prestige”) against Joseph James and EJ Properties, LLC (“the defendants”).

Prestige had filed an earlier action on the same cause of action against the defendants. Prestige’s claims were dismissed “based on the fact that Prestige, a limited-liability company, was not represented by licensed counsel, as required by Alabama law. See Progress Indus., Inc. v. Wilson, 52 So. 3d 500, 508 (Ala. 2010) (stating that a corporate entity may appear in court only through a licensed attorney).” Ms. *5. The Court “recognize(s) that a complaint filed by a nonattorney on behalf of a legal entity is a “nullity.” Ex parte Ghafary, 738 So. 2d 778, 780-81 (Ala. 1998). Thus, it does not appear from the record that the merits of Prestige’s claims in the first action were ever properly before the circuit court. Accordingly, the record does not support dismissal of the second action on res judicata grounds, and we, therefore, reverse the judgment dismissing the second action with prejudice and remand the case for further proceedings consistent with this opinion.” Ms. **5-6. The Court also notes that “the dismissal order in the first action was not a final judgment because the first action remains pending on the defendants’ counterclaim.” Ms. *6, n. 4.

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