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Committee rejects bill allowing LLC owners to represent themselves in eviction cases
Summary
The House Judiciary Committee defeated Senate Bill 6-29 after the Arkansas Bar Association and others warned the change would violate long-standing rules that only attorneys may represent entities in court and could invite constitutional challenges.
The House Judiciary Committee voted down Senate Bill 6-29, which would have allowed an officer, member or manager of a closely held corporation or limited liability company to represent the entity in eviction proceedings.
Senator Ronald Caldwell, who presented the bill, said the measure sought to reduce eviction costs and delay for property owners who currently must hire counsel after court decisions in some counties required formal court actions instead of summary eviction procedures. "Due to a court case in White County a few months back, now we have to use that process as a civil matter and go to court," Caldwell said, adding that the cost to evict had increased from roughly $75 to about $2,200 in his experience.
The Arkansas Bar Association strongly opposed the bill. Aaron Squires, speaking for the association, said Arkansas law and the state Supreme Court’s rule-making authority have traditionally barred corporations from self-representation in court. "Allowing a non-attorney to appear and ... file pleadings creates all kinds of potential problems for the administration of justice," Squires said, warning of sanctions, liability to the corporation and constitutional questions under Amendment 28.
Committee members questioned how narrow exceptions for small claims and in-house counsel apply; witnesses noted that a corporation may be represented by in-house counsel but that allowing company officers to appear in circuit or district court would be novel and likely invite litigation. Representative Tosh asked whether the bill would let a member of an LLC seek eviction for multiple properties held in the LLC; witnesses said the bill would permit that, which lawmakers flagged as a concerning expansion.
After discussion the committee took a motion to pass on the table; the transcript records the outcome as "the noes have it. The bill is failed." Several lawmakers noted the risk of constitutional challenge and the long-standing practice delegating rule-making about the practice of law to the Arkansas Supreme Court.
Why it matters: Supporters framed the bill as a cost-saving measure for small property owners structured as LLCs; opponents said it would undermine legal protections and the administration of justice by allowing non-lawyers to perform attorney functions in court.
What happened next: The bill failed in committee and will not advance from this hearing.
Speakers quoted in this report are drawn from committee testimony.
