A Suspended Corporation Lacks Capacity to Take Any Action

A California corporations rights and privileges are suspended when it fails to pay any tax, penalty or interest due and payable to the California Franchise Tax Board. Here, judgment creditor (a suspended corporation) executed an assignment of judgment. Trial court refused to honor the assignment. Court of appeals affirmed: suspended corporation did not have power to assign its judgment.
Contributor
Robin Mashal
Los Angeles, California
Commercial Litigation
(310) 286-2000

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I am a litigation lawyer, licensed to practice law in the State of California. You can reach me by phone at (310) 286-2000.