Leads Engineering Solutions v. Capstone Turbine CA2/2

FACTS AND PROCEDURAL BACKGROUND

Plaintiff Leads Engineering Solutions, Inc. (plaintiff) is a California corporation. In its operative complaint filed in July 2011, plaintiff sued defendant Capstone Turbine Corporation (Capstone) and others for breach of contract, common counts, negligence and fraud. At some point in 2013, plaintiff’s status as a California corporation was suspended. In response to Capstone’s ex parte motion raising this deficiency, the trial court issued an order on October 1, 2013, continuing all pending matters to give plaintiff more than three months to cure this deficiency by obtaining a certificate of revival. Capstone renewed its motion to dismiss, and the motion was heard on February 10, 2014—more than four months after the trial court’s original order. Plaintiff’s status was still suspended at that time. The trial court (1) refused to grant a further continuance in light of plaintiff’s failure to submit its application for revival until December 2013, and (2) dismissed the action. Plaintiff timely appeals.

DISCUSSION

A corporation that is suspended may not prosecute or defend a lawsuit. (Corp. Code, § 2205, subd. (c) [noting that “the corporate powers,…