Kumaran v. ADM Investor Services, Inc.

Background

Samantha Siva Kumaran brought this action against ADM Investor Services, Inc. She proceeded without a lawyer and paid the fees required to start the case. The complaint asserted claims for Kumaran, “other similarly situated Customers 1-100,” “other similarly situated CTA’s 1-100,” and Nefertiti Risk Capital Management, LLC (NRCM). Kumaran sought to proceed as a class action and also asserted claims for NRCM. The opinion says that Kumaran described NRCM as both a sole proprietorship and a limited liability company, and described herself as NRCM’s legal successor and assignee.

Court’s analysis

The court relied on 28 U.S.C. § 1654, which permits a person to represent himself or herself or to appear through a licensed attorney. It held that a nonlawyer proceeding without a lawyer cannot represent other individuals or serve as a class representative. The court also explained that a limited liability company is a separate legal entity and cannot appear in federal court without a licensed attorney, even when it has only one owner. In addition, a person proceeding without a lawyer cannot assert claims that a limited liability company assigned to that person.

Ruling

The court denied Kumaran’s request for the action to proceed as a class action. It dismissed without prejudice any claims Kumaran asserted on behalf of anyone other than herself, any claims asserted on behalf of NRCM, and any claims assigned to her by NRCM. The court dismissed without prejudice the claims of all plaintiffs except Kumaran and directed the Clerk of Court to terminate all plaintiffs except Kumaran. The Clerk was also directed to mail Kumaran a copy of the order and an information package. The order did not decide the underlying claims against ADM Investor Services, Inc.