Despite The Fact Its Corporate Powers Were Suspended When The Appeal Was Filed, So Long As Corporation Was Reinstated, Plaintiff Corporation Was Permitted To Continue With Its Appeal.

Before trial, defendants learned that plaintiff corporation’s corporate powers had been suspended by the State of California due to nonpayment of taxes and moved for the trial court to preclude plaintiff from offering any evidence at trial. The court denied the motion contingent on the corporation’s reviving its corporate powers. Later, the court entered judgment in favor of the defendants, and plaintiff filed a notice of appeal. Defendants moved to dismiss plaintiff’s appeal because its corporate powers were still suspended, which motions the appellate court denied, and defendants filed petitions for review by the California Supreme Court. At some point, the plaintiff secured a reinstatement of its corporate status. The Supreme Court followed its earlier opinions from the 1970s which held that revival of corporate powers validates an earlier notice of appeal, which holding permitted plaintiff to continue with its appeal. Bourhis v. Lord  (Cal. Sup. Ct.; March 4, 2013) (Case No.’s S199887, S199889).