Home » State Supreme Court Determines Venue Based on Residence of LLC, Not of Members

State Supreme Court Determines Venue Based on Residence of LLC, Not of Members

by John Hensley


In an issue of first impression, the Colorado Supreme Court held that, for venue purposes, the residence of a limited liability company is determined based on the location of the LLC, not the residences of its members, and makes the rule to show cause absolute.

In the underlying case, Nelson v. Encompass PAHS Rehabilitation Hospital, Floyd Nelson alleged he sustained injuries from a fall at a rehabilitation hospital owned by Encompass, according to the opinion. Nelson asserted claims including negligence, medical negligence, and negligent hiring, supervision, retention, and training. Despite the fact that Nelson is a resident of Arapahoe County, the Encompass LLC is located in Arapahoe County, and the alleged torts took place in Arapahoe County, the action was brought in Boulder County.



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