McMichael v. Encompass PAHS Rehabilitation Hospital, LLC.

2023 CO 2. No. 22SA264. Civil Procedure.

January 9, 2023

In this original proceeding, the Supreme Court concluded that a trial court did not err in (1) vacating its default judgment against a limited liability company (LLC) after finding excusable neglect under CRCP 60(b); and (2) granting the LLC’s motion to change venue. The Court determined that the trial court did not abuse its discretion by choosing to hear the matter on the merits. It further concluded, applying the holding announced it its companion case, Nelson v. Encompass PAHS Rehabilitation Hospital, LLC, 2023 CO 1, that an LLC’s residence, for venue purposes, is determined based on the residence of the LLC, not the residences of its members. Accordingly, the Court discharged the rule to show cause.