Nelson v. Encompass PAHS Rehabilitation Hospital, LLC.

2023 CO 1. No. 22SA195. Civil Procedure.

January 9, 2023

In this original proceeding involving a case of first impression, the Supreme Court considered whether the trial court erred in looking to the residences of the members of the limited liability company (LLC) in determining that venue was proper and denying the LLC’s motion to change venue. The Court rejected respondent’s argument—which is based on federal diversity jurisdiction cases—that the trial court may properly look to the residences of the LLC’s members in deciding where venue lies. The Court concluded that an LLC’s residence, for venue purposes under CRCP 98, is determined based on the residence of the LLC, not the residences of its members. Accordingly, the Court vacated the trial court’s order denying the motion to change venue and made the rule to show cause absolute.