Mitchell v. PMC Funding 2021 LLC

UNITED STATES DISTRICT COURT
SOUTHERN DISTRICT OF TEXAS
GALVESTON DIVISION
ANDREW J MITCHELL, 	§
§
§
§
§
§
§
§
§
Plaintiff,
V. 	CIVIL ACTION NO. 3:26-cv-00099
PMC FUNDING 2021 LLC, et al.,
Defendants.
MEMORANDUM AND RECOMMENDATION
This case has been referred to me for all pretrial purposes. See Dkt. 10. I am
sua sponte issuing this memorandum and recommendation to suggest that the
court order the conditional dismissal of this lawsuit without prejudice unless
Plaintiff Andrew Mitchell appears through licensed counsel within 30 days from
the date this memorandum and recommendation is adopted.
On March 15, 2026, Mitchell, an incarcerated person proceeding pro se,
instituted this lawsuit against Defendants. Mitchell was a licensed public adjuster.
Mitchell 	provided 	his 	public 	adjusting 	services 	through 	Mitchell 	Adjusting
International LLC (“MAI”), a Texas limited liability company. At all times, Mitchell
has been the sole member of MAI. Mitchell claims that Defendant PMC Funding
2021 LLC “wrongfully seized and continues to collect” on the accounts receivable
of a factoring agreement between PMC and MAI. Dkt. 1 at 1. In addition to an
emergency request for temporary restraining order, Mitchell asserts claims for
breach 	of 	contract, 	fraud 	and 	fraudulent 	misrepresentation, 	economic
duress/voidance of settlement sheet, conversion, unjust enrichment, declaratory
judgment, and unenforceability of contractual jury trial waiver. Mitchell purports
to bring this lawsuit “as the party who executed and was directly bound by the
factoring agreement.” Id. Mitchell cannot do this.
United States District Court
Southern District of Texas
ENTERED
April 30, 2026
Nathan Ochsner, Clerk
Case 3:26-cv-00099 Document 22 Filed 04/30/26 in TXSD Page 1 of 3

2
“In all courts of the United States the parties may plead and conduct their
own cases personally or by counsel as, by the rules of such courts, respectively, are
permitted to manage and conduct causes therein.” 28 U.S.C. § 1654. The right to
conduct one’s own cases personally is limited to one’s own interests. “It has been
the law for the better part of two centuries . . . that a corporation may appear in the
federal courts only through licensed counsel.” Rowland v. Cal. Men’s Colony, Unit
II Men’s Advisory Council, 506 U.S. 194, 201–02 (1993). This rule applies to all
“[a]rtificial business entities—such as limited liability companies, corporations,
and partnerships.” Alt. Materials, LLC v. TCH Constr. Grp., Inc., 339 F.R.D. 322,
324 (N.D. Fla. 2021).
The Loan Authorization and Agreement that Mitchell attaches to the
complaint shows that MAI, not Mitchell, was the borrower. See Dkt. 5 at 5, 19. The
Purchase Addendum that attached to the complaint shows that the agreement was
between PMC and MAI. See id. at 10. The First Party Claims Non-Recourse Sale
and Assignment Agreement attached to the complaint is likewise between PMC
and MAI. See id. at 53. The claims in this case belong to MAI, not Mitchell. Mitchell
cannot prosecute MAI’s claims himself. See, e.g., Robinson v. Ashland Inc., No.
1:24-CV-97, 2024 WL 5158429, at *8 (E.D. Tex. Dec. 18, 2024) (collecting cases
and holding that “Plaintiffs, even as sole owners of their LLC, lack standing to
assert claims individually where the cause of action belongs to the company.”).
“A district court may dismiss a claim on its own motion as long as the
procedure employed is fair.” Davoodi v. Austin Indep. Sch. Dist., 755 F.3d 307, 310
(5th Cir. 2014) (cleaned up). Fairness “requires both notice of the court’s intention
and an opportunity to respond.” Id. (quotation omitted). Here, Mitchell has both
the opportunity to object to this memorandum and recommendation and, in the
event it is adopted, 30 days to appear through counsel before this action is
dismissed without prejudice. That is fair.
Case 3:26-cv-00099 Document 22 Filed 04/30/26 in TXSD Page 2 of 3

3
CONCLUSION
For the reasons discussed above, I recommend that the court order the
conditional dismissal of this lawsuit without prejudice unless Mitchell appears
through licensed counsel within 30 days from the date this memorandum and
recommendation is adopted.
The 	parties 	have 	14 	days 	from 	service 	of 	this 	Memorandum 	and
Recommendation to file written objections. See 28 U.S.C. § 636(b)(1)(C); Fed. R.
Civ. P. 72(b)(2). Failure to file timely objections will preclude appellate review of
factual findings and legal conclusions, except for plain error.
SIGNED this ___ day of April 2026.
______________________________
ANDREW M. EDISON
UNITED STATES MAGISTRATE JUDGE
Case 3:26-cv-00099 Document 22 Filed 04/30/26 in TXSD Page 3 of 3