What to Do if Your Business Is Sued

It can be frustrating and challenging if your business is sued. Companies can be sued by clients, employees, clients/customers, suppliers/vendors, competitors, shareholders, and other parties. Whether the lawsuit is related to an employment issue, contract dispute, or another dispute, it is vital that you handle the situation strategically so you can protect your business and minimize damages. This article shares some best practices to follow if your business is sued.

Disclaimer: This article is for informational purposes only. The following information does not replace legal counsel. If your business is sued, we urge you to speak to a qualified business attorney before taking any action.

Steps to Take if Your Business Is Sued

If a party files a lawsuit against your business, you will likely feel stressed and frustrated. While this is normal, it is vital that you take swift action to protect your business and mitigate potential damages. Below are some best practices to follow if your business gets sued;

1. Remain Calm

If your business is sued, it is crucial that you stay calm and avoid panicking. Reacting emotionally could lead to hasty decisions that might not be in your business’s best interests.

2. Review the Petition or Complaint

If your business is sued, you will receive a summons with a complaint or petition attached. Take time to review the petition or complaint to understand the plaintiff’s claims and demands, or in other words, what the plaintiff thinks your business did wrong and what compensation or other remedies they are seeking, before taking any action.

The complaint or petition may contain legal jargon and many paragraphs, making it challenging for you to interpret it by yourself. In such a case, your business may highly benefit from the wisdom and guidance of a skilled business attorney who can help you understand the plaintiff’s claims and demands.

3. Contact a Business Litigation Attorney

Whether or not you think you need help reviewing the petition or complaint, it is crucial that you contact a business litigation attorney. Contact an attorney who specializes in the area relevant to your case as soon as possible. For example, if you are being accused of breach of contract, find an attorney with experience handling breach of contract cases. Contrary to what you might think, consulting an attorney is not an admission of guilt. Instead, it is necessary to protect your business’s best interests. An experienced business litigation attorney can provide legal guidance, help you understand your rights and obligations, help you respond to the lawsuit appropriately, and represent your rights throughout the legal process.

4. Collect and Preserve Evidence

A vital step when faced with a lawsuit is to gather and preserve evidence related to the lawsuit, including financial records, employment contracts, correspondence, and other pertinent materials. Gathering and preserving evidence is critical in building a strong defense.

5. Talk to Your Insurance Company

If you have business or liability insurance, notify your insurance company of the lawsuit as soon as possible. Your insurance company may cover all or some of the legal costs associated with the lawsuit. Provide your insurance company with all the necessary information and cooperate with their investigation.

Contact Us for Legal Help

Is your business facing a lawsuit? Contact our experienced business litigation attorneys at SAC Attorneys LLP to schedule a consultation and discuss your case. We can help protect your business’s interests and achieve the best possible outcome.