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My business has been sued. What do I do?

On Behalf of | Apr 5, 2023 | Business Disputes

Business disputes are sometimes unavoidable. You may employ many strategies to prevent business disputes, such as having solid contracts in place, valuing good communication and making a good faith effort to resolve problems as they arise.

However, there may come a time when no matter how hard you try, you cannot resolve a dispute and you find your business facing a lawsuit. This can be a stressful experience since a lawsuit could hurt both your business’s bottom line and reputation.

Stay calm and think rationally

You may feel a range of emotions after learning about the lawsuit, including anger, confusion and worry. This is natural, and you have a right to be upset, especially if you feel the lawsuit has no merit.

If this is your first time being sued, you are likely to have many questions about next steps and how to handle a business lawsuit.

Contact your insurance

The first thing you should do is contact your insurance provider and tell them about the lawsuit. You probably have insurance policies in place to protect you in the event of a lawsuit, and if you don’t, you should.

Make copies of the documents you received, as your insurance company will likely ask you to forward them a copy.

Pay attention to deadlines

Thoroughly review the documents you received. The main document is called a complaint and you will need to file an answer to that complaint within a certain deadline. Your deadline to file the answer should be included in the documents.

It is vital that you file your answer to the complaint within the deadline. If you do not, you risk losing the lawsuit simply because you did not respond.

Seek professional advice

Consult with a business attorney before you file your answer. An attorney can review the complaint and file the answer on your behalf.

Many business lawsuits ae resolved before they get to court. An attorney can advise you on your chances of success and help you develop strategies to resolve the dispute.