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Any day you get served with a lawsuit is not a good day for your business. You cannot ignore the lawsuit without suffering a judgment against your business, and you know that defending the lawsuit will involve an uncertain amount of time and money. However, by taking immediate action and an active role in the defense, you increase your chances of achieving your best possible resolution of the lawsuit.
Immediately Inform Your Lawyer
As soon as your business is served with a lawsuit, important deadlines are established regarding your right to defend against the lawsuit. If you do not take appropriate action within these deadlines, you can put your business at a disadvantage and potentially lose your right to defend against the lawsuit – even if the lawsuit has no merit. You must immediately notify your company’s lawyer about the lawsuit so that your lawyer can determine the important deadline dates.
Contact Your Company’s Insurance Agent
Insurance coverage for any lawsuit involving your business is a tremendous benefit in defraying the cost of defending against the lawsuit. Do not make the mistake of deciding for yourself that the insurance policies for your business do not cover the lawsuit. Make sure. If you do not notify your insurer in a timely manner, you may lose your right to any coverage, whether it is paying a claim or providing a legal defense. As soon as your business is served with the lawsuit, forward it to your insurance agent and insist that the agent submit it to the insurance company.
Gather Information That Is Under Your Control
Business lawsuits rarely come out of nowhere. You will most likely have had prior dealings with the person suing your business and a general awareness of the claim. Promptly investigate the lawsuit’s allegations by determining who in your business is a potential witness and what business documents may relate to the allegations. You should share this information with your lawyer as soon as possible in order to determine the best way to interview witnesses and preserve documentation.
Consider Trying to Resolve the Dispute by Alternate Means
A lawsuit is not the only means to resolve a dispute, even after the lawsuit has been filed. Arbitration, mediation, a neutral evaluator, and a settlement conference are various methods of alternative dispute resolution that can be used instead of, or in conjunction with, a lawsuit. Although the procedure differs for each alternative method, as a group they are less formal and generally less time consuming and expensive than a lawsuit. You should evaluate your options regarding such alternatives as soon as your business has been sued.
A Lawyer Can Help
The law surrounding defense against a business lawsuit can be complicated. Plus, the circumstances surrounding each case are unique. This article provides a brief, general introduction to the topic. For more detailed, specific information, please contact a business litigation lawyer.