When your business is sued, it’s crucial that you understand what to do. It can happen to anyone whether your business is relatively new or already established. The reasons for being sued can vary. In some cases, it’s a displeased customer, an angry employee, or even someone claiming personal injury on your property. There are all sorts of ways that it can happen to you when you least anticipate it, therefore knowing how to act ahead of time is in your best interest.
Here are some of the best tips for what to expect and do when your business is sued.
Anticipate Receiving Paperwork
If someone has threatened to sue you, you won’t know for sure if they’re bluffing until you receive their demand letter. They will spell out their demands and requested action to correct the wrongs you’ve been accused of.
A lot of people panic at the sight of this original letter. However, the demand letter does not actually indicate a lawsuit. You may be able to prove your innocence through a reply and stop a lawsuit before it even starts. Call your lawyer immediately and discuss how you should reply. They’ll be able to give you the best advice for how to proceed.
Anticipate a Summons
If you weren’t able to put a stop to the impending lawsuit, then you’ll receive a formal complaint and summons. This is an official declaration that you are being sued and how long you have to respond. This is usually delivered by a sheriff or process server.
It’s no use trying to avoid being served; you will eventually be served. The sooner you start the process, the sooner that you can take the appropriate action.
Go Over The Paperwork Carefully
You have a specific window of time to respond to the formal complaint. Usually, the amount of time falls within 30 days upon receipt of the letter. It’s crucial that you respond within the instructed time period.
It won’t look good for you or your business if you don’t take the complaint seriously. Read it over and understand exactly what you are being sued for. Lack of reply on your part will lead to the court giving a default judgment which won’t be in your favor.
Stay In Contact With Your Lawyer
You should stay in close contact with your lawyer. They will be able to guide you through the process and gather what you need to build your case.
Be sure that you give your lawyer all the information that you can. Your lawyer will be able to best serve you by knowing even the most confidential of details.
Call Your Insurance Company
In some cases, your insurance policy may be able to help cover some of the legal fees or awards settled against you. Be sure to call them as soon as possible, or your claim may be rejected.