Receiving notice that your business is being sued can be a stressful and overwhelming experience. However, how you respond in the first few days and weeks can significantly impact the outcome of the lawsuit. This guide will walk you through the essential steps to take if your business is sued, ensuring that you handle the situation effectively and minimize potential damage.
Stay Calm and Assess the Situation
The first and most important thing to do when you find out your business is being sued is to stay calm. It’s natural to feel anxious or even angry, but keeping a level head will help you respond appropriately.
Review the Lawsuit Documents
- Complaint: The lawsuit will typically begin with a complaint, which is a document filed by the plaintiff (the person or entity suing you). The complaint outlines the allegations against your business and the legal basis for the lawsuit.
- Summons: Along with the complaint, you’ll receive a summons, which is a legal document informing you that you are being sued and providing a deadline by which you must respond.
Carefully review these documents to understand the nature of the lawsuit, who is suing you, and what they are seeking. Make note of any deadlines, as missing these could result in a default judgment against your business.
Contact an Attorney
One of the first steps you should take after being sued is to contact an attorney who specializes in business litigation. Even if you think the lawsuit is frivolous or believe you can handle it on your own, legal representation is crucial.
