When Your Business Faces A Lawsuit

Many of our blogs discuss the various ways you can mitigate the potential for a lawsuit. As a business owner you should accept and understand that the key is to mitigate instead of eliminate. Regardless of your precautions, there is always the possibility that someone will file a lawsuit against your business. Some of the most common sources of this center around the following: 

  • Contractual breaches 
  • When someone gets injured 
  • A claim filed by an employee (e.g., harassment, discrimination, retaliation)  

What Happens After I Receive the Lawsuit Documentation?

Though this may not need to be said, we are going to do so anyway: contact a business law attorney such as the Cueto Law Group. Resist the urge to contact the plaintiff (the person suing) even if you think there has been a mistake or a misunderstanding. If there is, your attorney will handle it appropriately. By reaching out to the plaintiff without legal representation, you may be making your situation worse. Additionally, this also applies to people outside of the case. If a third-party vendor is suing you, don’t discuss the case with your employees. Commit to channeling everything through your attorney and listen to the advice they give. 

…With One Exception

After you meet with your attorney, you should notify your insurance company of the lawsuit. If, for instance, you have general liability coverage, it may cover the cost associated with the case. This would include your attorney and any settlement you have to pay. Knowing that you have coverage can offer a significant amount of peace of mind. Still, you need to confirm through your provider that your policy protects you against this specific circumstance. 

Two Things You Can Expect to Happen

Regardless of your circumstances, you can assume that the following two things will happen:

  • You will have to preserve documentation because your attorney will need it. 
  • Your attorney will respond to the complaint. 

Your attorney will discuss the response with you, but they will draft it. (There are timelines associated with how quickly you need to respond, but this varies by state.) In it, your attorney will state whether you admit to or deny the allegations against you. If you deny them, your attorney will include why and add counter or cross-claims against the plaintiff or anyone else involved. Whether you want to settle or pursue litigation depends on your situation and the advice of legal counsel. 

Contact the Cueto Law Group

The vast majority of lawsuits are resolved before they go to court. Our attorneys will pursue the course of action that serves you and your interests. Our skilled and experienced professionals handle civil complaints, commercial litigation, contractual disputes, and international commercial disputes. Contact us today to schedule a consultation.