Your business just got sued…now what?
Your business, the one you and your team have tirelessly built and maintained, has been sued. Now what? You’re not alone Over 99% of businesses in PA are classified as“small businesses”. Unfortunately, statistics also tell us that nearly 50% of these businesses are engaged in an active lawsuit in any given year.
You likely found out about the lawsuit when you received a Writ of Summons or a Complaint. If served with a Complaint, you likely have 20 days to respond. The Complaint outlines various allegations against your business and possibly other parties. Don’t panic if many of these statements are misrepresentations or blatantly false. Your lawyer will help you get your ‘side of the story’ out, in time.
The Complaint might also claim that the plaintiff (the person suing) has suffered personal injuries, that your company breached a contract, or that your company caused property damage. At the end of the Complaint, you will see a demand for some form of relief, typically monetary compensation.
Receiving a lawsuit can cause anxiety, fear, or, justifiably, anger. However, it is crucial to respond promptly and take appropriate action for the sake of your business. Follow the following steps:
Contact a Litigation Attorney, like James Beebe, and Your Insurance Company
When you learn that your business has been sued, there are several immediate steps to take, regardless of the validity of the allegations. The two most critical actions are:
- Contact your insurance company.
- If there is any possibility that your insurance policy does not cover the allegations, contact a lawyer immediately.
If your business holds an insurance policy that covers the type of claim made against it, your insurance company should hire an attorney to represent and defend your company. If the insurance does not cover the allegations, you need to quickly find an experienced litigation attorney, like James Beebe. The twenty-day time limit to respond is not flexible, and work needs to begin immediately on preparing your case.
Document Preservation
Importantly, you must preserve any evidence that might be relevant to the lawsuit. For your business, the most common examples are personnel files, emails, text messages, driving logs, etc. DO NOT delete any of these files or documents that relate, in any way, to the circumstances surrounding the case.
Do Not Ignore the Complaint or Try to Represent Your Company Yourself
Once a Complaint is filed, ignoring it and hoping the issue resolves on its own is not an option. There are strict deadlines and required formats for every filing in the litigation process. Failure to respond in a timely manner and in the correct format can seriously harm your ability to defend your company.
Take the Complaint Seriously
Even if the claims are frequently frivolous or blatantly untrue, you must take the lawsuit seriously. Defending lawsuits is an expense that many businesses consider the ‘cost of doing business’ in the modern world, and hiring competent and experienced legal counsel will many times prevent larger expenses in the future.
If you or your business are facing a lawsuit, or have any questions, contact James Beebe immediately to set up a meeting or call.