As a business owner, one of your worst nightmares is being sued. Not only have you failed to meet your customer or supplier’s expectations as a goods or service provider, you’re also in hot water on a much larger scale. The success of the company you’ve built from the ground up is at the mercy of the law. Unfortunately, all businesses are at risk for being sued for a variety of different reasons, and it can happen at any time. However, if you know what to expect and what you should do when your business is sued, the experience will be slightly less turbulent.
Oftentimes, when someone takes steps towards filing a lawsuit against your business, you’ll first receive a demand letter. This document is not a lawsuit, but it will share an individual’s discontent with your business practices and it will request that you take action to resolve the issue at hand. In an ideal situation, you, along with your lawyer, will be able to make your case and show the individual that you weren’t in the wrong. At the very least you’ll be able to reach a settlement and possibly avoid being sued.
Unfortunately, not all issues can be resolved outside the courtroom. If you and the individual are unable to reach an agreement through a settlement, your business will be served with a lawsuit. This is known as service of process, and many business owners try to avoid it. However, this is usually not effective. The best course of action is to allow yourself to receive the formal complaint and work with your lawyer to defend the claim.
Once you receive the documents, the first thing you should do is contact your lawyer. Your attorney, such as the professionals at Crafts Law Firm, should have extensive experience in business litigation. In particular, your lawyer should have a history of defending corporate entities, individual officers, partners, employees, and third parties to be able to provide you with the best possible representation in your trial. Regardless of how ludicrous the claims may be, it’s imperative to respond immediately. Your hearing may be set in as little as three days after you’re served, and you’ll want to give your lawyer enough time to prepare and to provide you with the best defense.
After you’ve notified your lawyer that your business has been served and have given him or her all of the names, phone numbers and details of everyone involved, it’s time to call your insurance agent. Legal fees can be costly, and depending on the types of claims made against your business, you may be entitled to some help paying for your defense. When it comes to notifying your insurance company, it’s important to take action quickly. If you sit on the lawsuit and wait until the trial is underway, your insurance company isn’t under any obligation to help you with the associated costs.
There’s no doubt that getting served with a lawsuit is a stressful experience. And with tensions running high, it’s easy to forget what you should do when your business is sued. The most important thing to remember is to keep your cool, remain in close contact with your lawyer, and handle the situation as professionally as possible. After all, your business’ reputation and future success depends on it. If your company has been sued and you’re in search of a law firm with extensive experience in business litigation, call Crafts Law Firm at (949) 484-7400 or visit http://www.craftslawfirm.com.
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