Disclaimer: Everything that’s presented below is meant to give you information on the things that you have to consider if you’re going through business litigation, and shouldn’t replace standard legal advice. For you to get through a lawsuit filed against your business, you should start consulting a licensed attorney who can help you with your predicament as soon as possible.
When you first started your own business, you might have been fully aware already of all the risks associated with engaging in an endeavor like that. However, one risk that can cost you a considerable amount of time and money once you’re confronted with it is when someone decides to file a lawsuit against your business. Regardless of the complainant’s exact reason or motivation, you’d want to read on below and take note of some of the things that you have to consider if you’re going through business litigation so you can deal with it in a calm and reasonable manner.
What Things Should You Consider If You’re Going Through Business Litigation?
No business owner wants to get sued by anyone. However, you might still become surprised one day if you receive a letter to find out that someone has filed a lawsuit against you. To help you figure out what to do, here are some things for you to consider if you’re going through business litigation:
- Hire a lawyer if you don’t have one yet to carefully review the details of the lawsuit itself.
Some business owners have their own legal team so they won’t have a hard time looking for someone to represent them in court if ever they get sued. But in case you don’t have your own lawyer yet for your business, you might want to hire one right away who can help you pore over every little detail that’s included in the lawsuit filed against you.
- You and your lawyer should check if the lawsuit mentions all concerned persons and business entities correctly. Even if the complainant had misspelled only one letter of your business name, you can move to have the entire lawsuit dismissed.
- However, if the lawsuit has been proven to contain nothing but correct information, you should ensure that all printed and electronic documents, as well as other data that have to do with the litigation, are preserved.
- Get in touch with your business insurance provider.
The last thing you would want to do in order to settle a lawsuit filed against your business is to pay for all legal costs right out of your own pocket. To lighten your financial load, you should contact your business insurance provider to find out if your current policies can cover the costs you’ll incur as you defend yourself against the lawsuit itself.
- You should keep in mind though that different business insurance policies cover different types of lawsuits, so you should discuss this with your business insurance provider which among the policies that you currently have is suitable for your situation.
- You would want to keep your lawyer around as well while talking with your business insurance provider in case you need some backing advice from someone who’s more knowledgeable when it comes to insurance-related matters.
- Promptly respond to the lawsuit filed against your business.
You may have deadlines to meet, but as there’s an ongoing lawsuit against your business, you have to respond to it within the time period given to you by the law.
- The average time period wherein you have to submit a written response to a lawsuit filed against your business is usually between 20 to 30 days which allows you to go over its details once again and start answering all charges made against you.
- Even if the allegations presented in the lawsuit filed against you might sound funny, a written response on your end is still necessary. Ignoring the lawsuit filed against your business can force the court assigned to hear it if ever it goes to trial to take the side of the complainant instead of yours which is something you wouldn’t want to happen at all.
- If the complainant would agree to it, consider settling out of court instead.
Courtroom trials cost time and money which can be bad for your business regardless if you’ve won or lost against the complainant who filed a lawsuit against you. If it’s any consolation, most business disputes get resolved not by undergoing a long and expensive trial but by settling out of court instead.
- An out of court settlement between you and the complainant can help both of you settle your differences without the need for them to become public.
- It’s up to both you and the complainant how you want to resolve your dispute whether it be through face to face negotiation, mediation or arbitration as long as you can reach on an agreement after all has been said and done.
Starting your own business isn’t without its fair share of risks which is why not everyone can get into it and expect to live the good life right away. However, even the most strong-willed business owner can fall apart in the midst of a lawsuit filed against them as it can spell the end of everything that they’ve worked long and hard for. Thus, you’d want to consider the above-listed things if you’re going through business litigation yourself for you to face it with your head held high. You’d also want to continue running your business even in the midst of an ongoing litigation so that you won’t look as if you’re guilty of anything.
Cindy Dowling, part time writer who offers a fresh take on various law topics with the pieces she writes for local firms. Cindy enjoys a good cup of coffee and a good book whenever she has the time.