Imagine this. You’ve been pouring your time, energy, and financial resources into building your small business. Now, your business has been sued. What should you do? Facing a lawsuit can be daunting, but with the right steps, you can navigate this challenging situation effectively. Here’s three things you should do if your business has been sued.
First, and probably the most important thing, do not ignore the lawsuit! Ignoring a lawsuit will not make it go away. In fact, it can lead to a default judgment against your business, meaning the court could automatically rule in favor of the plaintiff simply because you didn’t respond. Instead, take time to read the complaint carefully. Understand the claims being made against your business and calendar any deadlines for responding. Missing these deadlines can have serious consequences for your case.
Second, contact your attorney immediately. Generally, a business cannot represent itself. There are exceptions, like if the lawsuit is in small claims court. If you don’t have attorney, now is the time to find a qualified business attorney, like DaPonte Law, who can help you navigate the legal process. An attorney can explain the allegations against you, help you understand your rights and obligations, and develop a strategy for your defense. An attorney will help you prepare and file the necessary legal documents within the required timeframe. This might include drafting an answer to the complaint or filing a motion to dismiss.
Third, preserve any evidence that may be relevant to the lawsuit, including documents, records and electronic data. Gather and secure all documents, emails, contracts, and other records related to the case. Make copies and keep them organized. Also ensure that electronic data, such as emails and digital files, are preserved and not deleted. If you have any automatic email deletion policies, then disable it. The last thing you want is to be sanctioned because important documents related to the case were not preserved. You should also identify any potential witnesses who may have information relevant to the case, and inform your attorney about them.
Lawsuits can be distracting and stressful, but by taking these three steps—reading the documents carefully, contacting your attorney, and preserving evidence—you can better manage the situation and protect your business.