If your small business is sued by an employee or client, it can cost you a lot of money whether you win or lose. It is a very tough situation; but if you want to continue running your business, then you should take the following steps.
Review the lawsuit with an attorney
When you receive the suit papers, you should review them with an experienced business lawyer. You should check the caption and service information to make sure that it contains the proper person or entity associated with the issue. If there is a mistake, you can move towards dismissing the action. If the information is correct, then you should review the allegations brought against you. You should preserve all documents, electronic materials, photos, videos, etc. related to the case.
Inform your insurance company
There are insurance policies that cover companies in case of a lawsuit. If your case is covered by the insurance policy, then they will pay for your attorney’s fees, court fees and the other legal fees. It is necessary to forward the suit papers to the insurance provider as soon as possible so that necessary actions can be taken.
Make a plan to respond to the complaint
When a lawsuit is issued, you are given a deadline to submit a written response. Generally, you must respond within 30 days. You must write whether you have admitted or denied the case, and whether you want a jury trial or out of court settlement. Before responding to the complaint, you must make sure that you understand what this case may do to your business. So, determine whether you want to proceed with the case or not.
Find a defense attorney
You should hire an attorney who specializes in your case. You should ask your friends and colleagues to give you recommendations. You must check the background and experience of the attorney before hiring him or her. The attorney you hire must be able to communicate with you well.
The litigation process can be very stressful. It might also take a long time. You shouldn’t lose hope or be disappointed at any moment. You should stay focused on your business and keep your head held high.