Sometimes the worst-case scenario for a business becomes a reality: they get served with a lawsuit. What happens when a lawsuit pops up? How does a business protect itself?

Usually there is some type of warning before a lawsuit is filed. This can be in the form of a letter, a disgruntled employee threatening the company, etc. Often, in-house counsel will have an idea if there’s a possibility of a lawsuit. This is where risk assessments are beneficial.

After the plaintiff files a lawsuit with state or federal court, a copy of the complaint is served to the defendant (the business). This gives the specific reasons for the lawsuit. When a business knows the specific reasoning, they can begin to gather paperwork and other materials for the case.

Attorneys and business owners will have to act fast in gathering the paperwork because a response to the complaint can be required in as little as 3 days in some cases. Even if the claims against the business are false, they should be taken seriously.  The defendant can take some immediate steps to have a baseless case dismissed early on, and absolutely should not assume that the judge will simply recognize and dismiss the false claims.

To limit the damage the plaintiff can do in court, the defendant should not discuss the case with anyone outside of the business or legal team. The defendant should also keep all records, emails and paperwork that has to do with the case. Discarding any record that the judge later determines should have been preserved could lead to expensive sanctions and the judge may instruct the jury to put the most unfavorable interpretation on what might have been contained in the discarded record.

If it doesn’t look like the judge is going to side with the business, they should weigh their options. Continuing with the legal battle could end up costing the business more money than it can afford. Sometimes settlement makes more sense in the end, if the plaintiff is willing to compromise.

There’s a high likelihood of a business being sued at some point. It’s better to be prepared before it actually happens. Having an experienced in-house attorney, like InnovaCounsel, can make lawsuits, or the possibility of a lawsuit, less stressful on the business.

InnovaCounsel attorneys offer their clients high-quality legal counsel at a rate that even those businesses with a limited legal budget can afford. They work on-site part-time to help with day-to-day legal functions and oversee special projects.