What to do if your business is sued

February 6, 2013

Owning your own business is a big milestone for many small business owners. Businesses deal with many different legal aspects and when a legal issue comes up, it can be somewhat complicated and even frustrating.

One legal matter than many business owners fear is being sued. What should do if someone files a lawsuit against your company? In order to help their business, owners should be aware of the steps to take if their business is sued.

The first step to take when facing a lawsuit is to consult with a business law attorney. Businesses being sued can really benefit from an attorney's advice. Be sure to consult an attorney as soon as possible in order to have plenty of time to understand the lawsuit and prepare a response.

Other steps businesses should take when being sued is to make sure to read the entire lawsuit. It is important to understand the reason why your business is being sued and make it easier to respond to the plaintiff.

Business being sued should make sure they were properly served with court papers before responding to the lawsuit. Keep track of the how the documents were served to your business because if it was done incorrectly, you may have additional time to respond to the lawsuit. Businesses should also check the lawsuit for any mistakes, including all spellings to make sure the named defendant is actually your business and not another one with similar spelling.

Being served with a lawsuit is never easy but businesses can take the proper steps to make sure the business will survive after the lawsuit. Businesses who have been sued should consult a business law attorney as soon as possible to discuss the next steps and how their business may be impacted by the lawsuit.

Source: FindLaw Free Enterprise, "5 First Steps If Your Business Is Sued," Deanne Katz, Jan. 30, 2013