I recently heard a seasoned business owner say that although they play by the rules and try to avoid litigation, over the years they have ‘had their fair share’ of lawsuits. Some industries or types of business are more prone to litigation than others. Whether you were expecting it or not, this is real, and it needs to be dealt with.
The feeling of being served with a court summons for a case related to your business could be sickening. Maybe you’re angry or disappointed, but like all things in life, it is always better to keep your cool.
First you need to gather the papers that were served to you by the process server. Don’t obfuscate or attempt to thwart the process as you may end up getting a default against you by trying to deny that service was made.
Second, document the time and date you were served. There are legal deadlines that have started counting down since the process server recorded you had been served. It could be that you need to “answer” the complaint, or provide documents requested in the ‘discovery”. There could be other important deadlines.
Third, take a second to review some of the documents so you have an idea of what this is about. Remember to stay calm. Don’t reach for your cell phone and start dialing the plaintiff angrily. That is not only unprofessional, but will likely not serve your best interests. They likely made up their mind to sue you weeks or months ago, and time has already passed between when they filed the claim and when you were served. Calling them isn’t likely to change their mind. You need an organized strategy if you want to seek to resolve this out of court.
Next, take a moment and breath. Think about if you have any insurance policies that cover the nature of the suit. There are all kinds of insurance policies that a business owner could carry. Some are specific to your profession or industry. Others are more general like, Workers Compensation, Professional Negligence, or even a general “business owner’s plan”.
Finally, it’s time to contact a business lawyer. Present your case to your lawyer. If you don’t have one, consider presenting your case to a few lawyers until you’ve decided on a professional business lawyer that cares about your business, understands your goals, and truly wants to see you succeed. This business lawyer can take a look at the situation, explain the full situation, and begin devising ways to bring an early resolution, or preparing defense strategies in court.