Hopefully, you’ll never need to experience a lawsuit that is filed against your business. Your business, is your dream, your bread-giver, and bread-giver to all the people who work for you. Being sued is unfortunate and damaging, but you have to tackle it tactfully to avoid bigger loss. Remember, a disheartened customer or a supplier can claim that he/she had experienced misbehavior, or felt cheated by your company or with your product. So, getting a complaint letter is a part of your business. The important things are how well you can manage the situation and take the right actions.

This article is all about the best possible things to do if your business is sued. Read carefully.

Tackle the demand letter in a right way

Sometimes, you’ll get a demand letter containing complaints, or someone asking for needful corrective action. This type of letter is not a lawsuit. It is a letter seeking your concern. So, you must try to resolve the matter to avoid being sued. The ways you can possibly avoid the lawsuit hassle are:

  • You must inform your lawyer as soon as possible after getting such demand letter.
  • Consult with your lawyer regarding the letter and finalize a response.
  • Try to make the attorney understand that you did nothing bad.
  • Ask the person about a settlement or a mutual understanding.

Give importance to the formal complaint

Don’t ignore a formal complaint against your business. Usually, if the matter isn’t close to a settlement, then you’ll get a formal complaint letter personally. The letter is normally sent by a sheriff. You have to reply within a stipulated time period as it is mentioned in the letter. After receiving the complaint, you must take steps to defend the claim. Talk to your lawyer regarding the matter as soon as you get the letter.

Check the papers thoroughly

You have to respond to the complaint letter within 20-30 days in the court. Sometimes, the hearing takes 3-10 days only. So, you should coordinate with your lawyer as soon as possible regarding the matters to prepare a proper response. Read the papers and understand what the complaint is about and prepare for the best response.

Every complaint count

It doesn't matter if the complaint is true or false. If you find the complaint false and vague, then also you need to take proper steps. You shouldn’t keep the papers in the drawer just because it's not true. Remember, the court doesn’t know that the claim is not true and, which side to trust. So, you must take the matter seriously to avoid being sued.

Involve your lawyer right away

The sooner you inform your lawyer, the more time he/she can get to glance through the matter and finalize a plan, collect necessary information, and witnesses, etc. You must disclose the truth to the lawyer for the best result. This way, your lawyer can give you the best suggestion and can plan the strategy accordingly.

Review your business insurance policy

A lawsuit is always expensive because you have to pay the court cost, legal fees, investigation cost, and so on. So, you must check your business and homeowners insurance to know whether or not the policy is providing support to ease the problem. Talk to the insurance agent to know whether or not the policy can cover your loss.

Think before you open your mouth

Yes, you must close your mouth in front of reporters, business associates, friends, etc. Allow your lawyer to talk about the matter. Your opponent can use your own words against you. Try to limit your conversation in a public place as well.

Consider a settlement

You must try your best to solve the matter. But, it’s advisable that you don’t take the matter to the bitter end. You can be dollar wise by offering or accepting a settlement instead of continuing an expensive lawsuit. Talk to your lawyer about the settlement and proceed accordingly.

Final thoughts

Defending a lawsuit can be stressful, but you must take it seriously to avoid the big loss. Share the truth with your lawyer regarding the matter. Think about your responsibilities toward your business and employees, and motivate yourself to fight the hardship.

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