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What Steps Should I Take When My Company is Being Sued?

January 8, 2020

It is a stressful experience if your company has a lawsuit brought against it, but it is not an impossible situation. Knowing what to expect during the legal process can help alleviate some of the fear and anxiety that accompanies being sued.  Consulting with an experienced business lawyer will help you through the legal process and ensure your rights and business interests are protected.

What Can I Expect in the Legal Process?

The first notice that your company is being sued is the time to contact an experienced and reputable business lawyer who can ensure that your legal rights are protected, but also that you do not incriminate yourself in any way. If you do not act on the notice of the pending lawsuit, the plaintiff can enter a binding legal judgment against you that will forfeit your right to defend yourself in court. Once you decide to defend your company against the lawsuit, the legal process begins. The following are helpful tips when going through the legal process:

  • Be sure to work with your attorney to meet all critical deadlines for filing and submitting documents. Failure to meet these deadlines can result in a delay in processing and have negative effects on your outcome.
  • Never speak or communicate directly with the plaintiff or their legal team without the advice of your lawyer. All statements and information provided during the legal process can be used against you.
  • Ensure that all information contained in the lawsuit is correct. If it is not, your lawyer can make a motion to dismiss the lawsuit entirely.
  • Gather all documents that support your position, including paper and electronic documents. Documents can include letters, written reports, emails, voicemails, photographs, and web pages. Do not destroy or dispose of any documents, even if you think they may be incriminating. It is best to share everything with your lawyer.
  • Confer with your defense lawyer to determine if you have a basis for a countersuit. A countersuit can turn the tables on the plaintiff and diminish some of their power in your lawsuit. If you claim defamation or libel, the plaintiff must defend themselves.
  • Contact your business insurance carrier. Most business policies have clauses that cover a lot of areas that result in lawsuits. Coverage from the insurance company could cover attorney fees, court costs, and settlements or judgments.
  • Submit your response to the lawsuit within the deadline specified. The response should indicate whether you are admitting or denying the allegations brought against your company, any countersuit you plan to file, and whether you plan to have a trial by jury or wish to settle out of court.
  • At this point, your lawyer will lead you through the legal process until the case is settled, either in court or through a settlement.

In all cases, remember to trust the advice of your lawyer, or seek additional counsel. Be sure your company operates as normal and conducts its business as usual throughout the legal process.

Philadelphia Business Lawyers at the Harty Law Group Counsel and Represent Business Owners

If your company is facing a lawsuit, call the Philadelphia business lawyers at the Harty Law Group today. We understand the legal process and will advise you on the next best steps to take for yourself and your company. Call us at 267-262-5650 or contact us online to schedule an initial consultation today. Located in Philadelphia and Haddonfield, New Jersey, we serve clients throughout Pennsylvania and New Jersey.

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