I”ve litigated a lot of business disputes over the years. Lawsuits are expensive, time-consuming and stressful, and it can take a long time to resolve them. That’s why I try to help my clients avoid them altogether.
But sometimes, a dispute just can’t be resolved, and you find yourself on the receiving end of a lawsuit — sometimes quite unexpectedly. You may feel shock, anger….and confusion. What exactly are you supposed to do now? Here are three simple first steps:
1. Try To Understand What The Lawsuit Says
Lawsuits are not always the clearest, most readable documents in the world. But you can at least grasp the basic idea once you understand the terminology. The document you received is actually two documents: the first is the summons, which informs you that an action has been filed against you, and tells you how much time you have to respond. The actual lawsuit is called the complaint. The person or entity that filed the complaint is known as the plaintiff. If you are being sued, you are the defendant. There may be more than one plaintiff and more than one defendant. The complaint does several things:
- It identifies the parties to the case.
- It shows why the case was filed in this court, in this location (in legalese, that’s known as venue and jurisdiction).
- It gives the plaintiff’s version of the facts.
- It explains what claims the plaintiff is making against you. These claims are also known as causes of action.
- It states what the plaintiff is trying to get from you — usually money damages, but possibly something else, such as an injunction to prevent you from doing something.
2. Find Out If There’s Insurance Coverage
Is it possible that you have insurance coverage for the claims being made against you? If so, contact your insurer and tell them about the lawsuit — they may handle the defense of the case.
3. Call A Lawyer
Unless it’s clear that your insurance company is going to handle this, you need to speak to an attorney. As soon as possible. (You knew I was going to say that, didn’t you?) Here’s why: an attorney can advise you on what your defenses might be and whether they’re likely to hold up in court. You might believe with all your heart that you’re right and the other guy is wrong and want to fight this to the end, but that doesn’t mean you’ve got a leg to stand on, legally. Or you may be tempted to avoid conflict and settle right away when you actually have a very good defense. Perhaps you even have a claim against the person who sued you. An attorney can give you an objective evaluation. And it’s important to talk to someone right away because you only have a limited time to respond to the lawsuit.
