Your Small Business Just Got Sued. Now What?

Close up photo of a judge’s gavel

Small businesses, just like any other business, try to avoid lawsuits. Lawsuits against small businesses can damage reputations, take up your valuable time, and can be very costly. Most business owners do everything they can to protect their businesses from legal issues, but sometimes, it can't be avoided.

Regardless of the reason your business has been sued, taking the matter seriously from the beginning can help you avoid significant consequences, and contacting an experienced small business attorney who is experienced in handling lawsuits and legal matters as they pertain to small businesses should be your first step.

While many small businesses don't have the budget to keep a small business lawyer "on retainer," our Small Business Legal Subscription Plans give you and your small business access to qualified, dedicated, experienced legal counsel and can help save you time and money in the long term.

Lawyers can help you better understand the case

Understanding legal procedures such as process service, statues of limitations, the arguments of the case, and the legal system itself, among many other details, are things where the average person or small business owner usually doesn't have much experience. Attorneys can walk you through these details and potentially minimize costly consequences stemming from the case. Trials can be expensive, and an attorney may be able to help you get the case dismissed without a trial or to negotiate a settlement or other outcome that helps you avoid court and the costs involved.

Lawyers can help you get organized

Gathering, keeping, and preserving all records relevant to the case will be essential, and attorneys are experts at reviewing contracts, emails, documents, and other records that may be useful or important in your case. Lawyers can also give you legal advice and answer any questions about the case that you may have.

Should You Settle?

You might be inclined to fight the case, especially when you have done nothing wrong, and your attorney will be able to give you advice as to whether it is worth it to fight in court. Settling may ultimately save you time, money, and stress by putting the matter behind you. In some cases, it may be worth the costs of going to court, and your attorney will be able to advise you of your options, detail the pros and cons of those options, and advise you on what next steps to take.

Be Honest and Detailed With Your Attorney

Avoiding some facts of the case with your attorney won't help you, even if those facts don't necessarily present your business in a good light. Your attorney will need to know all the details and review all the documentation of the case - emails, letters, calls, texts, contracts, etc.). Don't try to hide anything. Ask your attorney all the questions you have and be as detailed as possible when discussing your case with your attorney.

Don't Talk About Your Case With Involved Parties

Anything that you say can be used in court, and you may be past the point of settling the dispute without legal intervention. Once attorneys get involved, it is a whole new ballgame.

Don't Ignore The Lawsuit

It's not going to go away on its own, so act immediately. The clock starts ticking on your time to respond to the suit as soon as you have been properly served. Regardless of how frivolous or erroneous the lawsuit may seem, it is imperative that you take the matter seriously and contact your attorney as soon as possible to preserve your business' reputation.

Don't Try To Handle It Yourself

Some cases require representation by an attorney, and even if you are allowed to represent yourself, it is almost never a good idea as a mistake can lead to disastrous consequences.

You Don't Have To Go It Alone

Never give up rights because it seems that fighting a lawsuit will cost too much, be too much trouble, or take too much time and effort. Subscribing to one of our Small Business Legal Subscription Plans will give you access to qualified small business attorneys in your area who can not only guide you if your small business gets sued, but can also help with day-to-day legal issues that are specific to small businesses, such as contract review, employment concerns, protecting intellectual property, patents, and much, much more! Learn more here or sign up today to protect your business!