Unfortunately, if you own a business, there is a real possibility that you could get sued, especially if you don’t take precautionary steps to prevent lawsuits. In the event of a lawsuit, there are steps that you need to take so the damages and expenses are minimal. Even if you know some business law, you need to have a business lawyer on your side.
Review the Lawsuit With an Attorney
Lawsuits are complicated. Business Law is vast and complex. The legal system is complicated. Because of this, it is critical that you review the lawsuit with a qualified attorney so you know exactly what it is that you’re up against. In some cases, the lawsuit may not have been filed correctly and you can move to dismiss it altogether. However, if everything is in order, it’s important to review the allegations and put a litigation hold in place. This requires you and your company to preserve all data that may relate to the lawsuit.
Keeping relevant documents, no matter how tangential, is crucial. These are your evidence and can be the difference between a win and a loss. Consult with our office to help you determine all the documents that you need to preserve.
In Utah for example, a business is not allowed to be represented in court by its CEO or owner. So even if you own 100% of all the stock in a corporation, you still need a licensed attorney to represent your business in court.
Do Not Communicate One-on-One with the Other Side Without Your Lawyer
We all know the part of the Miranda rights where it says: “you have the right to remain silent, anything you say can and will be used against you in a court of law” — even in business law cases – this is a good guideline for how to interact with the other party suing you. Do not communicate directly with the plaintiff at all until you review the lawsuit with your attorney. Even then, all communication should be made through your attorney, who has a better understanding of how to keep you from giving the suing party more leverage against you.
If the plaintiff is someone you cannot avoid communicating with, make it clear that you refuse to speak with them about anything regarding the lawsuit.
You May Have to Inform Your Insurance Provider
Depending on the type of lawsuit, a business’ insurance policy will be able to cover the various lawsuits that may come against a business. If the suit falls under the scope of your insurance policy, sometimes a part or portion of the expenses of the suit will be paid by your insurance benefits. However, if you do not think that the suit will be covered by your policy, you must get in touch with your insurance provider as soon as possible so you can figure out the best course of action regarding your company’s insurance. We can help you determine whether this is necessary for your business in your specific case.
Decide How to Proceed in the Business Lawsuit and Respond Accordingly
When you are given a lawsuit, you must typically file a written response (called an Answer) within 21 days or 30 days of service of the lawsuit. Consult with your attorney about what your best options are. At out office, we prepare and file the Answer on your behalf. Understanding the claims against you will guide you to the smartest response. Every suit must be dealt with differently, and regardless of what you decide, be sure your attorney checks your response or motion before sending it to make sure you’ve addressed everything properly. Do not ignore the suit, because this can lead to a Request for Default, which automatically gives the plaintiff the win in your case and forces you to comply with whatever judgment the court makes against you. It is better to fight now than to wait and deal with a judgment against you.
Call Our Business Attorneys to Represent You
You will need business attorneys to defend your case in court, and depending on the complexity, you may want one that specializes in the type of suit being put against you. Ensure that the attorney you choose is familiar with your case and, if at all possible, the court where the case has been filed. Legal defenses can be expensive so make sure that the attorney you choose is knowledgeable and communicates well. In our office, we have years of experience in West Jordan, Salt Lake City, South Jordan, Sandy, Midvale, Riverton, Draper, Magna, Alpine, Lehi, Tooele, Grantsville, American Fork, Pleasant Grove, Bountiful, Woods Cross, Lindon, Centerville, Orem, Park City, Midway, Farmington, Provo, Layton, and Heber City.
Legal Advice for the Lawsuit
Be honest in your dealings with your business lawyers. Trying to cover things up will make the suit more difficult and it will come back to bite you. Be diligent, focused, and timely. Do not procrastinate reviewing what your business attorney sends you. Stay organized and on top of how the case is progressing. Do not forget your business and make sure that you continue to run it effectively despite the suit. Be proactive and take measures to prevent similar lawsuits in the future, especially in the HR department. Above all, remain calm and continue to work in the best interests of your company. Our office can help you get through the lawsuit and help stop similar lawsuits in the future.
Free Consultation with Business Lawyers
We want to help you with your business legal matter. Call us today to discuss your case either in person or over the phone. Get the information and legal answers you are seeking by calling us today.
8833 S. Redwood Road, Suite C
West Jordan, Utah
84088 United States
Telephone: (801) 876-5875
Additional Business Lawyer Resources