It was a misunderstanding that unnecessarily escalated. Now, someone has filed a lawsuit against your company. It is time to remain level-headed, think strategically and respond in a tactful, yet aggressive manner.
Before companies respond to a lawsuit, what must they do? Well, a great amount of organized planning is needed. Taking calculated steps is essential. Reaching out to trusted contacts, understanding the critical issues of the lawsuit and building the framework of your response are among the critical actions to take.
Discuss and retain documents
Here are three things to do when your company faces a lawsuit:
- Talk about it: Discuss the situation and circumstances with your partners, company insiders as well as trusted peers and friends within the business community. Examine what happened and learn more. In some instances, your work colleagues may know about specific details of the lawsuit that you do not. These conversations also must be kept confidential.
- Seek legal advice: Contact an attorney. An attorney who focuses on business litigation has likely seen similar cases. He or she can dissect details of the case to determine whether the lawsuit is valid or simply serves as a legal maneuver to manipulate and frighten you.
- Gather related records and documents: Supporting evidence to contradict the other party’s claims is crucial in any lawsuit. The list of documents may include electronic documents, contracts, invoices, letters, emails and correspondences. Also, create a chronological summary of events along with descriptions and narratives. This likely will spark your memory. Retain these records and do not shred anything.
Preparation and anticipation are two important aspects to consider when confronted with a lawsuit.
Protect your company
A study by the Small Business Administration (SBA) disclosed that 43% of small businesses faced threats of a lawsuit. So, you understand that this is not uncharted turf. If a lawsuit comes your way, you must take important steps to protect your company.
