Your company has been sued, or someone (a client, business partner, competitor, municipality, etc.) wants to sue your company. What do you do? For starters, do not panic. Suits against well-run, ethical companies such as yours happen all the time. While it is true that many of those disputes can get nasty and complicated depending on the specifics of the case, others could be resolved relatively quickly — provided the business owner approaches the matter appropriately.
Here is what you should do as a business owner when someone wants to sue your company.
You Can Almost Always Have a Lawsuit Filed Against You
These days, companies of all sizes can be sued in ways that range from the obvious to the absurd. These include everything from suspected negligence and personal injury claims to breach of contract, discrimination, defamation, and the inability to pay a debt.
If you find yourself in this position, follow these steps.
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Do not ignore complaints
Even if you believe deep down that the person who wants to sue your company has no leg to stand on when it comes to their complaint(s), the last thing you want to do is ignore the issues raised by the person, call their bluff, or hope that the situation blows over. Cases that seem straightforward rarely are, and ignoring the complaint could lead to even more problems in the long run that likely could have been resolved or avoided much earlier in the process. It is incumbent upon you to take any complaint seriously, regardless of how trivial you may think it is. If you have any form of insurance, submit the claim to your insurance company to see if you have coverage or if they will pay to defend the lawsuit.
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See if the matter can be resolved amicably
Many times, taking responsibility for any misunderstanding, presenting options that work for all parties involved, and trying your best to fix the issue can keep small matters from spiraling out of control. All too often, business owners see these actions as an admission of guilt. But that could not be further from the truth. By talking through a dispute, all parties can state their side of the story and create a healthy dialogue that hopefully leads to an effective resolution. Engaging in this process is essential at the outset of the litigation process so that the money you would spend on defending the case (if not covered by insurance) can be used to resolve it. In some instances, this is subjectively very hard because of your emotions. Still, it often is the best business decision when you view the time and energy that will be devoted to the defense of the claim and will not be available to address the current needs of your business.
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Keep your cool
Speaking of healthy dialogue; no good can come from making a tenuous situation even more hostile or retaliatory by getting angry, threatening, or cutting off all contact. If someone wants to sue your company, take a step back and weigh the pros and cons of a decision before you act. In most cases, walking away from a dispute is often the best way to avoid being sued.
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Hire a competent attorney.
The thought of someone wanting to sue your company can make anyone nervous about what could happen next. When and if that day comes, it is important to have an experienced lawyer in your corner to help determine if the other side has a valid claim and what the next steps should be. While it is perfectly OK to talk to the other party and see if the matter can be resolved amicably, representing yourself in court is never a good idea if you are unsuccessful in satisfying them. If you have a lawyer provided by your insurance company, you should consider hiring an independent lawyer if you have questions about the insurance company’s actions or inactions to confirm the insurance company is fulfilling its obligations to you under the insurance contract.
Call Nelson Law Group Today!!
When someone wants to sue your company, it is always a good idea to talk to a lawyer about your situation. Give our knowledgeable staff at Nelson Law Group, PC, a call if you have any further questions. Our staff is always available.
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