Small Business Brief

Attorneys & Legal

4 Crucial Tips to Fight a Business Lawsuit

While it may seem out of the ordinary to deal with a business lawsuit, it really isn’t.

In fact, it’s estimated that anywhere between 36 and 53 percent of small businesses are involved in at least one litigation each year. Additionally, at any given time, 90 percent of all businesses are involved in litigation. 

At some point or another, there’s a good chance that your business will be in the trenches. When this time comes, it’s very important that you’re adequately prepared. 

What do you need to do?

Check out this guide to discover the crucial tips you need to know to fight a business lawsuit. 

1. Hire the Right Lawyer 

Hiring the right lawyer is one of the most important steps in winning your business lawsuit. 

Don’t just hire the first lawyer you come across on Google. You need to make sure you do your research. 

First and foremost, make sure to search for lawyers who have experience with business litigation and winning cases that are similar to yours. Read reviews on popular legal sites, ask for references, and always consult with a lawyer in person before hiring. 

If you’re searching for a business litigation attorney in Southern California, then you may want to check out this former Deputy District Attorney

2. Get in Touch With Your Insurance Provider 

As soon as you find out about the lawsuit, it’s very important that you get in touch with your insurance provider. 

Depending on the policy you’ve chosen, your insurance provider may cover things such as court costs, attorney fees, or settlement costs. 

Most insurance companies require immediate reporting, and they require you to forward them all papers related to the suit. This is why it’s so important to get in touch immediately and stay in contact. 

3. Know What to Avoid 

When your business is sued, there are certain things you want to avoid doing at all costs. This includes:

  • Contacting the Business Directly: This typically just causes a bigger mess, and it could impede you from winning your case 
  • Ignore the Lawsuit: Typically, you have 30 days to respond to the lawsuit. If you don’t respond in this time period, the plaintiff can file a Request for Default and win the case
  • Forget About Your Business: Don’t let legal proceedings get in the way of you operating your day to day business. Instead, allow your legal team to do the heavy lifting 

By avoiding these things, you’ll have a better chance of winning your case and not harming your business. 

4. Consider Settling 

While settling may feel like you’re admitting defeat, in many cases, it’s the most logical option. 

In some cases, settling is cheaper than dealing with legal fees and potential damage expenses. Obviously, you should consult with your lawyer about settling, but it’s something to have an open mind about. 

Are You Ready to Tackle Your Business Lawsuit? 

Now that you’ve read this guide, you should be better prepared to tackle your business lawsuit. As we mentioned at the beginning of the article, almost every business deals with a lawsuit at some point, so try to stay level-headed about the lawsuit and take everything in stride. 

Also, be sure to check back in with our blog for more tips and tricks on running your business!