As a business owner, you may find yourself on the wrong end of a lawsuit at some point. While certain types of business are more susceptible to lawsuits than others (doctors, dentists, lawyers, medical companies, trucking companies, and oil companies), any business could be sued for a multitude of reasons. Hopefully, before a lawsuit happens, you have done some business protection planning (something any of our attorneys can help you with) to structure your business entity, your business assets, and your personal assets so that they have any available protections. You have hopefully also began an asset protection trust program for yourself and your spouse so that in the event of a crippling lawsuit or legal battle, you have resources available that are protected from creditors.
The first thing to do if your business is served with a lawsuit (including you as an individual sole proprietor) is to not panic. However, it is important to take action quickly. There are certain deadlines once a lawsuit is filed that must be followed or you can risk having a negative impact such as a default judgment (which means the court can make ruling without your participation or potentially without submission of your evidence). Also, the earlier you are able to review the claims, the better opportunity you have to preserve important records to help you defend the case.
If you are reading this post, you probably fall into one of two situations, your business has been sued, or you are considering taking preventative action (after all an ounce of prevention is worth a pound of cure). If you find these types of issues are applicable or concerning to you, contact Wiley Law, LLC for a consultation.