Not everything is rosy in the business world. Facing a lawsuit is one such example. Whether this development was expected or came as surprise, you must prepare for this latest and not-so-pleasant business challenge.
In launching your business, you collaborated with a trusted team, understood the challenges and confronted those challenges. Now that a lawsuit against your company has surfaced, you must rely on that same blueprint, but with different objectives in studying the legal issues and forming a strong and united response.
Discuss with team, retain solid legal team
Here are some of the initial steps to take when responding to a lawsuit:
- Discuss and delve into the legal issues: This marks the time to collaborate with and listen to the advice of your business team, business partners and confidantes within your industry. Make sure these conversations are confidential. Someone within your circle of associates may have crucial insight into having experienced a similar situation. In understanding the details of the lawsuit, you may become better acquainted with how to address and approach this matter.
- Retain a solid and dependable legal team: Whether turning to an in-house corporate counsel team or an outside firm with a successful record in business litigation, you need crucial insight and realistic expectations. A solid legal team can analyze the details to determine whether the plaintiff has a legitimate case or is simply attempting to intimidate you.
- Assemble all relevant documents: You want supporting evidence that will counter any of the plaintiff’s claims, so you must scrutinize mountains of paperwork. Some of these documents and other communiques may include electronic documents, contracts, letters, invoices, emails and voicemails. By doing this, you can create a chronology of events. As a result, this information may jog the memories of your business team; crucial details that you overlooked. Make sure to secure this information as it likely will surface in court.
Because your company likely has never faced such a legal challenge, preparation is so crucial.
Overcoming this challenge
Granted, there will be additional risks, namely that responding to a lawsuit promises to take time away from operating your company. However, with a defined legal strategy and a successful response, you can overcome this challenge.