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March 1 2019

What Should I Do If My Business is Sued?

Complaints and disagreements area part of doing business with the public and other companies here in Coral Springs, Parkland and Broward County. Even though you can decrease your legal liability for some matters by drafting and using contracts and other legal documents in your daily business transactions, you may not be able to avoid the law or a lawsuit.

A party may file a lawsuit even though it does not have a valid legal argument or grounds for the allegations within the lawsuit. What you do when you receive the lawsuit can have a significant impact on the outcome of the case.

In the article below, our Coral Springs business law attorney discusses the steps to take if your business is sued.

Five Steps to Take if You Receive a Lawsuit Naming Your Business as a Defendant

  1. Notify Your Insurance Provider Immediately

You need to notify your general liability insurance carrier of the lawsuit immediately.

You may also need to notify other insurance providers, depending on the nature of the lawsuit. For instance, if the matter involves a car accident, you should notify your car insurance provider.

  1. Read the Entire Document Carefully

The first step is to understand who is suingyour company and why. Reading the entire complaint very carefully making notes of any questions or concerns that you have regarding the allegations within the complaint.

If the complaint contains false information, make a note of that information. Be very careful to note if the complaint contains a Cease and DesistOrder. If the court has issued a temporary order, you do not want to violate the terms of the order.

  1. Contact a Business Law Attorney in Your Area

If the matters in the lawsuit are coveredby insurance, your insurance company may provide an attorney to defend your company. However, you may also want to contact a Florida business law attorney to discuss your personalliability.

Most business liability insurance policies do not cover personal liability for claims. Therefore, your personalassets could be in jeopardy. A business law attorney can review the lawsuit to determine if you need separate counsel to protect your legal rights and best interests during litigation.

  1. Never Try to Hide Information or Destroy Evidence

When you discuss the lawsuit with your attorney, be completely honest. Finding out information in a courtroom that the attorney needed to know beforehand can hurt your case. Even if you believe the information you disclose may hurt your chances of winning the case or makes your company liable for a claim, you need to tell your attorney.

Preparing an effective defense strategy requires having all the relevant facts. Also, never try to destroy evidence or hide evidence. You could face criminal charges in addition to civil liability if you knowingly and purposefully destroy evidence.

  1. Discuss Your Legal Options and Goals

Typically, the goal is for the dismissal of the lawsuit with the least amount of time and money being investedin defense ofthe lawsuit. However, a dismissal may not be possible. You may need to aggressively pursue one or more defenses to the allegations in the lawsuit.

Your business law attorney will discuss the different directions a case may take. Depending on the situation, your attorney may suggest filing a counterclaim alleging wrongdoing on the part of the plaintiff or a third-party complaint to bring additional defendants into the lawsuit that may be liable for the claim.

Most lawsuits are settledbefore trial through mediation, arbitration, or negotiations. Your attorney will discuss all courses of action related to the lawsuit. He will discuss the pros and cons of each option to help you decide which option is best for your situation.

Most importantly, your attorney protects your business and your personalinterests by aggressively defending you and the company against the allegations in the lawsuit.

 Contact Matthew Fornaro, P.A. to Discuss Your Business Law Matters

Matthew Fornaro represents individuals and businesses throughout Coral Springs, Parkland, and Broward County in all matters related to business law. Attorney Fornaro will aggressively defend your business against all claims.

To request a consultation, call 954-324-3651 or contact us online.

Does Your Website Need a Privacy Policy in 2019? Broward County Bar Thanks Matthew Fornaro, Esq.

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