As a business owner, you want all of your clients and customers to be satisfied — and to keep coming back. So, when you learn that you’ve been sued by a customer or client, it can be devastating on a number of levels. You might feel as though you’ve failed someone, worry about the financial implications of a lawsuit, and have an understandable concern over the impact on your company’s reputation. However, when you have an understanding of what to do in the event of a client/customer lawsuit — from initial steps to navigating a final resolution — you can feel more confident going forward. Here’s a closer look.
While understanding the general process of a client or customer lawsuit can be helpful, the single most important thing you can do is hire a competent business attorney. The right lawyer can help increase your chances of a favorable outcome while minimizing the negative impact on your business’s reputation.
Initial Steps
Getting a notice that you’ve been sued can be stressful and upsetting. If the claims in the lawsuit are exaggerated or untrue, you might even feel angry or indignant. It’s important to realize that while lawsuits can take a good bit of time to resolve, the steps you take as soon as you learn of the lawsuit can help or hurt your case. Here’s what to do first:
Don’t Panic
Many people panic when they find out their business has been sued by a customer or client. However, if you act based on fear alone, there’s a good chance that you’ll do something that will hurt your case in the end.
Get in Touch with a Business Attorney Immediately
You have only limited time to reply to a lawsuit. If you do not respond in time, the other party may win by default. While you can technically respond to a lawsuit without the help of an attorney, an experienced lawyer will know how to respond in a way that gives you the best chance of a positive outcome. If needed, the attorney can represent you during litigation as well.
Preserve Everything Related to the Case
Whatever you do, don’t destroy evidence! Destroying anything related to the case (or that someone could reasonably suspect was related to the case) can make you look guilty and harm your chances of winning your lawsuit. If you’re ever in doubt as to whether something is evidence in a case, keep it.
Don’t Communicate With the Plaintiff
Many people — whether they’re business owners or not — are tempted to get in touch with the plaintiff (the party that filed the lawsuit) to see if they can talk things out. It’s an understandable impulse, but it’s something that almost always makes things worse. If someone has decided to file a lawsuit, it’s because they felt as if their problem could not be solved without court intervention.
Communicating with the plaintiff can also seriously harm your case. Anything you say to the other side can be used against you in court, and it’s possible to say something detrimental to your case without meaning to. If the plaintiff (or someone associated with them) gets in touch, tell them politely but firmly that you are unwilling to discuss the ongoing lawsuit.
Understanding the Lawsuit
The First Step Toward Resolution
Reading through the lawsuit itself can be stressful and upsetting, but you can’t decide how to proceed without thoroughly understanding the other side’s allegations. A client or customer can sue you for just about any reason, but these are some of the most common reasons behind client and customer lawsuits:
- The plaintiff has been injured because of hazardous conditions on your premises.
- The plaintiff has been hurt by a defective product.
- The plaintiff is claiming you have breached a contract with them.
- The plaintiff claims you performed duties incorrectly or gave bad advice.
Once you understand the exact nature of the lawsuit, you should see if your business has an insurance policy that may cover your legal expenses for the claim. For example, if a customer is filing a lawsuit because they were harmed at your brick-and-mortar location, your general liability insurance might cover the cost of legal action. It can be difficult to determine whether or not some claims are covered under your insurance, but your business attorney can help you find the answer.
Not sure how to handle a customer lawsuit? Call Weisblatt Law Firm at (713) 666-1981 to get started with a free phone consultation.
Legal Defense Strategies
A business lawyer will assess the facts of your case and recommend a course of action. These are some of the possibilities:
Settlement
Settling a lawsuit saves you the cost and time involved in litigation. If you think that a trial would likely result in a ruling against you, settling may be preferable. Typically, you can settle a case for less than you would be ordered to pay in a court of law.
Going to Trial
If the plaintiff’s claims are incorrect or even defamatory, you and your lawyer may decide that taking the case to trial is the best course of action. At trial, your attorney can present evidence to show that your business has not committed any wrongdoing.
Alternative Dispute Resolution
In some circumstances, you may be able to pursue mediation, arbitration, or another means of alternative dispute resolution (ADR). This might not be an option in every case, but it can save both sides time and money while still resolving the lawsuit.
The Role of a Business Attorney
Protecting Your Business Has Never Been More Important
If you’re facing a business lawsuit, the right legal guidance is essential. An experienced business attorney can review your case and help you decide whether it’s best to settle the case, proceed to trial, or even consider means of alternative dispute resolution. At Weisblatt Law Firm, we have helped countless business owners like you defend themselves against many kinds of claims.
While there are no guarantees when it comes to lawsuits, an experienced business lawyer can help you increase your chances of a favorable outcome. Call Weisblatt Law Firm today at (713) 666-1981 for a free phone consultation.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
