Getting sued as a business owner is one of those moments that hits you right in the gut. Your mind races, your stress level spikes, and suddenly every worst-case scenario wants a seat at the table. While a lawsuit is serious, this is something you can handle with the right approach and legal guidance.
What should I do if my business is sued? Your next steps matter a lot. Here’s a realistic roadmap to help you proceed with the process.
Never Ignore a Lawsuit
While this might sound obvious, ignoring a lawsuit will not make it go away. If you do, it can and will make things worse.
When your business is sued, you will receive formal legal papers explaining who is suing you, the reason behind legal action, and how long you have to respond.
In Illinois, there are strict deadlines. Missing one deadline, and the court could issue a default judgment. That means the other side automatically wins without ever hearing your side of the story.
Even if the claim feels ridiculous, exaggerated, or flat-out wrong, it needs a response. You want to open the documents, note the deadlines, and put the papers somewhere safe.
Call a Business Litigation Attorney Right Away
This is not a wait and see situation. The sooner you speak with a commercial litigation attorney, the more options you have to take action. Your lawyer can:
- Evaluate the claims against your business
- Explain your risks
- Handle communications with the opposing party
- Prepare and file the required court responses
- Develop a strategy tailored to your goals
At Phillips & Bathke, P.C, the focus is on protecting your business, not just reacting to the lawsuit. We can help position you for the best possible outcome, whether that’s dismissal, negotiation, or litigation.
Preserve Your Records
Once a lawsuit is filed, your business has a legal obligation to preserve all relevant information. That includes things you might not normally think twice about deleting, such as:
- Emails and text messages
- Contracts and invoices
- Accounting records
- Internal communications
- Digital files and backups
Now is not the time to purge old files. Even small deletions can create serious legal problems and make your business look untrustworthy in court.
A business litigation attorney can provide some advice on what needs to be preserved and help you put a plan in place so nothing important slips through the cracks.
Inform the Right People
Next, you want to think about who needs to know and who doesn’t. In many cases, you should contact:
- Your insurance company since some business insurance policies cover legal defense costs or certain claims, but they often require immediate notice.
- Business partners or shareholders if the lawsuit could affect finances or operations.
- Key employees, but only if necessary, and usually with advice from your attorney.
What you don’t want to do is discuss the lawsuit casually with staff, customers, or vendors. Offhand comments have a way of resurfacing at the worst possible time.
Know That Not Every Lawsuit Goes to Trial
Fortunately, most business lawsuits never see the inside of a courtroom. Many cases are resolved through:
- Negotiation
- Mediation
- Settlement agreements
- Early dismissal based on legal defenses
A lawsuit does not mean years of litigation or a catastrophic resolution. With the right strategy, you may be able to resolve the matter and keep your business moving without making mistakes.
Focus on What You Can Control
While the legal process unfolds, your job is to keep running your business. Yes, that is easier said than done. This is the time to lean on your legal team to handle the case while you stay focused on:
- Serving clients
- Managing employees
- Protecting cash flow
- Planning for the future
An excellent lawyer doesn’t fight legal battles; they help reduce disruption so you can stay in control.
Get the Right Help for Any Business Litigation Issues
What should I do if my business is sued? First of all, don’t panic. At Phillips & Bathke, P.C, we can help business owners who are facing lawsuits.
If you have been served with legal papers or believe a lawsuit may be coming, now is the time to act. A conversation with us can make a difference in protecting your business and your peace of mind. Schedule a consultation today to learn about your options.
