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How Your Business Can Cope With Being Sued

February 19, 2025

Posted in Uncategorized

Your business is being sued. You may have expected it, or it may be a surprise. You may or may not have done what you’re accused of doing. Either way, the plaintiff has the burden of proof, but you’ll have to settle early or prepare to defend yourself. Here are some suggestions on coping with being sued.

  1. Stay Calm

There’s no need to panic. Litigation may be nerve-racking, and the plaintiff may claim they’ll take away your business or at least cost you a lot of money. But, if you put up a competent defense and (ideally) the law is on your side, stay optimistic and focus on running your business as best you can. Letting a lawsuit prevent you from running a business may do more harm than the lawsuit itself.

  1. Hire The Best Defense You Can

That money you saved for a rainy day? It’s raining.

A more experienced Orange, CA business litigation lawyer who has handled these cases in the past will be better able to analyze the situation and point out the strengths and weaknesses of the claims and your defenses. They know what’s important, what questions to ask, what information to seek, and should cut to the chase.

After getting a good handle on the situation, this attorney will be able to come up with a fair settlement value and negotiate a resolution if that’s your approach. Nearly all cases settle. Don’t be so angry you vow never to negotiate a resolution because that approach might cost you your business (and sanity).

  1. Protect Your Workers

Keep the strain off your employees as much as you can for as long as possible. Run your business as normally as possible. Lawsuits are public documents, so even if the media don’t pick up the legal action, word may get out on social media.

Come up with an honest and powerful message to your employees, with the understanding that anything you say could be used in the litigation against you. Tell them not to discuss anything case-related to anyone, especially the press. It won’t help the company or them.

  1. Expect Stress

Lawsuits can be very personal, even if the subject is what your business did or didn’t do. Try to burn off this stress in a healthy way. You need not spend all your time away from work at a gym. Just regularly go for walks if that’s all you’re up for. Don’t try to relax by using alcohol or drugs or take your anger out on family, friends, or employees. You’ll just make a bad situation worse.

  1. Insurance Coverage

Depending on what’s claimed, that insurance you’re paying for may give you a huge investment return. With exceptions and limits, your business insurance may cover your defense costs and liabilities. If you’re covered, the lawsuit’s potential threat to your business may be manageable, if not minimal.

As potential legal issues come up when you’re running your business, discuss them with your attorney. By following their advice, you may be able to prevent being sued, or if a lawsuit is filed, it may be less damaging than it could’ve been. After being sued, your attorney may represent your company, you may need help from someone with more specialized knowledge. Your insurance company may pay who you want to represent you or provide you with a lawyer. Your business deserves strong legal support—call Focus Law LA today to get started.