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What should business owners do if they are sued?

On Behalf of | Apr 6, 2022 | Business Law |

Facing a lawsuit can be a very troubling experience for Michigan business owners. Luckily, there are some immediate steps owners can take to protect themselves and defend their interests in the case of a lawsuit. Although it can be quite upsetting and overwhelming to be sued, keeping calm and taking the necessary steps can make a significant difference in the outcome of a lawsuit.  

Here are some dos and don’ts business owners should consider if they are being sued: 

  • Do contact a lawyer: Having legal advice as early as possible when facing a lawsuit can prevent critical errors and help business owners understand what they need to prepare in terms of evidence to fight the lawsuit. 
  • Don’t contact the plaintiff directly: Although it may be tempting to reach out to the person filed the suit, this is usually not the best approach from a legal perspective. Instead, communicate through legal counsel to ensure communications are properly worded and documented. 
  • Do inform your insurer: Many suits are covered by commonly held business insurance is such as general liability insurance or workers’ compensation. There may be paperwork needed to start the coverage process, and legal fees may also be covered from early on. Therefore, it is a good idea to contact the insurer right away. 
  • Do not ignore the situation: Ignoring a lawsuit puts the power in the plaintiff’s hands. They may be able to file a request for default, meaning they will win the case regardless of the business owner’s position.  

It is typically very important to respond right away to a lawsuit and to do so after consulting with an attorney and the insurance company. Although lawsuits can vary greatly, the general advice of speaking with professionals and responding quickly holds out in almost every case. Those who are facing a lawsuit in Michigan should not hesitate to speak with lawyer in their area. 

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