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What To Do If Your Business Gets Sued

What To Do If Your Business Gets Sued

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A sheriff's deputy knocks on the door, or a certified letter shows up with a summons and complaint. Now what? Business litigator Andy Lax walks through the first moves every business owner should make after being served.

In this episode:

  • Ignoring a lawsuit is one of the most expensive mistakes you can make; you typically have about 30 days to respond before the other side can seek a default judgment.
  • Call your insurance agent first. Your policy may cover the claim, which can mean the insurer provides and pays for your lawyer.
  • A "reservation of rights" letter means the insurer isn't sure the claim is covered, but it will usually still provide a lawyer while that gets sorted out.

The takeaway: The first two calls after you're sued: your insurance agent, then a lawyer. The worst response is no response.

About the guest: Andy Lax is an attorney with Forrest Firm. Learn more at forrestfirm.com.

If you'd like to speak with an attorney about a business dispute, learn about our Fractional General Counsel services at https://clark.law/fractional-general-counsel/ or contact us at https://clark.law/contact/

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This podcast provides general information only and is not legal advice. Listening does not create an attorney-client relationship. Guests' views are their own.

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