Over 9 million small businesses are sued in the United States annually. Whether you are initiating a new venture or have been running a successful one for years, it's good to be prepared because lawsuits can happen at any time.

What Is A Lawsuit?

Although lawsuits are common to hear about, it's essential to know the formal definition. If you are sued, someone is accusing you of doing something illegal. They will have to do this in court and request that you provide compensation for what you have done. The plaintiff is the person that is suing you, making you the defendant in the case.

You will be notified of the lawsuit either by documents sent to you in the mail or by hand delivery from a Sheriff. The case will either be brought to a superior court or a small claims court, depending on the amount that the plaintiff is suing you for.

The Next Steps

Now that you have an understanding of what a lawsuit is and can recognize if you are involved in one, these are the next steps:

Don't Ignore It

If you have been sued, the worst thing you can do is ignore it. Make sure that you respond to the summons within the specific time period stated.

If you do not respond to the lawsuit, the court may enter a default judgment against you, and the plaintiff will automatically win. You will automatically be assumed guilty, no matter what the case is or the defense you have. In this case, your creditor may freeze your bank account, and your employer may be forced to stop paying you.

Find Legal Assistance

If you're presented with a lawsuit, you probably don't know where to start. Finding a seasoned attorney will help you navigate the legal process and put your mind at ease. Online tools can help you find a lawyer in your area that is equipped to handle your case.

It is important to note that you should not discuss your case with anyone but your attorney. This includes your family, financial advisors, and coworkers. Information passed to the wrong people may affect your cases outcome. It is better to stay on the safe side and only confide in a legal professional.

Respond To The Summons

There are many different ways to respond to a lawsuit which is why it’s recommended to consult a professional.

In most civil cases, you will respond with an Answer. An Answer will involve a written response where you will admit or deny what you are being accused of by the plaintiff. If you do not respond to an allegation within your Answer, the court will deem it to be true. You will file this Answer with the court and send a copy of it to the plaintiff and their attorney if necessary.

If you do not want to respond with an Answer, there are other options available. You are able to file for the case to be dismissed or for the plaintiff to provide a more definite statement. Click here to find more in-depth information about ways to respond to a lawsuit.

File A Counterclaim

If you believe that the roles should be reversed and the plaintiff actually owes you money, you can file a counterclaim. You are able to sue the plaintiff in response to what you are being sued for or something that is completely different.

You will have to fill out a counterclaim document to file and might be asked to pay a court fee. For small claims cases, you will not be able to sue for any amount over $10,000.

Stay Positive

The most important thing to do in the case of a lawsuit is to stay positive. It is easy to get overwhelmed, but having a good outlook will help you stay focused and lead you to the best possible outcome.

Conclusion

Whether you have been sued or just want to be prepared, it is important to understand the basics. By following these steps, you will be on your way to settling your case in the best way possible.