The United States has 5% of the population but 70% of the attorneys that file 90% of the lawsuits. 350,000 lawsuits are filed weekly in the U.S.It is an owners nightmare to be sued. I can speak from experience. It has happened to me two times in the last 30 years. All the suits were unfounded. We won in each case, but it still cost us time and legal fees, plus the stress of the process. It might be a customer, an employee, or the government, but whatever the source, it is going to cost you time and money.
I am not an attorney and in no way am I giving legal advice, but from a business perspective, here are some steps you can take.
- Don't panic. Deal with it.
- Don't ignore the lawsuit. No matter how frivolous you think the lawsuit is, or how much you want it to "just go away," if you don't respond you lose by default.
- Contact an attorney right away. Lawsuits are a serious matter and you are at risk. Tell the attorney the whole truth. Don't leave anything out!
- Contact your insurance carrier.
- Begin organizing your documents. Talk to your attorney about the information you have. He may want you to deliver the documents to his or her office.
- Ask your attorney about fees. Many times it is better to negotiate a settlement on the lawsuit, which may be less costly when you consider the attorney fees to take the suit to trial and the value of your time.
Larry Kopsa CPA
