If You Do Get Sued
Getting sued is never fun and whether you offer a product or a service, you have a chance someone may jump on the lawsuit wagon. Even if you think a customer or vendor has no cause to sue you, they will still be able to find an attorney willing to take the case.
Most new small business owners make the mistake of attempting to contact the customer who filed the lawsuit. If you’ve received correspondence from an attorney, it’s time for you to contact your insurance broker and inform them of the lawsuit or legal issue. From that point, the insurance company will hire an attorney to represent you and your business.
Try and refrain from calling the person who filed the lawsuit and make sure you give your lawyer the name of the attorney who filed the suit. Once you hire an attorney or are appointed an attorney by your insurance company, the person who filed the lawsuit has no right to contact you nor do you have the right to contact them. The attorneys will contact each other during the lawsuit.
Ignore nasty phone calls from the customer as hard as that may be. Don’t try and offer the customer a resolution once a lawsuit has been filed; that’s your attorney’s job. Never send emails or any type of correspondence to the individual filing a suit against your company. Emails, written correspondence and telephone conversations without your attorney’s go-ahead can often be detrimental to your case.
If you own a franchise and are sued, contact your manufacturer representative to assist you in your defense. Most franchisors have arbitration or mediation clauses for the products they sell.