Is Your Business Staring Down the Barrel of a Lawsuit? Take These Four Steps First!

Owning a business can be very rewarding, but it does come with some potential downsides. If a business runs long enough, it is almost inevitable that a lawsuit will be filed against it for one reason or another. While unpleasant, it doesn’t have to cause devastation if you handle it properly. The following four steps can help you to ensure you are prepared for whatever comes your way.

1. Talk to an Attorney!
Whether you have been served a complaint, or you suspect a situation may lead to legal action, your first step should always be to talk with an attorney. An experienced business attorney can objectively analyze the situation and provide you with concrete actions you can take to protect yourself and your company. Talking to an attorney early on in the process will also help ensure they have the ability to properly prepare an effective defense on your behalf.

2. Make a Business Decision, Not an Emotional Decision

When someone files a lawsuit against your business it can be easy to look at it as a personal attack. This can cause your emotions to run hot, which all too often leads to making bad decisions. When dealing with any type of legal challenge, make sure you try to step back and look at the situation as if it were just any other business transaction. Weigh out all your options, consider all the information, and make decisions based on your desired outcomes. Pursuing a defense based on “principle” is not a sound legal strategy and will undoubtedly be an expensive one.

3. Don’t Throw Good Money After Bad
Business owners often look at the potential financial outcome of a lawsuit and choose to fight it rather than settling. While fighting it is often the right course of action, it should only be done after understanding the full impact of what could happen. A lawsuit can often bring negative publicity, result in productive time lost, take many months, if not years, to resolve and lead to other issues. If the overall cost of the lawsuit is too high, it might be a good idea to settle the case so you know the exact outcome.

4. Gather Evidence
If you are facing a lawsuit, or a potential lawsuit, you want to make sure you have all the evidence possible to make a strong case. Make sure you save all video tapes, audio evidence, financial information, texts and emails, and anything else that could possibly be used in your case. Even if you don’t need it, having it available will ensure all your options are available.

While facing a lawsuit can be difficult, it is something you can absolutely get through if you make the right choices. Contact APH Law to discuss your situation, and get concrete advice on how to best proceed.

Written by APH Law PLLC


When we founded APH Law PLLC in 2010, we did so out of a desire to connect business owners with more and better opportunities. No matter what industry you’re operating in, creating a strong foundation, preparing for the future, and protecting against challenges are key to long-term success. It is this kind of support that we take tremendous pride in helping businesses.