Facing a lawsuit for a commercial matter can be overwhelming and stressful. You might not only be concerned about how legal action could impact your reputation and bottom line — but you may also be wondering what to do next. Whether you’re a corporate owner, entrepreneur, contractor, vendor, or another party, it’s essential to understand the steps to take if you’ve been sued, and how you can safeguard your interests.
Review the Summons and Complaint
Litigation is often commenced by a summons and complaint. Not to be confused with a demand letter — which only means the other party is considering taking legal action — a summons and complaint notifies you that a formal commercial lawsuit has been filed against you. It’s important to look over the complaint carefully to understand the reason you are being sued.
When reviewing the complaint, be sure to note the following:
- Who commenced the legal action — Who is the party taking legal action against you? Are they a client, supplier, or another business?
- What the commercial lawsuit is about — There are numerous reasons a commercial lawsuit can be commenced. For instance, is it a breach of contract case, a shareholder disagreement, or a non-performance claim?
- Where the lawsuit was filed — The county in which the commercial lawsuit was filed will tell your attorney where you need to appear in court.
- The timeline to respond — You only have a limited time to respond to a summons and complaint. In most cases, an Answer must be filed within 30 days in New York.
You should never ignore a summons and complaint. Failure to respond in a timely manner can lead to a default judgment, which means the court would automatically find in favor of the plaintiff.
Consult with a Skillful Business Attorney
It’s not a good idea to try to handle a commercial matter on your own. These claims can be complex and involve highly nuanced laws. It’s best to consult with a knowledgeable business litigation attorney as soon as possible — they can review the summons and complaint with you, evaluate your available defenses, develop a strategy in your case, and ensure you comply with all applicable deadlines. Once you have retained an attorney in your case, they will handle all communications and negotiations with the opposing party, so you can focus on your business operations.
Collect and Organize Your Evidence
If you’ve been sued for a commercial matter, it’s critical to start collecting the evidence in your case early on. While your attorney will advise you what they need to build a strong case, there is often considerable documentation involved in these types of disputes. Gathering the paperwork and electronic data at the beginning of a case can save time later and prevent delays during the discovery process in litigation.
Depending on the type of case, you may need the following documentation:
- Accounting records
- Purchase orders
- Financial statements
- Emails, texts, letters, and other communications
- Contracts or written agreements
Other evidence in a commercial matter can include witness testimony, physical evidence, and demonstrative evidence.
Consider Alternative Dispute Resolution to Settle Your Commercial Lawsuit
Litigation isn’t the only way a commercial matter can be resolved. You should discuss alternatives with your attorney that can help you settle the dispute efficiently and quickly out of court. Alternative dispute resolution (ADR) methods, such as negotiation, mediation, and arbitration, are flexible and effective methods that can be used to settle business disputes without proceeding through the court process. Not only can ADR avoid the time and expense associated with litigation, but these methods can also be instrumental in preserving the business relationship you had with the other party.
Contact an Experienced New York Business Attorney
If you’ve been served with a commercial lawsuit, it’s crucial to have an experienced business litigation attorney by your side who can protect your rights and help you navigate the legal process. Offering personalized legal services and tailored solutions, Barnes & Barnes, P.C. handles complex commercial claims in the Commercial Division of the New York State Supreme Court, federal court, and arbitration forums. Contact us at (516) 673-0674 to schedule a consultation.
