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5 tips for companies facing legal issues

You've spent countless hours building your company. Now, you find out that you're facing a lawsuit. Your next steps could have a significant impact on what happens next. It's imperative that you consider how everything you do could affect the outcome of the case.

First things first: Contact your attorney. Discussing the matter with them can give you an idea of what steps you can take to protect your company. There are some things you can do even before you speak to your attorney that may be beneficial.

Tip #1: Don't destroy any documents or evidence

Once you know that legal action is pending or imminent, be sure that you don't allow documents or evidence to be destroyed. Think about anything that might be needed in connection in the case and ensure that it is secured. You may have to make a company policy so that everyone knows what's acceptable and what isn't. In some cases, taking pictures or videos of evidence might be appropriate if there's a chance it will be destroyed.

Tip #2: Don't discuss the lawsuit or anything surrounding it

Never communicate directly with the person who's filing the lawsuit against your company. All communication should be handled by your lawyer. You also can't discuss the matter with anyone else, including the media. It's best to completely avoid talking about the situation so that you don't say anything that could be used against you.

Tip #3: Start planning immediately

No matter how you hope the matter will be resolved, start working on your defense plan right away. This gives you the opportunity to review all options. It's usually best to work on a plan as if the case will go to trial, but remember that many cases are resolved before that stage.

Tip #4: Report the issue to your insurance

Some issues might be covered by your insurance. Make sure you report the problem to the company, so you know what coverages you have for the incident. You should review your policy because you may have to forward a copy of the lawsuit papers to the insurer.

Tip #5: Focus on your company

It's always best to protect your company as you're going through this. You can't let it slip down because of the lawsuit. By hiring legal representation, you can allow them to handle those matters while you continue to run the company and work to grow it despite the issue.

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Schwartz Law Firm
37887 W 12 Mile Road Suite A
Farmington Hills, MI 48331

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Phone: 248-579-4631
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