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What to Do if You or Your Business is Sued

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If a constable or process server knocks on your door and hands you a lawsuit with your name or your company's name as the defendant, do not panic.  A lawsuit is notification that someone has a dispute with you, and you will be able to resolve the dispute with good advice and representation.

You must file a formal response to the lawsuit in court within a certain number of days.  Therefore, read the document carefully and you will likely see a deadline for responding to the suit.  Next, find an attorney experienced in civil litigation.  Depending on the nature of the lawsuit, you may need an attorney who specializes in a particular field.  If you are sued by a former spouse, for instance, you should hire an experienced family law attorney.  If sued for personal injuries, then you need an experienced attorney who has defended personal injury claims.

You should come to your first meeting with the lawyer with several important items.  First, obviously you need to bring the lawsuit which you received.  This will inform the lawyer about the nature of the claims against you or your business, who is representing the plaintiff, and what deadlines exist.  Second, you also want to bring the following, if they apply:

  • Photographs of the location or site;
  • A long typed memorandum, addressed "To My Attorney," (so that it is confidential), which explains every detail of events which led to the lawsuit.  Include names, addresses and phone numbers of every witness who knows anything about the dispute, particularly those who may help you.  Include a description of what each witness can explain;
  • All related documents, particularly emails, which contain communications between the parties;
  • All supporting documents, such as contracts, employee files, calendars, account statements, or warranty claims;
  • Print out all computer files which have any relevant information; and,
  • A list of all documents or evidence which should be demanded from the plaintiff.

 

You should also bring your checkbook.  Unfortunately, defending a lawsuit is expensive and you are going to need to pay the lawyer a retainer.  For a small claims or Justice of the Peace lawsuit, a retainer between $1,000 to $2,000 is typical.  For suits in larger courts, retainers are typically $5,000 or more.  If you are sued in federal court, the retainer may be $10,000.

Upon being hired, the first action by a lawyer will be to file a formal answer to the lawsuit, denying liability.  The lawyer will also file counterclaims, if appropriate.  The lawyer will then draft and send discovery requests, demanding that the plaintiff provide copies of documents, lists of witnesses, and answers to certain questions about the lawsuit.  The plaintiff's attorney will do the same.  This process is called discovery.  The parties exchange information and documents about the dispute.

Next, the lawyers will take the depositions of the other parties.  Your lawyer will prepare you for your deposition by explaining how to answer questions, how to sit, what to wear, when to seek clarification, and how to avoid rambling answers.  A deposition is a process in which the parties and the lawyers meet at an office to answer questions.  Your lawyer, for instance, will ask questions of the plaintiff which the plaintiff must answer.  The questions and answers will be typed down by a court reporter, and sometimes videotaped.  The other attorney will ask you questions in the same manner.  Depositions are an important part of the case because the answers are admissible at trial, and because the questions often ferret out information useful to settling or trying the case.  Depositions, however, are expensive.  Not only will you pay the cost of your attorney's time, perhaps eight hours for a day of depositions, but also the court reporter's charges for typing the transcript at $5 per page.  The court reporter's charge for full day of depositions will reach $900.

Almost all civil lawsuits are now referred to mediation.  Mediation is a process in which both sides pay a fee to a neutral lawyer who will meet with the parties and their lawyers and attempt to forge a compromise.  The fees run $650 for a half day of mediation to $1,200 for a full day, per side.  Mediation is not binding; the mediator is not going to force a settlement on you.  However, the mediator will listen carefully to your position, and to that of your opponent, and identify strengths and weaknesses of each side.  The mediator will attempt to convince you and your opponent to compromise and reach a settlement.  Often the settlement will require the defendant to pay the plaintiff money, more than the defendant believes is deserved, and less than the amount to which the plaintiff believes he or she is entitled.

If the suit is not settled at mediation, the next step is trial.  Trial, of course, requires presenting the case to a jury or to the judge for decision.  There are advantages and disadvantages of a jury or a judge, but your lawyer will help you evaluate your options.  Trials are expensive because your lawyer will have to prepare carefully.  The trial itself will require one to three days in most instances to present, sometimes longer.  For each day in trial, a lawyer typically prepares three days.  Moreover, trials often lead to unpredictable outcomes.  Jurors sometimes base their decisions on emotions, which does not always lead to accurate results.

Therefore, when you are sued, the best advice one can receive is to set aside emotion and concentrate on resolving the dispute as rapidly and inexpensively as possible.  If you want to defend the case aggressively, then tell your lawyer.  He or she will certainly do so, as long as you are prepared and able to pay the money necessary to reach your day in court.

Information provided by Tyler, TX attorney James Volberding.

 

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