Finding out someone is suing your business can turn everything upside down. It is completely normal to get upset and worried, but you should take some time to calm down before making any moves.
Business News Daily explains that there are a couple of important things you want to keep in mind before you start to react to a business lawsuit.
Do not communicate
Your first instinct may be to contact the other party and try to talk things through. It is too late for that. You should never communicate with the other person. If you must interact with him or her, do not discuss the lawsuit.
Anything you say at this point is something the other person could use against you in court. You may think you can come to an agreement outside court, which may still happen, but you cannot try to do it without understanding the legal aspects of the situation.
Review the paperwork
The first thing you actually want to do is review your paperwork. Make sure everything in it is accurate, including the names and addresses listed. Any errors might open the door to seeking a dismissal.
You want to look over what the other party is alleging. Note anything that does not seem right or true.
You should also collect any documents you have that could relate to the case. You want to preserve these. If you damage anything, you could get in trouble by the court for destroying evidence.
The bottom line is to not panic when you face a lawsuit. Most of them settle outside of court, or the court ends up dismissing them. Keeping a calm head will help you have the best chance for a good resolution.