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What to do when facing business litigation

No one wants to run a business fearing that a lawsuit could be filed against it at any moment. When starting a small business, owners typically do what they can to prepare for every eventuality. Regardless of how well prepared an Arizona business owner may be, it can still be a shock when the company is faced with business litigation.

It can be a challenge to figure out where to start once the company is notified of a lawsuit. Since certain deadlines govern the flow of any civil court action, it is usually a good idea to seek the advice and assistance of an attorney as soon as possible. Missing any of these deadlines could result in dire consequences.

Some business owners may not believe that their insurance company will cover the claim, but that may not be true. Even if the policy does not cover any judgment that may be awarded against the company, attorneys' fees and court costs may be covered. The sooner the insurance carrier is contacted, the better off the business will be.

These are just two places to start when an Arizona small business is faced with business litigation. The circumstances surrounding the lawsuit will need to be investigated in order to determine what options are available and how to proceed in order to obtain the best outcome for the company. Numerous business and legal decisions will need to be made in order for that to happen. Ultimately, any course of action taken will need to be the one that gives the business the best chance of continuing to thrive during and after the lawsuit.

Source: tennessean.com, "Seven things business owners must do when facing a lawsuit", Keith Dennen, Oct. 16, 2015

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