Lawsuit Checklist

The following are some items to keep in mind if your business is sued:

• Preserve all documents that might later become relevant to the lawsuit or might lead to relevant documents.

• File a claim with your business liability insurance policy (or other similar policy) immediately so as not to waive your rights.

• Determine if you wish to utilize counsel provided by your insurance carrier (if any); your own private counsel; or a combination of both.

• Find out everything you can about the underlying facts of the claim at the earliest point. Avoid surprises later on.

• Remember that, with some exceptions, the only communications about the suit that are privileged are those with your attorney. Limit strategy discussions to your attorney and no one else without his or her involvement.

• Do not try to settle the suit directly with the adversary. Work through your counsel so that you do not inadvertently make admissions that can be quoted later in the lawsuit. Statements made by counsel are usually not admissible as evidence.

• Try to come up with a viable counter-claim, so as to give the adversary a down-side in continuing the lawsuit.

• Do not threaten to file criminal charges or a request for a regulatory enforcement action against your adversary during the lawsuit because that could be construed as a wrongful act of extortion.

• Do not terminate any employees with relevant knowledge before your counsel debriefs them.

• Try to ascertain if there are any legal issues in the case that are based upon facts that are undisputed. If so, you may be able to file a motion for summary judgment with respect to them.

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