What to Do in the First 48 Hours After Your Business Gets Sued
A process server just handed you legal papers. Your stomach drops. Someone is suing your business, and suddenly everything feels urgent and uncertain. What you do right now matters. The first 48 hours set the tone for your entire defense, so taking the right steps early can make a significant difference in how your case unfolds.
Don’t Panic, but Don’t Ignore It Either
Take a breath. Our friends at Ghassemian Law Group see business owners react to lawsuits in two problematic ways. Some panic and start making calls, sending emails, and trying to fix things immediately. Others freeze, toss the papers aside, and hope the problem disappears. Both responses create problems.
You need to act, but you need to act thoughtfully. Rushing into damage control mode without legal guidance can hurt your case. Ignoring the lawsuit guarantees a default judgment against you. Find the middle ground.
Read the Documents Carefully
Before you do anything else, read what you’ve been served. The complaint tells you who’s suing, what they’re claiming, and what they want. The summons tells you how long you have to respond.
You typically have 30 days to file a response after being served. That deadline is firm. Missing it means the court can enter a default judgment, which gives the plaintiff everything they asked for without you ever presenting your side.
Note these details:
- The plaintiff’s name and their attorney’s information
- The court where the case was filed
- Your exact deadline to respond
- The specific claims being made against your business
- The amount of damages being sought
Understanding what you’re facing helps you communicate clearly with your attorney and make informed decisions.
Contact Your Insurance Company
Many business owners forget this step. Your general liability, professional liability, or errors and omissions policy might cover the claims against you. Some policies include a duty to defend, meaning the insurance company provides and pays for your legal representation.
Don’t assume the lawsuit isn’t covered. Contact your broker or carrier immediately and report the claim. They’ll review your policy and let you know whether coverage applies. Even partial coverage can significantly reduce your out-of-pocket costs.
Preserve All Relevant Documents
Once you know litigation is happening, you have a legal obligation to preserve evidence. This includes emails, text messages, contracts, invoices, photographs, internal memos, and any other documents related to the dispute. Deleting or destroying relevant materials after a lawsuit is filed can result in serious sanctions.
Send a litigation hold notice to anyone in your company who might have relevant documents. Tell them to stop any routine deletion of files and to preserve everything connected to the matter. A business litigation lawyer can help you implement a proper hold if you’re unsure what it should cover.
Avoid Discussing the Case
This part is harder than it sounds. You’ll want to vent. You’ll want to explain your side. You’ll want to tell your business partner, your spouse, or your employees what happened.
Be careful. Conversations about pending litigation can become discoverable evidence. Emails you send complaining about the lawsuit could end up as exhibits. Social media posts expressing frustration could be used against you at trial.
Keep discussions limited to your attorney. That conversation is protected by privilege. Almost nothing else is.
Get Legal Help Immediately
Forty-eight hours isn’t much time, but it’s enough to find an attorney who handles business litigation and schedule an initial conversation. Bring your court papers, any contracts related to the dispute, and a brief summary of the background.
If you’ve just been served with a lawsuit and aren’t sure what to do next, a lawyer can review your situation and help you understand your options for responding.