My Georgia business was sued in Atlanta. What should I do?
Disputes inevitably arise in the course of business relationships, which sometimes result in lawsuits being filed. We routinely receive calls from Georgia businesses looking for guidance on what actions to take once they have been served with a lawsuit that was filed by an opposing party, who is typically called a Plaintiff. Below are some general tips and guidelines that all such businesses should consider:
1) Deadlines are extremely important: The party that has been sued, commonly referred to as the Defendant, will be served with a Complaint which contains the facts and allegations that form the basis of the lawsuit. Once a Georgia business has been served with a lawsuit, it is important to keep timeframes in mind. Generally, the Defendant has 30 days to file an Answer to the Complaint from the date when the Defendant actually received the Complaint. This deadline can be shorter depending on the court involved or the type of lawsuit that was filed. The Complaint will be accompanied by a Summons form, which should directly specify the number of days that the Defendant has to file an Answer. Though the Answer is typically the first deadline that a Defendant should be concerned about, there are also additional deadlines in the legal process.
2) Consult an attorney: Even if you plan to represent your Georgia corporation in a lawsuit, it is advisable to at least have an initial meeting with an attorney to discuss procedural issues and how to best represent your business. Also you need to determine if you can even legally represent your business as some courts in Georgia require a business to be represented by legal counsel. If your business falls into this category and you do not seek representation, the Plaintiff can seek immediate judgment against your business, which the court will likely grant.
3) Prepare and file an Answer: This Answer should: (a) contain any defenses that the Defendant has to the allegations in the Complaint, (b) directly answer the specific allegations contained in the complaint, and (c) allege any claims that the Defendant has against the Plaintiff. There are many possible defenses to a lawsuit, which can range from the Plaintiff’s failure to specify what the dispute is about to bad acts that the Plaintiff has committed which should void any recovery. As for the specific allegations of the Complaint, the Defendant should be sure admit them where they are true, deny them where they are false, offer any explanation necessary or directly address them in some other manner. Also, if the Defendant feels that the Plaintiff should be liable to it for some action or non-action, it should specify the related facts and allegations in what is commonly called a Counterclaim.
4) Get facts straight and collect evidence: We generally advise our clients to conduct all important business communications in writing and to document all important events as they occur in order to prepare for any future conflicts. This is because the specific facts involved in a lawsuit can make or break a case, and a good paper trail can be invaluable. If your business has not been that diligent about documenting things, then try to get as much proof of your position together as possible.
5) Keep the channels of communication open: The majority of lawsuits end in settlement prior to a final trial. If your business would like to settle before trial, think about what settlement offers you would like to present to the Plaintiff.
