For many small business owners, being served with a lawsuit feels like a gut punch. You’ve poured time, money, and energy into building something of your own, and now you’re staring at legal papers that seem to threaten all of it. The first reaction is often panic — and that’s normal. But lawsuits are not death sentences for your business. With the right steps, taken in the right order, you can protect yourself and your company’s future.
Step One: Take a Breath and Read the Papers
The first thing I tell any business owner in this situation is to take a deep breath. You don’t have to figure everything out in the next ten minutes. Sit down somewhere quiet, open the envelope, and read the documents carefully. Make note of the names of the parties, the court where the case is filed, and the date you received it.
Look for a deadline to respond — in many jurisdictions, it’s 21 days, but it can be shorter. That date is your first priority. Missing it can mean the other side wins automatically. You do not want that to happen.
Step Two: Call an Attorney — Sooner Rather Than Later
The sooner you get legal guidance, the more options you have. Even if you think the claim is baseless, an attorney can help you understand what the lawsuit is really about and what your obligations are. We can help you figure out whether insurance might cover the claim, whether the court even has jurisdiction, and whether there’s an opportunity to resolve things quickly before costs spiral.
You don’t need to have every detail sorted before you make that call. Bring the lawsuit, any related contracts or emails, and a basic outline of what happened. From there, we can help you prioritize what to do next.
Step Three: Preserve Every Relevant Document
The moment you are sued, the law expects you to preserve any records that might relate to the dispute. That means emails, contracts, invoices, text messages, notes, and even social media posts. If you destroy or alter anything — even accidentally — you could face additional legal trouble.
Create a dedicated folder, physical or digital, for everything connected to the case. Put copies of key contracts, correspondence, and financial records there. If you’re not sure whether something is relevant, save it anyway. Your lawyer can decide later whether it matters.
Step Four: Keep the Business Moving, But Watch Your Words
A lawsuit can be distracting, but your employees, customers, and vendors still need you. Keep your day-to-day operations running as normally as possible. At the same time, be careful about what you say. Don’t discuss the case with the opposing party, post about it on social media, or vent to people who aren’t part of your legal team. Loose comments can make their way into court and undermine your defense.
If employees know about the lawsuit, remind them not to speculate or make public statements. Maintaining professionalism during this time sends a message to your clients and your community that you are handling things responsibly.
Step Five: Think Beyond This Case
While your focus will naturally be on getting through the current lawsuit, it’s also worth using this moment to look at the bigger picture. Ask yourself: Are your contracts clear and protective enough? Are your employee policies up to date? Do you have the right insurance coverage?
One of the silver linings of a lawsuit — if there is one — is that it can highlight vulnerabilities you can address before they cause bigger problems down the road.
Final Thought
When you’re served with a lawsuit, it’s easy to feel like the walls are closing in. But most disputes are manageable if you respond promptly, preserve evidence, and get sound legal advice. My role is to help small business owners take that initial panic and turn it into a plan — step by step, with a focus on protecting the business they’ve worked so hard to build.
About the Author: Nick Harrison is a Washington, D.C.-based attorney who advises small businesses, nonprofits, and servicemembers facing high-stakes legal challenges. Known for his calm, practical approach, Nick helps clients navigate complex disputes while protecting what they’ve worked hard to build.
