Receiving a lawsuit notice for your business can be overwhelming and scary. Whether it’s a state or federal lawsuit, understanding your obligations and taking prompt action is critical. At Suri Law, we guide New York businesses through these challenging situations to protect their interests and minimize risk.
Step 1: Take the Lawsuit Seriously
Even if the claims seem minor or unfounded, it’s extremely important not to ignore the notice. Failing to respond can result in a default judgment, where the court automatically rules in favor of the plaintiff or claimant because you failed to respond.
What to Look For:
- Summons and Complaint: This document outlines who is suing whom, the claims being made, and the timeline for responding.
- Deadline for Response: In New York, you generally have 20 days to respond to a state lawsuit if it is served in person and 30 days if it served by other means. Federal cases usually allow 21 days after service, depending on the court.
Step 2: Understand the Importance of Legal Representation
In New York State courts and federal courts, businesses generally cannot represent themselves and need to retain an attorney. It is crucial to retain counsel as soon as possible since it is generally not acceptable for a business to appear pro se (representing itself).
Failing to hire counsel in New York state or in federal cases can result in:
- Dismissal of motions or defenses
- Default judgments
- Potential professional liability for managers or directors
Step 3: Gather and Preserve Relevant Information
Your lawyer will need access to:
- Contracts, agreements, and invoices related to the dispute
- Emails, communications, and internal memos
- Financial records or transaction history
- Employee or customer records (if applicable)
- Electronic information like video footage, photos, texts, meta data
Preserving evidence and documentation is critical. Spoliation, or destruction of evidence, can negatively impact your case and can result in fines from the court.
Step 4: Respond Within the Required Timeframe
Your attorney will help you file the appropriate response, which may include:
- Answer: Admitting or denying allegations and asserting defenses
- Counterclaims: If you believe the plaintiff is liable to your business for anything
- Motions: To dismiss the case or challenge procedural errors
Timely and strategic responses demonstrate to the court that your business is proactive and organized.
Step 5: Consider Settlement Options
Many lawsuits are resolved before trial. Your attorney can negotiate settlement agreements or alternative dispute resolutions like mediation. Settling can save time, reduce legal costs, and limit reputational risks, though we are always prepared to litigate cases to the end. Part of the reason so many cases settle is that it is one of the few ways for there to be certainty in the outcome for all parties since there is always risk involved with trial.
Step 6: Plan for Trial if Necessary
Unless and until your case is settled with a final, signed settlement agreement, your lawyer will diligently guide you through pre-trial discovery, motion practice, and trial preparation. Experienced legal counsel ensures that your business:
- Prepares to present strong evidence
- Preserves procedural rights
- Requests relevant information and documents from the other side during discovery
- Fully prepares to put forth a comprehensive defense and, if needed, a case for counterclaims
- Takes advantage of procedural rights and remedies to put your business in a more better litigation position
- Has realistic expectations about financial obligations associated with litigation so that you can make a proper cost-benefit analysis
It is important to remember that your case may settle at any point from the discovery phase up until when the judge or jury render a verdict.
Why Choose Suri Law PLLC
At Suri Law, we understand the stakes of commercial litigation. We provide strategic guidance for:
- State and federal civil lawsuits
- Contract disputes, breach of fiduciary duty, and commercial litigation
- Risk mitigation and proactive compliance advice
With attorneys serving Queens, Long Island, and the greater New York City area, we are committed to protecting New York businesses with a combination of legal expertise and practical business insight.
Key Takeaways
- Do not ignore the lawsuit—deadlines are strict.
- Hire an attorney immediately.
- Preserve all relevant documents and evidence.
- Respond strategically and timely to protect your rights.
- Consider settlement options to reduce risk and cost.
Get Legal Help Today
If your business has been served with a lawsuit in New York state or federal court, you need experienced legal guidance immediately. Suri Law PLLC is here to protect your interests, guide you through every step of litigation, and help you make informed decisions for your business.
Call us at (212) 444-8244 or contact us online to schedule a consultation today.