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statements, etc.) that you think are
relevant to the case and necessary for
an attorney reviewing your case to see.
For example, if your case involves an
employment agreement, a good attorney
will likely ask to review that agreement
after speaking with you in order to
properly assess your case.
4. Prepare a chronology of events
and cast of characters.
This is an extraordinarily beneficial
exercise for both you and your attorney.
First, a chronology and cast of characters
helps your attorney understand the
sequence of relevant events, the
relevant players, and the context of the
allegations in the complaint. It is also
your chance to explain your side of the
story and significant details to your
attorney. Second, it saves you money. By
spending time (without your attorney)
preparing a chronology, you don't have
to pay your attorney to hear you tell bits
and pieces of the story in order to get
up to speed. Third, a chronology is a
great tool to help you think seriously and
carefully about the who, what, where,
when, why, and how of your case, all of
which helps prepare a proper defense.
5. Hire the right attorney for you.
You should choose an attorney that meets
your cost needs while not compromising
in representing your interests. Your
attorney should also have a style you
are comfortable with; some are very
aggressive (some may say abrasive),
while others are more deliberate or
even-tempered. Regardless of style, your
attorney must, however, be direct and up
front with you about cost and likelihood
of success. Any attorney who guarantees
results or is not candid with you should
be avoided. Your attorney also should
promptly respond to your inquiries and
keep you informed with updates in your
case. Once you hire an attorney, try to
meet in person at least once if you have
not already done so.
6. Preserve documents.
Many companies have policies in place
to discard old emails or documents
after certain time periods (such as
30 days). Once you reasonably foresee
your company may be involved in
litigation, all such destruction policies
must stop. In other words, you have a
duty to preserve all potentially relevant
documents and information. Important
note: this duty to preserve documents can
be triggered before a lawsuit is even filed
if your company has reason to believe it
may be sued, and the duty to preserve
includes not just paper but all electronic
documents and information as well.
7. Inform insurance carriers.
This may be both a requirement in your
industry or under your policy. Insurance
companies generally require claims to
be reported very soon after an incident.
In addition, it is possible your insurance
policy (such as a directors and officers
["D&O"] or errors and omissions
["E&O"] policy) can provide coverage
to help you offset the costs of litigation
(including attorneys' fees and expenses)
or a possible judgment. Check your
policy and consult your attorney before
contacting your carrier.
Don't:
1. Ignore or delay.
Closing your eyes, crossing your fingers
and praying the lawsuit "goes away on its
own" almost never works. If you fail to
respond to the complaint, you will be in
default and risk having a default judgment
entered against you.
2. Destroy evidence.
We've all seen movies where the bad
guys start shredding massive amounts
of documents in windowless rooms just
before they get caught. This is a terrible
idea and also illegal. Destroying evidence
(including deleting emails) can subject
you and your company to costly sanctions
including fines, striking certain defenses,
and admission of allegations and facts
favorable to the plaintiff and hurtful to
your case.
3. Try to defend the lawsuit on
your own.
First, while an individual is permitted to
represent him or herself (i.e., pro se), in
Georgia and in federal court, companies
are required to have an attorney represent
them in a lawsuit. Second, we've all
heard the expression: "He who represents
himself has a fool for a client." Your job is
to run your company, increase profits and
manage risk, not defend a lawsuit.
4. Call, email or communicate
with the plaintiff before consulting
an attorney.
You may think if you just call the plaintiff,
you can reason with them and convince
them to just drop the lawsuit. Or you may
feel like lashing out. Either way, this
is usually a bad idea. The plaintiff has
already spent money on an attorney to
review his/her case and draft a complaint,
meaning they are likely prepared for some
litigation. More importantly, everything
you say, especially in an email, can be
used against you in the lawsuit. For
example, that angry email or your attempt
to apologize can wind up later as an
exhibit at trial.
5. Neglect your business.
Litigation can be a time-consuming,
expensive cost of doing business, both
economically and emotionally. It can
be easy to let a lawsuit consume you
professionally and personally. The best
thing to do is to focus as much as possible
on continuing to help your business grow
and keeping up with your day-to-day
duties. It is important to do your best to
maintain your normal routine and keep
your focus on your business, both for
the health of your company and your
relationships with your customers and
employees.
Finally, a bonus don't is "Don't Panic."
Yes, being sued is unpleasant. It may
even be unfair, and hopefully you or your
company are never in that position. The
reality is, though, that lawsuits are a part
of doing business, particularly as your
company grows. Most of the time, though,
it is not the end of the world or the end of
your company. The key to navigating and
surviving being sued is having the right,
experienced attorney by your side.