As a small business owner, you are constantly swimming in a sea of risk. That means there may be a time when you will find yourself being slapped with a lawsuit. How should you respond when that momentous day arrives? Fehzan Ali wanted to pass on some of the tips he used to survive a joint suit from both Facebook and his local attorney general (can you imagine how scary that must have been?!)
I cannot express to you how important his advice regarding hiring a competent attorney is. Seriously hire the very best you can afford. In a lawsuit, you feel powerless because you have no expertise in this arena so you have to rely completely on your lawyer. Knowing you are in good hands will help give you some peace of mind. That being said, also be proactive with your attorney. Have him / her go over the nature of the case being brought, give an objective explanation of whether the law is on your side or not and then lay out what he believes is a winning strategy.
Mr. Ali is also right - referrals are the best way to find the most effective lawyers. If you can’t get any referrals, find local small business attorneys in your area. Once you narrow down your choices, you are NOT done! Do your own independent research of their practice and check their references. Ask about your attorney’s responsiveness, willingness to explore all avenues of the case (no just taking shortcuts to settle quickly) and check public records to get an idea of his success rate for cases that actually go to trial. Most cases never go to trial but, hey you never know. Mr. Ali also suggests that you have a very generous budget for the suit because, let’s face it, lawyers are expensive.
As a corporate lawyer, my work (and this site) is geared towards minimizing risk so that you can avoid a lawsuit. That is why I created the cheat sheets, provide access to free contract templates and keep you up to date on the latest small business legal news. Though we always recommend that you work with a lawyer, our goal is to give you an understanding of the issues and the actions that need to be taken so you can minimize the time spent with your attorney. (Remember! We bill by the hour for every thought, discussion or action taken on your case).
Regardless of all the preventative actions you may take, you may still end up facing a lawsuit. If that day ever comes, now you have a blueprint for how successfully deal with it.
