Why would a business get sued?
A lawsuit can come from a variety of sources, from customers, current or former employees, and even other businesses. These lawsuits may be filed for any number of reasons, and the most common ones include:
- Breach of contract
- Harassment, including bullying, intimidation, physical or sexual harassment
- Discrimination
- Intellectual property (IP) rights
- Accidents, including slip-and-fall accidents, or accidents caused by using your company’s products
- Premises liability
- Professional negligence
- Misleading information or false advertising
Most of these situations can be avoided by tackling the problem at the root and preventing the situation before it arises, with proper protocol and training. Harassment and discrimination against customers and employees on any basis are serious offences under Victorian law, and you should make sure all your employees undergo proper training to understand the importance of a safe workplace. Similarly, refusing a customer on a discriminatory basis can lead to severe damage of your business’s image if it gets caught up in a lawsuit.
In Victoria, workers can claim compensation for a slip-and-fall accident or premises liability occurring to them at your business. It is important that you make provisions to settle these claims with your employee to reduce the risk of your business being sued.
The structure of your business setup also affects the degree of liability when faced with a lawsuit. In a corporate setup, the director of the company may not be responsible for all legal cases to do with the company. But for small business owners, they would face direct legal responsibility.
How do you respond to a lawsuit against your business?
Once you have consulted with your business lawyers in Melbourne, there are a few options to consider. Your legal team will help clarify the exact nature of the lawsuit, the seriousness of the claims and the potential costs involved. They will handle all the paperwork you need and interpret the charges from the plaintiff. Most importantly, ask your lawyer if there is a potential exit strategy at your disposal.
You will need to submit your written response to the lawsuit by the deadline specified, and this is best left to your legal team to draft a statement that is clear and concise without being incriminating. This includes your admittance or denial of the allegations against your business; any defence your business lays out; and how you want the lawsuit to be resolved. Most parties would rather have the settlement resolved out of court, but more serious allegations will have to be decided by a jury trial.
It is imperative that you do NOT attempt to communicate with the plaintiff directly. Leave all interactions to good business lawyers in Melbourne, as anything you say regarding a lawsuit can be used against you in court.
Most importantly, always be honest and direct with your lawyers about the facts of the case. Anything you try to cover up will eventually make itself known as the court process drags on, and you cannot have your legal team caught by surprise. By enlisting their services, you are not just resolving a sticky situation, but protecting the image of your business and keeping it on track while the settlement is resolved.
Be prepared for any situation with P&B Law
We understand that the consequences of your business being sued can be devastating. But with the right business lawyers in Melbourne, you can guard against major damage, keep your business in its best interests, and maintain a calm head through the process. At P&B Law, our expert legal team is here to help you in the unfortunate event of facing a lawsuit. Contact us today to learn more.