Why would a company sue you?

Lawsuits commonly arise against companies when: Suppliers or consumers believe that the company has breached a contract. Shareholders believe the company misled the public about the company’s financial situation. Companies or individuals claim your organization has infringed upon their intellectual property rights.

What kind of lawsuits do small businesses get?

Common types of business lawsuits include breach of contract, slip-and-fall accidents and other premises liability, and discrimination. This article is for small business owners who have been sued, or who worry about being sued.

What should you do if your business is sued?

Many of our experts reminded business owners that anything they say regarding the lawsuit can be used against them. For this reason, you should not attempt to contact the plaintiff before you’ve thoroughly reviewed the suit. From there, all communications with the opposing side should be conducted through your law firm and the plaintiff’s.

What happens if you get sued by an employee?

Whether it has been filed by an employee, client, vendor or even another business, a lawsuit against your company will likely cost you a lot of money, whether you win or lose.

Can a client Sue my golf course business?

Should a client sue your landscaping business, your golf course business will be protected. Likewise, if your golf course has a few down years, your landscaping business won’t have to share in any of the liability. The main downside with this approach is that it involves additional maintenance fees and paperwork.

What should I do if my business is sued?

Thus, if your business has more value in assets than the potential judgment amount, it may be worth contesting the lawsuit or trying to reach a settlement. If not, then you can explore whether you can simply close up shop and move on.

Can a company file a lawsuit against an employee?

Employment law offers many opportunities for where employees can sue their employers. On the flip side, it is much more difficult for a business to find cause for a legal case against an employee. A couple areas where an company may have a case against an employee are listed below.

Can you sue someone for giving your business a bad review?

Another example is a lawsuit against someone who is giving your business a bad review (yes, you may be able to sue in this case). While most employment lawsuits are against employers, you can sue an employee for such things as breach of contract and damages. If the amount of money is small, you may be able to take your case to a small claims court.

Can a company sue an employee for quitting a job?

If the employee fails to comply to the contract, the company can sue. Two types of contracts that can be inappropriately breached are non-compete or non-solicit agreements. Although most jobs are “at-will,” an employee’s quitting may leave the business in the lurch.