What Is A Frivolous Business Lawsuit?

A frivolous lawsuit is a suit without reasonable basis for filing. Contrary to popular belief, a lawsuit has to be dismissed or you have to obtain a judgment before you can sue back as a frivolous lawsuit. Telling the party that their lawsuit is frivolous is not going to solve your problem. Businesses do get hit with frivolous lawsuits and you do have to spend some money to defend yourself. At the end of the day, if you can prevail, you can actually go after the lawyer who drafted the lawsuit, if they don’t drop the case and the party that was suing you. They need to have a real reason to sue you. However, what you think of as frivolous may not be what a judge thinks is frivolous.

What Does My Attorney Do After My Business Has Been Served With A Lawsuit?

Typically, your current business attorney is a transactional attorney, who helps you out in your business. They’re drafting contracts, forming your business, drafting agreements with the owners of the business, advising your business, and helping you with corporations and trademarks. You’re going to need to contact a business litigation attorney if your business is sued. Even if you have a litigator in-house, it doesn’t mean they have the same experience that an experienced law firm possess. You have to get an early assessment as quickly as possible. Find an attorney who deals with business lawsuits on a regular basis, not someone who has done this once in a while. Experience can save a lot of time, effort and in some cases money.

As far as contacting the other side, if you’ve been served, you can do that but there’s a risk factor. When you’re contacting the other side, remember that a lawsuit has been filed. Everything you say can and will be used against you. An attorney who represents the other side cannot contact you once you hire an attorney and notify the attorney that you have hired the attorney, your attorney can’t contact the other side. Attorneys can only contact the other side’s attorney. However, the client can speak to the other side such as an officer with the business suing your business. If you do contact the opposing side, remember that you’re not a lawyer. You might say something you think is going to help you and it will come back and hurt you, down the road.

If you want to work out a settlement, it is best to do so through your attorney. As far as continuing to run your business, giving up your operation is usually the worst thing you can do, even if you’ve committed a mistake. You need an attorney to assess the facts for you, inform you of the issues, and let you make your own decision.

For more information on Frivolous Business Lawsuits In California, a personalized case evaluation is your next best step. Get the information and legal answers you are seeking by calling (310) 203-2249 today.