What to Do if Your Company is the Subject of a Civil Lawsuit

If you run a business, you’re more than likely going to face a civil lawsuit. Isn’t that what civil cases are all about? In civil cases, one party (the plaintiff) alleges that the other party (the defendant) committed an act that resulted in an unfair loss for the plaintiff. In most cases, the plaintiff would ask for some form of compensation in order to make up for the damages. In most cases, a process server assists those who need assistance with civil proceedings and investigations. Know more about hiring a process server.

There is a big difference between civil and criminal cases, which is why it is important to know what constitutes a crime in the first place if you find yourself confused. If a person is found guilty of a crime, they will face the consequences of the law. In contrast, civil cases seek to put an end to the dispute through some form of a resolution; typically, a monetary settlement or restitution is requested.

What causes civil litigation?

It is the purpose of a civil lawsuit to bring an end to a dispute between two individuals. The first step in resolving any disagreement is to pinpoint the wrongs that sparked it in the first place. Torts are the most common form of civil wrongdoing that small businesses face. Different types of torts include, but are not limited to:

Damages to property

When it comes to superbikes, for example, you’re a mechanic. For the owner’s race, a Ducati is brought into your shop for a thorough inspection. The bike crashed to the ground as you were working on it, resulting in its total destruction. To fix it, a part that was difficult to obtain was required. Besides the cost of your service, the bike owner is suing you for the damages you caused.

Torts of liability

Suppose you own a restaurant and one of your patrons developed severe allergies to a dish you served because of an ingredient you failed to disclose but claimed to be a “secret ingredient.” Your business is issued by a customer.

Defamation

In the example of a freelance photographer who worked with a company, you tweeted about the company’s incompetent team after the project was completed. Defamation lawsuits are common after a company sees a tweet they consider defamatory and claims it damages their brand’s reputation.

Liability for violating copyrights

Your town’s small coffee shop, for example, is a good example of this. Increasingly, your social media presence is bringing in new clients. If you’ve ever been to Starbucks, you may have noticed that one of their drinks has the same name as a popular drink at your cafe. Starbucks was notified due to your popularity and is threatening legal action against you for trademark infringement.

Negligence

For example, the mother of a student who attends your tutoring center came to confront you because her child is being held back a grade despite your help. The mother accuses you of failing to help her child and of failing to perform your duties, and as a result, she files a lawsuit against you to recover tutoring fees and a monetary settlement as compensation for the harm you caused her child.

A civil lawsuit can be avoided by having errors and omissions insurance in place. A lawsuit will go more smoothly if you have this on your side. It’s possible that your case will be dismissed, dropped, or settled before it even goes to trial.