Introduction: The Letter No Business Owner Wants to Receive
Whether it’s a demand letter, a summons and complaint, or an email from a lawyer, learning that your business is being sued is a jarring experience. The initial emotions—shock, anger, confusion—are understandable. But the next steps you take can make all the difference in the outcome of the lawsuit, your financial exposure, and the future of your company.
Step 1: Don’t Panic, But Don’t Ignore It Either
In today’s marketplace, lawsuits are common—even for well-run, successful companies. Litigation doesn’t mean your business has failed. What matters most is how you respond.
Ignoring a lawsuit will not make it go away. In fact, failing to respond to a complaint can result in a default judgment, meaning the other side wins automatically. That can lead to frozen bank accounts, asset seizures, and damaged credit. Contact legal counsel immediately upon receiving notice of a claim or lawsuit. The earlier we’re involved, the more control we have over strategy and options.
Step 2: Assemble the Right Legal Team
Not all lawyers handle litigation—and not all litigators understand business. You want counsel who:
- Understands business operations and industry dynamics
- Has courtroom experience in Pennsylvania state and federal courts
- Can resolve disputes strategically, whether through settlement or trial
At The Lynch Law Group, we regularly defend clients in contract, employment, real estate, and shareholder disputes, and we work closely with internal teams to ensure litigation does not derail day-to-day operations.
Step 3: Understand the Type of Claim Against You
Lawsuits come in many forms. The first step is understanding what you’re being accused of and what’s at stake. Common claims in Pennsylvania business litigation include:
- Breach of contract (e.g., failure to pay, deliver, or perform)
- Tortious interference (e.g., disrupting another party’s business relationships)
- Fraud or misrepresentation
- Employment-related claims (e.g., wrongful termination, harassment, wage violations)
- Trade secret misappropriation
- Non-compete agreements
- Real estate or lease disputes
Every claim carries different legal standards, remedies, and defense strategies. As your counsel, we will review the allegations carefully and walk you through what they mean.
Step 4: Preserve Evidence Immediately
Once you’re aware of a lawsuit or potential legal action, you have a legal duty to preserve all relevant records. This includes:
- Emails and internal communications
- Contracts and financial records
- Text messages or messaging app logs
- Documents related to the opposing party or dispute
- Employee statements or HR files
Failing to preserve evidence can result in sanctions and adverse inferences in court, even if the evidence would have helped your case.
Pro Tip: Put a “litigation hold” in place across your business systems. We help clients craft tailored hold notices and ensure compliance with data retention laws.
Step 5: Evaluate Early Settlement vs. Full Defense
Once we’ve analyzed the claim and evidence, we’ll develop a strategy that considers:
- Risk of liability
- Exposure to damages or injunctive relief
- Reputational risk
- Cost of defense vs. cost of resolution
- The plaintiff breached the contract first
- A third party contributed to the harm
- You have valid counterclaims that strengthen your negotiating position
In some cases, early settlement is the most cost-effective and confidential solution. In others, it’s important to stand your ground to protect your rights, reputation, or market position. We help clients make informed, confident decisions based on their business priorities, not emotion or guesswork.
Step 6: Consider Counterclaims or Third-Party Liability
Sometimes the best defense is a good offense. As part of our analysis, we will explore whether:
Assertive legal positioning can turn the tide in your favor—especially when facing aggressive plaintiffs or frivolous lawsuits.
Final Thoughts: Litigation Is a Risk—But Also an Opportunity
Litigation is disruptive. But with the right legal team, it doesn’t have to derail your operations, in fact, it can be a turning point. Many clients emerge from litigation with stronger contracts, better compliance procedures, and more durable business relationships. Working with experienced legal counsel can help you protect your business from a future lawsuit by identifying and reducing the risks that lead to future litigation.
Whether you’re a business owner in Pittsburgh or managing operations across Pennsylvania, know this: You don’t have to face a lawsuit alone. And you don’t have to go to war if it’s not in your best interest. With the right legal partner, you can protect your business, control costs, and focus on what matters most—moving forward.
Need Legal Help? Let’s Talk.
If your business has been sued, or you think it may be soon, contact Jason Farrelly at 724-776-8000 or jfarrelly@lynchlaw-group.com today.
