What To Do When Your Business Gets Sued

Being sued can feel overwhelming, but taking immediate and informed steps is critical to protecting your rights. Whether you’re an individual or a business owner in Ohio, there are specific legal guidelines to follow after receiving a summons or complaint. Understanding the timeline and consequences of not responding properly can help you avoid harsh legal judgments.

Understanding the 28-Day Rule

When you or your business is sued in Ohio, the first important thing to know is the 28-day deadline. From the moment you receive the complaint or summons, either through certified mail or direct service, you have 28 days to file a response. This response can be in the form of an “answer,” which is your formal reply to the allegations made against you, or a motion that addresses the lawsuit.

For individuals and businesses alike, failing to act within these 28 days can have serious consequences. If no action is taken, the plaintiff (the person or entity suing you) can file a motion for default judgment. This allows the court to rule in their favor without you having the chance to defend yourself, which can result in costly penalties or judgments against you.

What Happens If You Miss the Deadline?

Missing the 28-day window does not only mean that your side of the story may go unheard. In legal terms, the plaintiff can move for a “default judgment,” meaning the court will make a ruling against you based solely on their claims. This could lead to garnishment of wages, liens on property, or a significant financial judgment that could harm both individuals and businesses.

Even if you're unsure about the details of the lawsuit or think there might be a mistake, consulting with a lawyer immediately is crucial. Legal counsel can help navigate through the process, explain the next steps, and work on filing appropriate responses on time.

Exceptions: Small Claims Court

There is one exception to the 28-day rule: small claims court. In small claims cases, there is no requirement to file a formal answer. The case goes directly to a hearing. However, it is still a good idea to be prepared by consulting legal counsel and gathering any necessary documentation or evidence that supports your side.

Steps to Take After Being Sued:

1. Don’t Panic, But Don’t Delay: Take the lawsuit seriously. Immediately note the date you received the complaint and calculate your 28-day deadline.

2. Review the Documents: Carefully read through the complaint and summons to understand the nature of the lawsuit.

3. Consult a Lawyer: Seeking legal advice is crucial. Whether you’re an individual or business, a lawyer can guide you through the response process and ensure that no deadlines are missed.

4. Gather Evidence: Start compiling any evidence, documents, contracts, or communications that could support your defense.

5, Prepare to Respond: You can either file an answer denying or admitting the claims, or your lawyer may file a motion to dismiss if the case lacks merit.

Conclusion

Being sued can be a stressful experience, but knowing your rights and obligations under Ohio law can help you respond correctly. Whether it’s an individual lawsuit or a business litigation case, the 28-day deadline is crucial in protecting your legal standing. Failing to meet this deadline can result in default judgments that negatively impact your personal or business finances. Make sure to act swiftly, review the summons carefully, and seek professional legal assistance to guide you through the process.