If your company has been served
A summons starts a clock, and the time to respond is short and depends on the court and how the papers were served. Missing it can lead to a default judgment, which is much harder to undo than to prevent. In New York, a corporation generally must appear in court through a lawyer rather than through an owner or employee, with limited exceptions such as small claims, and many other states follow a similar rule. Check whether any insurance policy might cover the claim, including general liability, professional liability, employment practices, or D&O coverage, and notify the carrier promptly, because late notice can jeopardize coverage. It is usually wise to hold off on calling the plaintiff to talk it through until you have spoken with counsel.
If you are considering filing one
Before suing, it helps to know whether the defendant can pay a judgment, whether your contract requires arbitration or sends disputes to a particular court, and whether it entitles the prevailing party to legal fees, since in the United States each side usually pays its own fees unless a contract or statute says otherwise. Larger commercial disputes in several New York counties may go to the Commercial Division of the state Supreme Court, which has its own rules and tends to move on a managed schedule. A demand letter sometimes resolves the matter, and sometimes it simply alerts the other side to move assets or file first. When to send one is a strategic choice, not a formality.
Records and early strategy
Once a dispute is likely, preserve relevant documents, emails, texts, and accounting records, and suspend routine deletion for the people involved. Gather the contract, the invoices, and the communications that show how the relationship went wrong. At the outset we map the claims and defenses, whether a counterclaim exists, what the case is likely to cost to litigate through each stage, and whether mediation or an early settlement makes sense. We also discuss how the lawsuit might affect your lenders, customers, and any pending sale or financing, since those relationships sometimes matter more than the dispute itself.
