The first days after service
When you are sued for breach of contract, the summons usually comes with a deadline to respond, and in New York that period is short and depends on how the papers were delivered. If no response is filed, the plaintiff can ask for a default judgment, which can lead to bank restraints or other collection steps. Write down the date and method of service and keep the envelope. Check whether your contract has an arbitration clause, because taking steps in court before raising it can sometimes give up the right to arbitrate. Also check any business insurance you carry, since some contract-related claims may trigger coverage or at least a duty to give notice.
Reading the claim against the contract
Compare what the complaint says with what the contract actually requires. Disputes often turn on whether the other side performed its own obligations first, whether a notice or cure provision was followed, whether the agreement was later modified, and whether a limitation of liability or damages cap applies. Gather the signed agreement with any amendments, emails and messages about performance, invoices, payment records, and anything showing the other side's own shortfalls. Preserve all of it, including texts on personal phones, and avoid deleting anything now that a case is pending. Do not contact the plaintiff to argue the merits; communications can usually be routed through counsel.
Defenses, counterclaims, and settlement
A response to the complaint is often the place to raise defenses, such as the claim being filed too late or the amount demanded being unsupported, and to assert any counterclaims you have against the plaintiff. Certain defenses can be waived if they are left out of the first response. Many contract suits settle, and an early, realistic look at both sides' positions helps decide whether to negotiate now or after documents are exchanged. Fee-shifting provisions in the contract can change the economics for both sides. Right away, we confirm the response deadline, review the contract and complaint together, and outline the defenses and counterclaims worth developing.
