California Litigation Blog : California Business Litigation Lawyer & Attorney : Jeffrey Huron Law Firm : CA Real Estate Law & Contract Disputes

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When you are sued, you should react just as a battleship when it comes under attack because you are under attack. Alarm bells should go off and you should immediately act to prevent or contain damage. The following actions will help protect you after you have been sued:

1. Contact Your Insurance Company. Review all of your insurance policies for possible coverage.  Immediately notify your broker and insurance company if you believe you might be covered under your policy. You may lose coverage if you delay notifying your insurance company of the lawsuit.  If you are covered, your insurer will defend you in the suit and hold your harmless from any loss.  If it is unclear whether your policy provides for coverage, the insurer may have to defend you or your business even it is later determined that your policy does not provide for coverage.  Therefore, err on the side of coverage and document your conversations with your broker and insurer.  Remember, however, your conversations with your broker are not privileged and may be used against you by the insurer in evaluating whether there is coverage.
2. Begin Preparing Your Defense.  Read and understand the complaint before talking to an attorney. Note your initial responses to the allegations and provide them to your attorney as soon as possible.  Gather all of your documents, including emails. Record and save any voice messages that may be useful to your defense. Talk to witnesses.  If they say anything that supports your defense, send them a letter or email confirming their statements to you.
3. Hire the Right Attorney.  Do not wait for the insurance company to hire an attorney for you. In many cases, the insurance company will take more than 20 days to accept or deny coverage. Give yourself time to hire the right attorney.  For example, hiring an attorney with no (or very little) trial experience is probably not the right choice, especially in high-stakes litigation. 
4. The Best Defense Is A Good Offense. Give serious thought about whether you have any grounds for asserting claims against the plaintiff. If you do, then you should countersue the defendant. Make sure you and your attorney thoroughly explore grounds for a countersuit because a countersuit will put the plaintiff on the defensive and give you leverage in settlement discussions.  
5. Stay Proactive.  Communicate with your attorney regularly. Make suggestions and recommendations concerning your defense.  Success depends on employing the right tactics at the right time as much as the merits of your defense. Let your attorney know if you do not agree with his or her defense tactics.  You know your adversary best and should provide as much insight as possible to your attorney about your adversary's motivations, strengths and weaknesses.