What to Do in Your First 72 Hours After Being Served with a Business Lawsuit
Getting served with lawsuit papers is unsettling. One moment you're running your business as usual, the next you're holding documents that could affect your company's future. Most people's first instinct is either to call the other party and try to talk things out, or to set the papers aside and hope the situation resolves itself. Both approaches are natural, and both can harm your case.
I've guided dozens of Seattle business owners through this situation, and the actions you take in those first 72 hours often determine whether you'll resolve this dispute efficiently or spend months in legal proceedings.
What Those Papers Actually Tell You
That stack of papers isn't just paperwork. It's an explanation of what someone believes you owe them and why. Strip away the legal jargon and focus on three questions: Who's suing you? What do they claim you did? What do they want from you?
You'll typically receive a summons and a complaint, possibly accompanied by supporting documents. The summons tells you how many days you have to respond to the court. In Washington state, that deadline is usually 20 days from service. It is important that you heed this court deadline. The complaint lays out the plaintiff’s version of events and what they're asking for.
Here's something that surprises many business owners: complaints often contain allegations that sound serious but may not hold up under legal scrutiny. Your job right now isn't to solve every accusation. It helps to know the scope of what you're facing. Save the detailed strategizing for when you have legal counsel.
The Deadlines That Matter Most
Courts operate differently than business negotiations. It is not often appropriate to ask for an extension because of a family emergency or travel plans. Should you miss your response deadline, the other party can win by defaulteven if their claims lack merit.
Calculate your response deadline and write it down on your calendar. Count every single day, including weekends and holidays. If your deadline falls on a weekend or court holiday, it’s possible you may get until the next business day to file a response, pending your local court rules.
Sometimes opposing attorneys may agree to extend deadlines as a professional courtesy, but you shouldn't count on this. Business owners may lose winnable cases because they assumed they had more time than deadlines specified.
Gathering Your Evidence While You Can
Consider collecting documents now, before the demands of litigation get overwhelming. Once the legal process has begun, you'll need to produce relevant documents regardless.. Gathering them early helps you see your position clearly and prevents important information from getting lost.
Focus on contracts, email chains, text messages, financial records, photos, videos, and any insurance policies that might provide coverage. Don't worry about perfect organization yet. Your goal is preservation. Make sure nothing gets deleted, lost, or destroyed.
You may want to look into placing a litigation hold. This means preserving all potentially relevant documents and instructing employees not to delete anything possibly related to the dispute. Cases may be harmed because someone "cleaned up" their computer files during the stress of early litigation.
Create backups of everything electronic and make copies of physical documents. You don't want to lose key evidence to a computer crash or accidental deletion.
Who to Call First (And Who to Avoid)
Your business attorney should be your first call, followed by your insurance company. Don't contact the other party or their attorney directly. Everything you say can become evidence against you, and you might accidentally harm your position while trying to be helpful or considerate.
Here's a reasonable order:
- Your business attorney if you have one, or start finding one
- Your business insurance carrier (many policies cover legal defense costs)
- Key employees or partners who need to know about the lawsuit
- Your accountant (if financial records will be necessary)
Avoid discussing the lawsuit on social media, with customers, vendors, or anyone who doesn't need to know. The fewer people involved in these conversations, the better your position.
If you don't currently have a business attorney, you may want to start calling firms that handle commercial litigation. Most will offer consultations to discuss your situation and explain your options.
Early Mistakes That Hurt Cases
More cases are lost through poor communication and evidence destruction than through bad facts. The biggest mistakes happen in those first few days when people aren't thinking strategically.
Common early errors include calling the other party to "work things out" (which creates evidence they can use against you), deleting emails or documents (which looks like you're hiding something), posting about the lawsuit on social media (providing ammunition for the other side), ignoring the lawsuit hoping it disappears (resulting in default judgment), and waiting too long to find an attorney (limiting your options).
Once you're sued, you're operating within a formal legal process with specific rules. The informal business relationship you had with the other party is over. Everything you say or do can become evidence.
Protecting Your Business During Litigation
Litigation takes mental energy, but your business still needs to function. The key is creating systems that handle both priorities without letting either suffer.
Set aside specific times to deal with lawsuit issues rather than letting them consume your entire day. Brief key employees about what they can and cannot discuss regarding the situation. Review your contracts with other parties to prevent additional disputes from arising. Check whether your insurance coverage applies to this situation.
For customers who might be affected by potential disruptions, a simple explanation works: "We're dealing with a business dispute that might require some of our attention over the next few months." You don't need to provide details.
When You Actually Need to Move Quickly
Remember that most business lawsuits develop over months or years, not days. While being served feels pressing (and meeting deadlines matters), panic isn't helpful.
However, some situations usually do need immediate attorney attention, even within hours: requests for temporary restraining orders or injunctions, attempts to freeze assets or garnish accounts, claims that could affect your professional licenses, allegations involving criminal conduct, and disputes that could result in personal liability.
For more typical events like business contract disputes, payment disagreements, and partnership conflicts, you usually have time to think strategically and respond thoughtfully.
What the Legal Process Actually Looks Like
Knowing the timeline ahead helps you plan both legally and practically. Most business cases tend to follow a predictable path:
Response period (20 days): You file your formal response to the lawsuit. Discovery (usually 3-6 months): both sides gather evidence and take depositions from witnesses. Mediation (often court-required): formal settlement discussions with a neutral mediator. Trial preparation (2-3 months or longer): if mediation fails, preparing for court. Trial (typically 1-5 days, but exceptions apply): presenting your case to a judge or jury.
Most cases settle during or after discovery, once both sides see the strength of the evidence. Fewer than 5% of business cases actually reach trial.
Your attorney can provide a more specific timeline based on your particular situation and current court schedules in your jurisdiction.
Your Next Steps
The most important thing you can do is take action rather than hoping the problem will resolve itself. Business lawsuits rarely disappear on their own, and delay usually worsens your position.
Remember to calculate your response deadline and mark it on your calendar. Start gathering relevant documents and communications. Contact an attorney who handles business litigation. Notify your business insurance carrier. Brief key business partners about potential disruptions.
The investment you make in proper legal advice during these first 72 hours often determines whether you can resolve the dispute efficiently or face months of expensive legal proceedings.
Moving Forward Thoughtfully
Being served with a lawsuit doesn't mean you've done anything wrong, and it doesn't mean you'll lose. You need to respond strategically and protect your interests through the legal process. The sooner you take appropriate action, the better your options become.
Every situation involves different facts, relationships, and legal issues. What matters most is getting qualified legal guidance so you can make informed decisions about how to proceed.
If you've been served with business litigation papers in the Seattle area, contact K&S Canon for a consultation about your response options and legal strategy.
Disclaimer: This information is for educational purposes only and does not constitute legal advice. Every legal situation is unique. If you've been served with a lawsuit, consult with a qualified business attorney to discuss your specific circumstances and protect your rights. Laws and procedures vary by jurisdiction and change over time.
