Getting served with a lawsuit related to a business dispute can feel overwhelming, especially if you believe the allegations are unfounded or exaggerated. Whether you’re a small business owner, independent contractor, or partner in a commercial venture, it’s important to act quickly and strategically. In New Jersey, how you respond in the early stages of a business dispute lawsuit can have a major impact on the outcome.
At the Law Offices of Howard N. Sobel, we regularly represent individuals and businesses across South Jersey in commercial litigation matters. If you’ve been sued for a business dispute in NJ, here are the key steps you should take right away.
1. Don’t Ignore the Complaint or Summons
Once you’ve been formally served with the summons and complaint initiating the civil action, the clock starts ticking. In New Jersey, you generally have 35 days to respond. Failing to respond on time can result in a default judgment against you, meaning the court may rule in favor of the plaintiff simply because you didn’t show up.
Even if you think the claims are baseless or the plaintiff is just trying to intimidate you, do not ignore the lawsuit. Take it seriously and respond appropriately.
2. Contact a Business Litigation Attorney Right Away
The most important step you can take after being served is to consult with an experienced business litigation attorney. Lawsuits involving business disputes often include complex contract language, factual disagreements, and legal defenses that require a thorough understanding of New Jersey law.
Even if the lawsuit seems minor, trying to handle it on your own can put your business at risk. An attorney brings legal insight, objectivity, and procedural experience that are essential when navigating these situations.
An attorney can:
- Evaluate the validity of the claims.
- Help you understand your legal rights and obligations.
- Draft and file your response (called an "Answer").
- Determine if there are counterclaims or defenses available to you.
- Begin preparing your defense strategy.
Working with counsel early gives you the best chance of protecting your interests and resolving the matter efficiently.
3. Preserve All Relevant Records and Communications
Once litigation is underway, it’s crucial to preserve all documents, emails, text messages, contracts, invoices, and notes related to the dispute. Under New Jersey law, parties involved in a lawsuit are expected to retain relevant evidence and avoid any appearance of destroying or altering information.
Be proactive: Organize your files, back up your emails, and create a timeline of events. This helps your attorney evaluate the facts and identify weaknesses in the opposing party’s case.
4. Avoid Direct Communication with the Other Party
It may be tempting to call or email the person suing you, especially if you previously had a working relationship or want to resolve the issue informally. But once a lawsuit has been filed, communicating directly with the opposing party can backfire.
Instead, let your attorney handle all communications. Anything you say or write could be used against you. Keeping your distance protects your legal position and helps avoid misunderstandings that can complicate the litigation.
5. Understand the Nature of the Business Dispute
Business lawsuits can arise from a variety of conflicts, including:
- Breach of contract
- Disputes between business partners or shareholders
- Non-payment for goods or services
- Allegations of fraud or misrepresentation
- Vendor or supplier disagreements
Understanding the specific nature of the lawsuit helps shape your legal strategy. For example, if you’re being sued for breach of contract, your attorney will evaluate the contract language and performance history to assess your liability and potential defenses.
6. Explore Settlement or Alternative Dispute Resolution (ADR)
Not every business lawsuit needs to go to trial. In many cases, it makes sense to resolve the matter through negotiation, mediation, or arbitration. These options can be faster and more cost-effective than traditional litigation.
A knowledgeable attorney can help you weigh the pros and cons of settling versus continuing with litigation. Sometimes, a strong response early in the case can lead to a favorable settlement before the case reaches court.
7. Protect Your Business Reputation
Business disputes don’t just carry financial risk, they can also damage your reputation. How you respond to the lawsuit may affect client relationships, future contracts, and public perception.
By working with legal counsel and taking a proactive, professional approach, you can minimize the reputational fallout and keep your business on stable footing throughout the dispute process.
8. Prepare for the Long Haul
Commercial litigation in New Jersey can take time, especially if the dispute is complex or involves multiple parties. Be prepared for discovery (the exchange of information between parties), depositions, motions, and possibly trial.
Your attorney can walk you through the timeline and help you plan for each stage. The more prepared you are from the outset, the better your chances of achieving a favorable resolution.
Your Next Step: Defend Your Business with Confidence
If you’re being sued for a business dispute in NJ, don’t wait to seek legal help. At the Law Offices of Howard N. Sobel, we represent clients in Voorhees, Voorhees, Marlton, Mount Laurel, Haddonfield, Camden County, Burlington County, Gloucester County, and across South Jersey.
We understand the stress that litigation can place on your business, and we’re here to help you respond strategically, defend your rights, and protect your financial and professional future.
To schedule a consultation, contact our office today. We’ll help you move forward with clarity and confidence.
Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Reading this article does not create an attorney-client relationship. Every legal matter is unique, and you should consult a qualified attorney for advice specific to your situation in New Jersey.