Starting a business takes a lot of hard work and dedication. You have to make great sacrifices with your time and energy and it could take a few years before you see the fruits of your labor. But, as you acquire and develop personal and professional tools, you become more refined. You learn how to lead and you discover how best to build relationships with other businesses, and you learn how to build an amazing team. However, sometimes there is a weak link in the team. You have a difference of opinion and things don’t go so well. Where you thought you had built a solid team until you discover one of your employees is trying to sue you. Ouch!
The temptation to get to the root of it all could have you wanting to confront them. It can be overwhelming and stressful, not just for you but other team members as well. It could also be harmful to your business reputation. This is why it’s important for you to get focused and go through the legal process as carefully as possible. If you are going through this, or you anticipate it happening, what’s the best way to deal with the legal proceedings, stay professional and protect your brand reputation? Here are a few things you need to keep in mind.
Go Over The Case With Legal Counsel
It’s vital at the beginning of the process to go over the papers with an experienced practitioner. There are numerous ones out there, but you want to a firm that has a good history of solving business litigation cases. Firms like the Ogletree Deakins Headquarters have a wealth of experience. When you are facing your reputation being tarnished, you need to consider utilizing a bigger or specialty firm. While it can be tempting to go for a smaller, home-grown one, you can’t guarantee they have the specialty practice. You want to choose a firm that can deal with your specific problem.
You will need to put either a preservation order or a litigation hold in place. This requires the company to hold all data pertaining to the case. It’s important to have as much documentation as humanly possible; not just papers, but voice messages, emails, photographs and so on.
Responding To The Complaint
Once you’ve been hit with a lawsuit, you need to submit a written response. You are given a deadline usually within 30 days to submit the response. You need to include an admittance or denial of the allegations, and your counterclaims against the plaintiff. Also be sure to state if you want a trial or to settle the case through an alternative means, such as an out of court settlement. This is a crucial decision which requires a lot of thought.
While you need to understand the exact nature of the claims, it’s worth taking the allegations into account in relation to the big picture. For example, if the claim is for a small amount of money, a part of the allegations can be proven, or if there is a way to settle the problem without plowing additional finances into it, this could be a better option for the business. You have to discuss with your legal counsel your options, such as the estimated costs throughout the process as well as exit strategies.
Coping With The Problem
Understandably, when being sued by a member of your team, you can take it personally. While the temptation can be to go straight to the person making the allegations. Once a lawsuit has been filed, you should not contact them or communicate with the plaintiff under any circumstances. All contact in regards to the case should be made through your legal counsel. Basically, avoid all contact until the case is resolved. However, in some cases, this is not possible.
If they work in the same office as you, you have to assert a professional relationship and make it abundantly clear that you won’t discuss the case. Some people can try to cope with the problem by addressing it personally, or even ignoring prompts to respond to the lawsuit in the hope that humanity wins all, but if this happens, the plaintiff wins the case. As a result, you are at the mercy of the judgment. Going through this can provide an abundance of distractions, not least on the business. But don’t lose sight of what you need to do. You’ve got a business to look after, and although you may harbor resentment, or even anger, it’s important to keep the matter separate.
Facing a lawsuit, especially when it is from a team member, is not easy. You have come to know that person, trusted them and even see them as your friend. You may feel a bit betrayed. When it’s all said and done, you may, or may not be able to repair the friendship.
Keep your head held high
It’s important you stay focused and remain calm throughout the process. After all, when this happens, all eyes are on you, inside the business, and from the perspective of any clients, you work with. Consult legal counsel before you move forward and respond to the complaint honestly and fairly. Keep your head held high, maintain your integrity, and remember this is just a bump in the road.
Carolyn R. Owens has over 25 years of proven experience and serves as a Career Strategist, Executive and Leadership Coach. She is the President of Infinity Coaching, Inc. where she can help you up-level your skills, so you can up-level your income, career, business or life. Infinity Coaching, Inc. provides coaching, organizational training, personality assessments, and a signature program, the Infinity Coaching Inner Circle. Carolyn is certified to give both The Energy Leadership Index Assessment and Myers Briggs Type Indicator Assessment. You can find out more about both assessments and other products and services at https://infinitycoaching.net.
