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How do I defend or make a legal claim?

Monday, 30 August 2010 | By Patrick Stafford

If you receive a claim of legal action against your business, you need to make sure everything is in writing. Don’t discuss anything about the claim with the person who issued it over the phone – refer everything to writing.

 

Immediately contact a lawyer and determine whether the issue is serious or not. Have your representation draft a letter of reply in either case, and then receive counsel on your next step.

 

If you feel you have grounds for a legal claim, discuss the issue with a lawyer. They will advise whether you have any legal grounds for action and if the claim can move forward. Again, keep everything in writing and discuss every move you make with legal representation.

 

Be careful to determine whether the issue is worth the potential cost. Legal battles often drag on for months, and even though you may get back some court costs in the case of a win, lawsuits interrupt cashflow and can possibly bankrupt your business.