I’m being sued. What do I do?

The court claim needs more than an angry reply

A business owner receives a court claim from a former customer. The owner believes the complaint is unfair and wants to call the customer immediately to argue. At the same time, the business is busy and the paperwork is easy to set aside. The urgent task is not to win the argument by phone. It is to understand the formal claim and protect the opportunity to respond.

Identify what has actually arrived

Read the document heading, court, parties, claim number and orders sought. Distinguish court papers from a solicitor's demand or a proposed settlement. Keep the envelope, email and record of when and how the documents arrived.

Check the relevant response and hearing requirements promptly with a lawyer. Procedures vary by court and jurisdiction. Do not assume that a deadline remembered from another dispute applies, or that an informal conversation with the claimant satisfies the court process.

Preserve the evidence

Collect the agreement, correspondence, work or delivery records, invoices and payment history. Ask relevant staff to preserve original messages and notes. Do not edit or delete records because they look unhelpful.

Prepare a short chronology separating agreed facts from disputed allegations. Include your own concerns about weaknesses. An adviser can respond more effectively to a complete file than to a summary designed only to show why you feel wronged.

Check who needs to be involved

Notify any relevant insurer or broker promptly and follow applicable notification requirements. Identify the authorised company decision-maker and the person coordinating documents. Avoid making admissions or agreeing settlement terms before understanding their consequences.

Business.gov.au notes that court can be costly and time-consuming. Ask for an explanation of response options, likely stages and costs. A defence, negotiated resolution and assessment of any counterclaim require different information and should be considered deliberately.

Source: When to go to court over a dispute — business.gov.au

Keep the business response organised

Create a calendar of required steps and assign ownership. Continue managing trading and cash so the dispute does not absorb every decision. Estimate the resources needed and revisit the position when meaningful evidence or an offer arrives.

If negotiations begin, confirm how they interact with court obligations. Do not assume the case or a deadline has stopped unless the necessary agreement or order is in place. A calm, timely response protects more options than an angry exchange followed by silence.

Organise the response before debating the merits

Record the document type, court, claim and receipt details.

Obtain legal advice on response requirements and notify relevant insurance contacts.

Preserve evidence and assign one person to manage the timetable.

Call CRP today about coordinating legal and financial support for a business claim.