What to Do if Your Business Gets Sued in Arkansas

You are an Arkansas business owner and just got served with a lawsuit – now what?

Lawsuits are a real possibility for all businesses, even if you do everything by the book: contracts are disputed, employees feel wrongfully terminated, and customers aren’t satisfied with their service. If your Arkansas business has been served with a lawsuit, the steps you take next can significantly impact the outcome. Here’s a practical guide to what you should do if your business gets sued in Arkansas—and how an experienced business law attorney can help.

1. Don’t Ignore the Claim

First things first: don’t ignore the lawsuit or put it aside for later. Once you’ve been served, the clock starts ticking—and missing a deadline can lead to serious consequences, including a default judgment (which means the court may automatically rule against you).

2. Read the Complaint Carefully

Take the time to read the complaint and any documents that came with it. These papers will tell you who is suing you, their claim, which court in which the case is filed, and how long you have to respond.

Understanding what the lawsuit is about helps you prepare your next steps. Try not to take it personally—treat it as a business issue that needs to be handled professionally and promptly.

3. Contact a Business Law Attorney Right Away

Stop what you’re doing and contact a qualified business litigation attorney in Arkansas immediately. Even if you think the lawsuit is baseless or that you understand how much time you have to respond, you need legal guidance as soon as possible. Response times can vary based on many different factors, and an attorney must be contacted to review the complaint and ensure your rights are protected. Your attorney will:

• Review the complaint with you
• Help you understand your rights and options
• Prepare and file a response with the court
• Communicate with the opposing party on your behalf

Again, responding properly and on time is key. Your lawyer can also help you figure out whether there’s a way to resolve the matter quickly without going to court.

4. Notify Your Insurance Company

Depending on the type of lawsuit, your business insurance policy might help cover legal costs or settlements. For example, if a customer claims they were injured at your business, general liability insurance could come into play. If it’s a professional error claim, your professional liability insurance might help. Your business litigation attorney will guide you in the correct direction, such as contacting your business insurance company.

5. Gather and Preserve All Relevant Information

It’s important to start collecting any documents, emails, contracts, or records related to the dispute immediately. This evidence can be crucial to your defense.

Also, don’t delete or alter anything. Even if something seems harmful to your case, destroying it can lead to more serious legal trouble. Your attorney may help you issue a “litigation hold,” which ensures that all relevant information is preserved correctly.

6. Explore Your Options for Settlement

Going to trial can be expensive and time-consuming. That’s why many business lawsuits end in settlement. Once your attorney has reviewed the case, they can help you evaluate whether settling is in your best interest.

Settlement doesn’t mean admitting guilt—it’s often a smart way to protect your business and move on. Mediation or negotiation can help both sides reach an agreement without stepping foot in a courtroom.

7. Prepare for the Legal Process

If a settlement isn’t reached, your case will move forward through the legal system in Arkansas. This process can be complex and may take several months or even longer to resolve. One of the first steps is for your attorney to file a formal response to the complaint, known as an “Answer,” which addresses each of the claims made against your business.

From there, both sides will enter what’s called the “discovery” phase, where information and evidence are exchanged. This might involve answering written questions, producing documents, or giving sworn testimony in a deposition. You may also be required to attend court hearings or participate in mediation sessions aimed at resolving the dispute outside of trial.

8. Resolve and Prevent Future Lawsuits

Facing a lawsuit can be a wake-up call for your small business. Once it’s resolved, take time to review what went wrong and how to prevent similar issues. Some helpful steps include:

• Updating contracts and business policies
• Improving employee training
• Creating clear processes for customer service or conflict resolution
• Scheduling regular legal checkups with your business law attorney

A little prevention can go a long way in avoiding legal trouble down the road.

Contact a Business Lawyer in Arkansas Today

Getting sued can be stressful, but you don’t have to go through it alone. By staying calm, getting legal help early, and taking the right steps, you can protect your business and limit the damage.

If your business has been served with a lawsuit, don’t wait. Work with a trusted business attorney in Arkansas who understands local laws and has experience guiding companies like yours through legal challenges.

Contact The Law Group of Northwest Arkansas for a consultation or call 479-316-3760 today.