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How to Proceed if my Business is Being Sued for Business Malpractice

Malpractice claims can be devastating for a business. Claims of malpractice allege that a professional failed to execute their duty of care to a client. It calls into question your business ethics, judgment, and qualifications. Business malpractice lawsuits can also create substantial liability for your business. When you receive a lawsuit alleging business malpractice, the first call you should make is to a South Carolina business attorney.

What Should You Do When Your Business Is Sued for Business Malpractice?

Take the complaint and the allegations of business malpractice seriously. You need to act immediately to protect your business and minimize any damage to your company. The steps you should take when being sued for business malpractice include:

Contact Your Business Attorney Immediately

Call your lawyers to let them know you received a lawsuit alleging business malpractice. They will need a copy of the lawsuit to begin reviewing the allegations, investigating the claims, and gathering information to file an answer to the lawsuit before the filing deadline expires for a response.

Notify Your Malpractice Insurance Carrier

Notify your malpractice insurance carrier and forward a copy of the complaint to the insurance company. If you have insurance coverage for the allegations made in the complaint, your insurance provider should hire an attorney to represent your company by defending the lawsuit. If so, you might not need to hire a business attorney. However, if there is a chance that the malpractice insurance does not cover the allegations or you could be personally liable for damages, it is best to consult legal counsel.

Do Not Contact the Plaintiff or Try to Represent Yourself

The plaintiff has a lawyer. You should not try to contact the plaintiff directly. In fact, you should not contact the lawyer for the plaintiff. Let your attorneys handle all communications and responses to the allegations in the complaint. Also, do not try to represent yourself or your company in a business malpractice lawsuit. Regardless of your knowledge or experience, representing your business in a legal matter is never wise.

Gather Evidence and Information 

Begin gathering evidence and information relevant to the allegations in the lawsuit. Make copies of contracts, agreements, and other documents. Create a witness list for your attorney, including a short narrative explaining each witness’s information related to the lawsuit. Preserve all records related to the case, including emails, text messages, and paper documents. If specific employees have information relevant to the case, instruct them to preserve all information and not to discuss the case with anyone.

Refer All Questions About the Case to Your Lawyer

If anyone inquires about the case, refer them to your attorney. Do not even state “not comment.” Just provide them with your lawyer’s name and contact number. You should not discuss the lawsuit with anyone other than your lawyer.

Contact Our South Carolina Business Attorney for More Information

Allegations of business malpractice can be costly and damaging to your company’s reputation. Contact our office to discuss your situation with an experienced South Carolina business attorney.