Court documents just arrived at your door. Your company’s name is in a lawsuit. Your stomach drops. Whether it’s over a contract, an employment issue, or a business deal gone bad, panic is a natural reaction. But now is not the time to freeze. If you’re wondering what to do when someone sues you in Texas, the steps you take in the next few days can shape everything that comes next.
This guide will walk you through the first five actions every Texas business owner should take after receiving a lawsuit.
1. Don’t Ignore It and Read the Lawsuit Carefully
When someone sues you, what happens is that the court sets a strict deadline for your response to the claim, which is usually 20 days for most businesses in Texas.
Read every page of the petition or complaint carefully. Look for:
- Who filed the lawsuit and why;
- What they are asking for (money, injunctions, damages);
- The deadline to respond; and
- The court where the case has been filed.
Even if you think the claims are wrong, you still must respond. Ignoring it could lead to a default judgment, meaning the court could rule against you automatically.
2. Contact a Business Litigation Attorney Immediately
Once you review the lawsuit, call a Texas business litigation attorney. Timing is critical. This is not only for your response but also to develop a strategy. Your lawyer will help you:
- Analyze the claims and your potential defenses,
- Determine if early resolution is possible,
- Prepare a legally sound response (called an “answer”), and
- Avoid common mistakes that could hurt your case.
An experienced attorney can help you evaluate the strength of the claims and weigh your options for proceeding. That early guidance can shape everything from whether to settle or fight to how you manage public messaging, employee concerns, and future risk.
Trying to handle it yourself or waiting too long can make things worse.
3. Preserve All Relevant Documents and Communications
Once you know about a lawsuit, you have a legal obligation to preserve evidence. You cannot delete emails, shred documents, or reset servers related to the case. Some of the most common pieces of evidence you must maintain include:
- Contracts and invoices,
- Internal emails or messages,
- Texts or voicemails with the other party,
- Meeting notes or memos, and
- Financial records or bank statements.
You should also begin gathering documents and communications that support your version of events.
If you have employees, you may need to send a litigation hold to those with relevant information. It should instruct them not to delete or alter any related records.
Failing to preserve or collect relevant information can result in court sanctions or a weaker case. Your attorney can help you decide what’s relevant.
4. Notify Your Insurance Provider
Business insurance may help cover the cost of defending the lawsuit even if the claim seems unrelated. General liability policies, professional liability, or employment practices insurance might apply.
Let your insurance provider know about the lawsuit as soon as possible. They may provide legal counsel, reimburse defense costs, or help cover a settlement. And what if someone sues you and you can’t pay? Insurance might be a crucial lifeline, but only if you notify them immediately.
5. Plan for Business Continuity
A lawsuit can threaten your bank account and affect your operations, staff morale, and public reputation. Take steps to stay calm and keep your business moving forward by:
- Limiting who inside your company has access to or discusses the lawsuit;
- Creating a point person for all communication with your attorney;
- Being cautious about making public statements;
- Keeping key staff focused on running the business; and
- Preparing for possible disruption, especially if the case becomes public.
You may also want to review essential contracts, vendor relationships, and ongoing deals to assess how the lawsuit could impact current obligations or negotiations. Getting sued is stressful, but you can still lead and maintain business operations.
Bonus Tip: How Does Suing a Company Work?
You may be asking, How does suing a company work in Texas? A lawsuit typically begins with a plaintiff filing a petition in civil court.
Once you’re served, you must respond by the court’s deadline. The case then moves through stages like discovery (evidence exchange), motions, and potentially a trial. Many lawsuits settle before trial, but the process can take months or years, depending on the complexity.
In Texas, limited liability companies (LLCs) and corporations must have a licensed attorney to represent them in court. These business entities cannot represent themselves, even if the owner is present. Failing to use an attorney can result in the court striking your response or entering a default judgment.
The legal process is built on strict deadlines and procedures. A missed step can damage your defense. That’s why early action matters.
Why Hire The Vastine Law Firm, PLLC?
If you’re not sure what to do when someone sues you, The Vastine Law Firm, PLLC can help you take action and protect your business.
Founder Scott K. Vastine brings over 15 years of Texas courtroom experience. Our team has helped companies across Texas resolve high-stakes legal disputes through aggressive courtroom litigation and early negotiation.
We’ve resolved disputes involving contracts, employment issues, fraud, and trade secrets. Clients trust us because we offer:
- Straightforward communication and clear guidance,
- Deep experience in business law and litigation,
- Customized strategies based on your business priorities, and
- A proven track record in and out of court.
If your business has just been sued in Texas, don’t wait. We assist with everything from reviewing the lawsuit and preparing your response to handling negotiations, discovery, and trial. Our team tailors each step to your business goals, keeping you informed and protected at every stage.
The Vastine Law Firm, PLLC will stand by your side from the moment you’re served until the matter is resolved.
Contact Us Today
Schedule your consultation with us today to take the first step toward resolving the problem and getting back to business.
