Cain & Kiel Law

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New business owners may be worried about frivolous lawsuits

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As a relatively new business owner, you know that you have to stay on top of every transaction that occurs with your company. You undoubtedly put up a lot of funds to get your business off the ground, and you do not want anything to jeopardize the operations you have going, especially until you can start turning a regular profit.

Unfortunately, some people know that new small businesses do not have a lot of extra money at their disposal. As a result, they may try to file frivolous lawsuits against your business in hopes that you will simply settle rather than facing the expenses of litigation. However, rather than immediately settling with someone over a frivolous claim, consider your legal options.

Dismissing the case

Though learning that someone has filed a lawsuit against your business can certainly feel shocking and nerve wracking, you do not have to feel out of hope. You may have the ability to request that a judge dismiss the frivolous suit on the basis that the plaintiff does not have a genuine cause to sue your company. Your legal counsel could file a dismissal motion with the judge, but the plaintiff could also oppose the dismissal.

After filing a motion, a waiting game begins. The amount of time it takes for a judge to decide whether to dismiss a case can depend on numerous factors, including how much work the judge already has. This process can take anywhere from a week to months.

Moving forward with litigation

If the judge does not dismiss the case, you may want to look into your options further. Coming to a settlement could be a feasible option, but you may also want to remember that you can defend against any claim that comes against your business. Your financial situation could affect the decision you make as far as how to handle your case, but it is important that you fully understand your options.

An experienced Texas business law attorney can help you understand what it means to face a frivolous lawsuit, how you can work toward having the case dismissed and what you can do to defend against claims in the event that the case goes to trial. It can certainly be an overwhelming experience for new business owners, but with the right help, it could go as smoothly as possible.

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