If you are in business for long enough, you will likely experience a frivolous personal injury claim. For example, an individual may threaten to sue your business because you did not provide adequate service and this caused emotional distress. Most of these threats do not lead to an actual lawsuit and many that do are dismissed quickly by the courts. But there are still steps you should take to protect yourself. Even if you win the case, a frivolous lawsuit can be expensive.
Seek Legal Counsel
When you receive your first frivolous lawsuit, you should seek legal counsel to determine if the individual would actually have a case. This is something you'd only need to do once for each situation. If you are a part of any professional organizations, you may receive free legal counsel for these matters.
Know the State Law
Many states have passed specific laws to tackle the problem of frivolous lawsuits, so make sure you know the laws specific to your state. For example, in Virginia, there are provisions designed to stop venue shopping. This is a practice where a litigator files a lawsuit to several courts in search of one that is receptive of the lawsuit.
Counter-Sue
You can sometimes counter-sue the litigator's legal attorney or law firm for lost time and for the anguish of having been sued. Especially for new small business owners, being sued can cause emotional harm and you deserve compensation. Even if you do not win the counter-suit, a second advantage is that the added complications of the counter-suit may cause the plaintiff to choose to drop the lawsuit. Also, if your insurance premiums go up because of frivolous lawsuits, you could sue the litigator for the difference between your previous and current insurance premium.
Sue For Increased Premiums
You should consult with an attorney before suing for a frivolous lawsuit. Then, prepare a claim asking the court to require that the litigator pay you damages. Fortunately, if the court ruled that the lawsuit was frivolous, this ruling is the evidence you need for a frivolous lawsuit. Then, you must show proof that your premium went up specifically because of the lawsuit.
Protect Yourself With Liability Insurance
Purchase insurance to protect yourself against liability. Even if you are a careful business owner, there are some things that are out of your control. Then, if you do lose a frivolous lawsuit, you will not have to pay for it.
To learn more, contact a personal injury law firm like Bishop Dorfman Kroupa & Bishop PC.
