Filing a lawsuit is never easy and should never be taken lightly. But if a business has wronged you, and you don’t feel like you have any other recourse, then filing a lawsuit may be your best option.
But when it comes to suing a business, you should know a few things. You may not have realized it, but companies are protected against certain lawsuits. And even if you do have a valid case, winning can be difficult. Here are a few things you should know before you sue a business.
1. There are some lawsuits businesses can’t be sued for.
There are a few different types of lawsuits that you can’t sue businesses for. For example, if you’re suing a company for breach of contract, you can only sue for damages directly caused by the breach. You can’t sue for punitive damages or emotional distress.
Another type of lawsuit businesses can’t be sued for is defamation. Defamation is when someone makes a false statement about you that damages your reputation. If they made the statement in writing, it’s called libel. If they spoke the message, it’s called slander. You must demonstrate that the statement was false and hurtful in order to succeed in a defamation case.
Depending on your state, there may be other types of lawsuits that you can’t sue businesses for. It’s always a good idea to check with an attorney before filing a lawsuit to ensure you have a valid case.
2. You may have to file your lawsuit in a different state.
Just because you live in one state and the business you’re suing is in another doesn’t mean you can automatically file your lawsuit in your home state. The company may only be doing business in your state, but if it’s based in another state, you’ll likely have to file your lawsuit there.
This process will require you to follow out-of-state subpoena regulations, which can be complicated. The procedure states that you must serve the person or business you’re suing with the subpoena in the state where you will file the lawsuit. For example, if you live in Texas and the company you’re suing is based in California but does business in Texas, you’ll have to serve the business with the subpoena in California.
It’s always a good idea to consult with an attorney before filing a lawsuit in another state. You want to ensure you have a strong case and follow all the correct procedures.
3. You may not be able to get a jury trial.
If you’re suing a business, you might not be able to get a jury trial. That’s because most companies are incorporated, and you can only sue corporations in federal court. Judges, not juries, try federal court cases.
Of course, there are some exceptions to this rule. If you’re suing a sole proprietor or partnership, you may be able to get a jury trial. And if you’re suing a state-owned business, you might be able to get a jury trial in state court. But for the most part, if you’re suing a company, you won’t be able to have your case decided by a jury of your peers.
You’ll need to find an experienced trial attorney familiar with federal court procedures to prepare for this.
4. You may have to pay the business’s legal fees if you lose.
Winning a lawsuit against a business is no easy feat. And if you lose, you may be responsible for the business’s legal fees. In some states, if a court finds your lawsuit was frivolous or without merit, you may have to pay the business’s attorneys’ fees.
The business may try to recover its legal fees even if you don’t live in one of those states. The company will have to file a motion with the court asking for an order that you pay its fees. The court will then hold a hearing to decide whether or not you have to pay.
You could end up owing the company a lot of money if you lose. Before you proceed, you should consult with an experienced attorney to discuss your case and the risks involved.
5. You may not be able to collect on a judgment if the business doesn’t have any money.
Even if you win your lawsuit and are awarded a judgment, you may not be able to collect on it if the business doesn’t have any money. Companies can’t be forced to sell their assets to pay a judgment.
If the business is a sole proprietorship or partnership, the court may order the owner(s) to pay the judgment out of their personal assets. But if the business is a corporation, the court can’t do this. To collect on a decision, you’ll have to find out if the company has any money or assets they can use to pay the judgment.
This can be a difficult and time-consuming process. And even if you’re successful, there’s no guarantee that you’ll be able to collect the total amount of the judgment.
If you’re thinking about suing a business, you need to understand the potential risks and rewards involved. Always consult with an experienced attorney before proceeding. This will help you understand the strengths and weaknesses of your case and the risks involved. With this knowledge, you can make an informed decision about whether or not to proceed with your lawsuit.