What to Do If Your Business Gets Sued

✍️ By Debbie Balfour | WBN News | June 16, 2025 | Click HERE for your FREE Subscription to WBN News and/or to be a Contributor.

A lawsuit doesn’t have to mean the end of your business—if you know how to respond.
Getting served legal papers can send any business owner into panic mode. But lawsuits are more common than you think, and the way you handle the first 48 hours can make or break your case.

In Canada, lawsuits against small businesses often stem from:

• Contract disputes
• Employment issues
• Customer injuries
• Alleged breach of service or product liability

Want a quick visual breakdown of what to do if your business gets sued?
Check out this short video on the 7 critical steps every small business owner must take.

It walks you through exactly what to do (and avoid) in the first 48 hours after being served legal papers.

So, what should you do first?

1. Don’t ignore it. Avoidance won’t make it go away. Once you’re served, you have a limited time to respond—often just 20 days.
2. Read everything. Carefully review the statement of claim. Understand the allegations before reacting emotionally.
3. Don’t contact the other party. Anything you say could be used against you in court.
4. Gather documentation. Contracts, communications, policies—everything matters.
5. Get legal advice immediately. This is not the time for Google or guesswork.

Most small business owners worry about cost, but delaying action is even more expensive. That’s why many are now turning to affordable legal membership services. These offer ongoing access to legal professionals who can walk you through litigation risk, prepare responses, and support your defence without outrageous hourly fees.

No business owner ever wants to be sued, but you can survive it if you act quickly, stay calm, and get proper guidance.

Lawsuits aren’t the end. But inaction might be. Protect your business by being prepared.

Have questions or not sure where to start? I’m here to help—reach out anytime.

Debbie Balfour | Real Estate Investing Success Coach + Podcast Host
📍 Website: www.DebbieBalfour.com
📧 Email: Debbie@DebbieBalfour.com
🔗 LinkedIn: Debbie Balfour
▶️ YouTube Channel: youtube.com/@DebbieBalfour

TAGS: #Business Lawsuits #Legal Support For Business #Small Business Risk #Canadian Business Law #Litigation Tips #Entrepreneur Legal Help #WBN TV #WBN News Langley #WBN News Abbotsford #WBN News Okanagan #Debbie Balfour