Legal issues between two people are complicated enough, but things can get very messy when a business becomes embroiled in the court process. Businesses can indeed be served court papers, but service of process takes a bit more planning and care than when serving an individual.
Who Gets Served?
Serving one person is relatively straight forward because Bob from Kansas should only have one residence and can be tracked with standard methods. But a business is a large entity, and a court case may not even impact the entire company. So into whose hands do the court papers need to be placed?
If a business is a sole proprietorship, then the owner needs to be served the papers. In the case of a partnership, at least one partner needs to be served, and it is best if it’s the partner who has the most involvement in the daily operations of the company. A company is more complicated but offers more options. Any officer, like a president, vice president, or secretary can be served papers.
How Should a Business React?
Being served papers is never good news for a business. Ignoring a lawsuit usually results in a costly and damaging judgment, but handling the lawsuit requires unavoidable legal expenses and a great deal of time and effort. The best thing a business can do is inform its lawyer or legal team, establish deadlines, and plan a defense. Even lawsuits with no merit can cause reputational damage if not handled properly.
Many businesses have insurance coverage for such situations, and notification in a timely manner is key to enjoying that coverage. Once a business gathers all of the information available on the situation, it’s time to consider resolving the dispute outside of the courtroom. Agreements and compromises can often be reached if each party attempts substantive communication.
