Being served with a lawsuit is one of the most stressful events a business owner or executive can face. The instinct is often to panic, ignore it, or assume it will go away. None of those responses will help you. What will help you is acting quickly, strategically, and with experienced counsel. Here are three critical steps every defendant should take immediately upon being served.
Step 1: Preserve Everything — Immediately
The moment you are served with a lawsuit — or even when you reasonably anticipate that litigation is coming — you have a legal obligation to preserve all documents, communications, and data that may be relevant to the dispute. This is called a "litigation hold," and failing to comply with it can have devastating consequences, including sanctions, adverse jury instructions, or even default judgment.
Preservation means more than just not deleting files. It means suspending any automatic deletion policies, preserving emails, text messages, voicemails, and electronic documents, and notifying employees who may have relevant information. The scope of what must be preserved is often broader than defendants expect, and the consequences of getting it wrong are severe.
Step 2: Retain Counsel Before the Clock Runs Out
In California Superior Court, a defendant generally has 30 days from the date of service to file a response to the complaint. This deadline is not flexible — failure to respond can result in a default judgment being entered against you, which can be extremely difficult and expensive to set aside.
Retaining experienced litigation counsel immediately upon being served is essential. Your attorney will need time to review the complaint, assess your defenses, evaluate whether to file an answer or a preliminary motion, and potentially negotiate an extension of time. The 30-day clock starts running the moment you are served — not the moment you decide to take the lawsuit seriously.
Step 3: Assess Your Position — Honestly and Strategically
Once you have retained counsel and preserved your documents, the next step is an honest, strategic assessment of your position. This means evaluating the strength of the plaintiff's claims, identifying your best defenses, assessing the potential exposure if you lose, and developing a strategy for resolving the dispute — whether through aggressive defense, early settlement, or a counterclaim that puts the plaintiff on the defensive.
At Tajima LLP, we have successfully defended clients in a wide range of business disputes — from contract claims and employment lawsuits to trade secret cases and real estate disputes. In many cases, we have not only defeated the plaintiff's claims but turned the tables through counterclaims that resulted in significant recoveries for our clients. The key is acting quickly, thinking strategically, and not underestimating the importance of the first few weeks of a case.
The Bottom Line
Being sued is not the end of the world — but it requires immediate, decisive action. Preserve your documents, retain counsel without delay, and develop a clear-eyed strategy for the road ahead. The decisions you make in the first 30 days of a lawsuit can determine its outcome.