For the love of your business

Do I need to be worried about where my company might be sued?

Clarifying Questions

Q:     Do I need to be worried about where my company might be sued?

–Fretful Business Owner

A:      Dear Fretful:

As a business owner, you are smart to anticipate potential problems, and thinking about where your company might be sued (or, for that matter, where you might bring a lawsuit) is wise.

Generally, if there is going to be a lawsuit, you want it to happen in the state where your company is headquartered, so you would not need to travel to make a court appearance.

There is risk though that you could be sued in any State where you are doing business, and that includes any location in which you have employees or independent contractors.

To assure that you are not sued in any location other than your “home state” you need to ensure jurisdiction provisions are built into each of your agreements.

And, on a slightly different topic, you also want to build in arbitration or mediation requirements before any litigation is brought.

This is part of why it’s so critical to have all of your legal agreements drafted, or at the very least reviewed, by trusted legal counsel before you sign an agreement.

A Creative Business Lawyer® can help you with that. Contact a Creative Business Lawyer® for a review of all of your legal agreements today.

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