Lawsuits over construction problems happen more often than most people expect. And they can put your business at risk. If you’re a contractor and a property owner sues you for defective work, you must act immediately. Here’s what to do if you find yourself in this position.
Don’t ignore the lawsuit
The worst thing you can do is delay. As soon as you receive legal paperwork, you should not take it lightly. Lawsuits have strict deadlines. If you fail to respond in time, it could result in a default judgment against you. It means that the court may rule in favor of the complainant.
Gather your documentation
Start collecting everything related to the job in question. It includes contracts, change orders, inspection reports, photos, emails and invoices. These documents could show that you met the required standards and completed your work correctly.
Notify your insurance company
If you carry general liability or contractor’s insurance, notify your insurer immediately. Your policy may cover the legal costs and even the damages—depending on the nature of the claim. Be honest with them but avoid making admissions of fault.
Avoid direct contact with the complainant
It may be tempting to try and resolve the issue yourself. But don’t forget—they can use anything you say against you in court. Let your attorney handle all communication moving forward.
Protect your reputation
While defending your business, continue to deliver quality work and maintain professionalism. A lawsuit doesn’t define your entire career, but how you respond to it will matter. Thus, it is important to know your rights and obligations when you face such a claim. Speaking with an attorney who understands construction litigation can make a difference in how your case plays out. Even if you think the claims are baseless, a skilled lawyer can help you understand you avoid costly mistakes. Even if you think the claim is baseless, having the right guidance can make a big difference in how your case will play out.