How Do I File a Lawsuit Against a Company?

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To file a lawsuit against a company may seem daunting, but the process is similar to any other civil lawsuit against an individual or other organization. A lawsuit against a company may be the next step if other measures have been taken to resolve a dispute and consumers should be aware of this option.  

A disgruntled customer looking to file a lawsuit against a business should consider the actions they’ve already taken in the dispute and gather any related documentation. Documentation could include complaint letters, emails or records of calls. Applicable contracts, terms of service or other agreements with the business should also be gathered.  

A person can file a lawsuit against any type of company or businesses, including for-profit and non-profit entities, small and large companies, as well as government entities.

Civil lawsuits 

Civil lawsuits refer to legal actions between two parties, as opposed to criminal lawsuits in which a government entity charges a person for committing a crime.  

Civil lawsuits, filed against a business or other party, follow the same basic steps: 

• The plaintiff files a complaint and summons with the appropriate court 
• The business, or defendant, is served with the complaint or summons 
• The business is given a specific time frame in which to answer a complaint 
• If the business answers the complaint in a timely manner, the parties enter into discovery
• During this time, the parties may submit any number of motions, including motions for summary judgment or motions to dismiss 
• The lawsuit either goes to trial or settles 

Naming and serving a business with a lawsuit 

One difference between filing a civil lawsuit against a business, rather than an individual, may be determining the name and entity that should be served with the complaint and summons and even where the lawsuit should be filed. It is imperative to file a lawsuit against the correct defendant or defendants. Failure to do so can lead to the dismissal of the complaint or loss of the lawsuit.  

Figuring out the business entity to name in a lawsuit is not always straightforward. One issue may be that the name of the business the customer is familiar with is different from the registered name of the business. For example, customers may know a business as “XYZ Restaurant,” but the legal name of the business may be “Fine Food Company, doing business as XYZ Restaurant”.  

Additionally, the storefront business may be owned by any number of parent companies, and these companies may potentially need to be named in the lawsuit.

Further, a complaint and summons may need to be served on the registered agent of the business.  

An internet search can be a good place to verify the name of a business. The offices of the county clerks or secretary of state may also be a helpful resource to find the name of the business. 

Further, there may be some question as to where to file the lawsuit against a business. Called “jurisdiction,” where the lawsuit is filed may depend on where the parties live or where the events leading to the dispute took place. Determining jurisdiction can become complicated when business transactions take place over the internet or if there are multiple defendants, such as parent companies, involved.

Arbitration in a lawsuit with a business 

Another way a lawsuit filed against a business can be different than one filed by an individual is the parties may enter into arbitration to resolve the dispute. Indeed, arbitration may be required, depending on the terms of contracts that may apply to the dispute.  

Arbitration is an alternative way for a dispute with a business to be resolved. Unlike a trial, state and federal rules of civil procedure may not apply. Additionally, unlike mediation, a neutral arbitrator decides the dispute.

In addition to potentially being mandatory, the results of an arbitration procedure may be binding. If the arbitration decision is binding, then it can be enforced by a court of law.

Arbitration has become an increasingly popular way for businesses to handle disputes. Often, arbitration agreements are built into consumer contracts. Though arbitration is usually a more efficient way to handle a dispute with a business, there is some concern the business has the upper hand when using these procedures. 

Settling a lawsuit with a business 

Lawsuits are expensive and time consuming for businesses, as well as consumers or employees who may file the complaint. Many businesses will try to resolve the dispute out of court to avoid the time and expense.  

Settlements refer to agreements made out of court that stop the litigation procedure. Essentially, settlement agreements are a compromise between the parties; the plaintiffs usually receive some type of compensation and the defendants are not required to admit liability.

Defendants can also agree to some form of “injunctive relief,” such as changing a policy or practice related to the dispute that is the subject of the lawsuit. 

Mediation procedures can often lead to a settlement agreement. In mediation, the parties meet with someone trained to mediate disputes. If mediation fails, the parties return to court to litigate the dispute. 

Types of lawsuits against companies 

Many business disputes involve a contract or an agreement between a business and a customer.  

Another type of lawsuit that can be brought against a company may have to do with employment. An employee may claim the business violated state or federal labor laws, such as those regarding overtime pay, requiring unpaid labor or poor working conditions.  

Consumers should also be aware that, if the amount that they are suing a business for is small, they may need to file their lawsuit against a business in small claims court. The parameters for filing a lawsuit in small claims court vary depending on the location of the court. Generally, the filing fees are lower and the time it takes to litigate a lawsuit in small claims court is shorter. 

Can a lawyer help?  

An experienced attorney can certainly help someone with a business dispute navigate the legal process. Further, the company hit with a lawsuit will most likely have their own attorneys to defend themselves from the claims.  

An attorney can also help the plaintiff in a business lawsuit negotiate a fair settlement or aid them in arbitration or mediation.