Being sued for breach of contract can be overwhelming, whether you’re an individual, a small business, or a large company. Knowing the right steps to take early on can make the difference between a manageable resolution and a costly mistake. The following guide is intended to assist you in navigating the initial stages of a breach of contract lawsuit.
1. Do Not Ignore the Lawsuit
The first and most important rule: never ignore a lawsuit. In Florida, once you are served with a complaint, you typically have 20 calendar days to file a formal response. Failing to respond can lead to a default judgment, which may result in the court entering judgment against you without considering your defenses.
2. Gather All Relevant Documents
Immediately collect and organize any documents related to the dispute, such as:
– The signed contract (and any amendments or addenda)
– Invoices, receipts, payment records
– Emails, text messages, or letters between you and the other party
– Notes or internal records about the deal
Having these materials ready will help your attorney assess the strengths and weaknesses of your defense.
3. Consult a Business Litigation Attorney
Even if you think the lawsuit is minor, consulting an attorney early can help avoid serious mistakes. An experienced litigator can:
– Analyze whether the contract was actually breached
– Identify valid defenses (e.g., impossibility of performance, prior breach by the other party, waiver)
– Identify potential counterclaims against the Plaintiff or your legal right to set off damages
– Spot procedural errors in the lawsuit
– Develop a strategy to negotiate, settle, or defend the case aggressively if needed
4. Understand Possible Defenses
Breach of contract claims are not automatic wins for the plaintiff. You may have valid defenses, such as:
– No valid contract existed
– Prior breach
– The contract was impossible or illegal to perform
– The plaintiff waived enforcement or accepted defective performance
– The damages claimed are speculative or exaggerated
A careful legal review can uncover defenses you might not realize you have.
5. Preserve Evidence and Avoid New Mistakes
Once a lawsuit is pending, you have a duty to preserve evidence. Destroying, deleting, or hiding documents — even unintentionally — can severely damage your case and lead to sanctions. Be cautious about what you say in emails or texts related to the dispute.
Also, avoid contacting the plaintiff directly unless your attorney advises otherwise. Communications can be used against you.
6. Explore Early Settlement Options
Not every breach of contract case has to end in a full trial. Sometimes an early settlement can save time, money, and stress. Your attorney can negotiate on your behalf and, if appropriate, raise defenses and counterclaims that might encourage the other side to settle for a reasonable amount — or even drop the case entirely.
Conclusion
Being sued for breach of contract is a serious matter, but with the right approach, it is often possible to protect your interests and minimize potential damages. The key is acting quickly, gathering evidence, and seeking experienced legal advice.
If you have received a breach of contract lawsuit or a threat of litigation, contact our office today to schedule a consultation. Our attorneys stand ready to assist you in evaluating your options and formulating a strong and effective defense.