Part I. What landed on the desk · Chapter 2
I have been served with a lawsuit. What happens now?
A lawsuit begins when a complaint is filed with a court and served on you with a summons. From that moment a clock is running that a court set, not the other side, and the single most damaging thing a business can do is let it run out. This chapter explains service, the answer deadline, default judgment, and the difference between small claims and civil court.
2.1Service: how a lawsuit reaches you
You are served when the summons and complaint are delivered to you in a way the court's rules allow: handed to you or an officer, left with your registered agent, or in some courts sent by certified mail. The summons is the court's notice that a case exists and that you must respond by a stated time. The complaint is the plaintiff's statement of what they say you did and what they want.
Note the date and manner of service. The deadline runs from it. If the papers reached you some other way, for example forwarded by a former employee, speak to a lawyer about whether service was proper, but do not treat improper service as a reason to do nothing; courts often cure it, and the clock may be running anyway.
2.2The answer deadline, and why it varies
An answer is your formal written response to the complaint, filed with the court, admitting or denying each allegation and raising defences. The time allowed depends on the court. In federal court the general rule is 21 days from service.1 State courts set their own periods, often between 20 and 30 days but not always, and small-claims courts have their own rules, sometimes requiring no written answer at all but attendance on a hearing date.
Instead of an answer, a defendant can sometimes file a motion, for example asking the court to dismiss the complaint for a defect. That is a lawyer's decision and it has its own deadline, usually the same one.
2.3Default judgment
If the deadline passes with no answer or motion, the plaintiff can ask the clerk or the judge to enter a default and then a default judgment: a decision against you, without a trial, for the relief the complaint sought.2 The judgment can then be enforced like any other: bank levies, liens, in some states garnishment of business receivables. Setting aside a default is possible but requires a motion, a reason the court accepts, and usually a lawyer. It is far cheaper to answer on time.
2.4Small claims versus civil court
| Small claims | Civil court | |
|---|---|---|
| Amount | Capped; the limit varies by state and is set by state law | No cap |
| Lawyers | Often not allowed or not needed; businesses can usually appear through an owner or employee | Entities usually must appear through counsel |
| Procedure | Simplified; a hearing date rather than pleadings and discovery | Pleadings, discovery, motions, possibly a jury |
| Timeline | Weeks to a few months | Months to years |
| Appeal | Limited, and varies by state | Full appeal rights |
The small-claims limit, the forms, and whether a business needs a lawyer are set by each state and published on the state court's self-help site. Search for your state's court system and "small claims"; the official page is the authority, and most are written for people without lawyers.
2.5What to do this week
- Find the deadline on the summons and write it down.
- Identify the court: federal or state, which county or district, small claims or civil. The caption at the top of the complaint says.
- Preserve every record connected to the claim. A filed case brings discovery, and destroying records after service carries serious consequences.
- Notify your insurer in writing with the complaint attached. Some claims trigger a duty to defend.
- Decide who will respond. If the defendant is an LLC or corporation in civil court, that usually has to be a lawyer, so start finding one today.
- Do not contact the plaintiff directly if they have a lawyer. Communications go lawyer to lawyer, or through you to their lawyer if you have none.
2.6What a filed case involves
After the answer come discovery (each side must produce documents and answer questions under oath), motions, usually a mediation or settlement conference, and, for the small minority of cases that get there, a trial. Most civil cases settle. Costs are paid by each side as they go, and in the United States each side usually bears its own lawyer's fees unless a statute or contract shifts them. Chapter 13 covers the settle-or-fight decision inside a filed case.
Questions readers ask
How long do I have to respond to a lawsuit?
It depends on the court. In federal court the general rule gives a defendant 21 days from service to answer. State courts set their own periods, and small-claims courts differ again. The summons states the deadline for your case; treat that as the only number that matters.
What happens if I do not respond?
The plaintiff can ask the court for a default judgment: a decision against you without a trial, for what the complaint asked. A default judgment can be enforced against business accounts and assets and is hard to undo.
Can I handle a lawsuit without a lawyer?
An individual can represent themselves. In most courts a corporation or LLC must appear through a lawyer; small-claims courts are the common exception. Check the rule for your court before the deadline, not after.
Does being served mean the case has merit?
No. Filing requires only that the plaintiff states a claim. Merit is decided later. But a filed case has to be answered on its own schedule regardless of merit.
Notes and sources
- Federal Rules of Civil Procedure, Rule 12(a)(1)(A)(i): 21 days after service to serve an answer, in the ordinary case. State courts set their own periods; the summons states the one that applies to you.
- Federal Rules of Civil Procedure, Rule 55 (default and default judgment). State courts have equivalent rules.