Summary
- Knowing how to sue a company is important in many types of cases
- The steps to sue a company are fairly uniform across the states
- Hiring a lawyer is usually advisable since companies often hire lawyers
Under American law, business entities like corporations, limited liability companies and partnerships have “personhood.” This means they have legal rights and responsibilities under the law. Just as an individual can injure, defraud or breach an agreement, so can a company. Here’s what you need to know about how to sue a company in today’s legal landscape.
Establishing Grounds for Suing a Company
A business entity is a collection of people. When it acts, many people participate in the decision and execution of the action. The entity is usually held responsible for acts performed in its name.
Moreover, owners are often shielded from personal liability by the “corporate veil.” Employees have similar protection under a doctrine called respondeat superior. As a result, an action on behalf of a company is typically attributed to the company, even if you can point to a specific owner or employee who performed it.
For example, a company’s chief science officer might have been responsible for authorizing the use of a toxic chemical in the company’s products. If those products eventually cause cancer, the victims would sue the company rather than the person who decided to include it. Similarly, rideshare companies face lawsuits when passengers suffer harm during rides, including cases of sexual assault by drivers. In these instances, plaintiffs may argue that the company’s failure to conduct thorough background checks or implement sufficient safety measures contributed to the assault.
The following grounds might support a lawsuit against a business entity:
- Injuries and accidental deaths caused by the entity’s defective products
- Injuries and accidental deaths caused by employee negligence
- Injuries occurring on the company’s premises due to company acts or omissions
- Discriminatory actions resulting from company policies
- Breaches of contracts or warranties
- Property disputes
- Fraud
Fortunately, in most of these cases, the company has insurance to protect customers and guests. As a result, there will often be resources available to compensate you for the losses you suffer due to the company’s actions if you win your lawsuit.
Steps for How to Sue a Company
The steps for how to start a lawsuit against a company are almost the same as the steps for suing an individual. The main difference is that the steps are applied differently when you sue a business entity.
Moreover, whether you need to know how to sue a company for contributory negligence or how to sue a company for fraud, the process will generally remain the same. Thus, the grounds for the lawsuit should not affect the steps, although it may impact the court where you file the lawsuit.
Determine Which Court to File Your Lawsuit With
The U.S. has two court systems that handle millions of court cases. Federal courts are usually described as courts of “limited jurisdiction” because they can only hear certain types of lawsuits. A federal court will not have subject-matter jurisdiction over many cases, so you must file in state court.
For example, federal courts have exclusive jurisdiction over patent infringement cases. This means that these cases must be filed in federal court. However, the federal courts have much more limited jurisdiction over ordinary contract disputes or injury claims.
State courts are often described as courts of “general jurisdiction” because they can hear almost any type of case, with a few exceptions for cases reserved for federal courts. Every state has trial courts where you can file lawsuits.
The first step in how to file a lawsuit against a company is typically to determine which system can hear your case.
Identify the State Where You Can File
The next step in how to sue a company is to determine the location of the lawsuit. You can only file a lawsuit in a jurisdiction where the court can fairly exercise jurisdiction of the company.
A court only has “personal jurisdiction” over a company that has “significant contacts” with the state where the court is located. It is not enough that the company’s products are available in the state. It must have “purposefully availed” itself of contacts with the state.
All of this means that you will often need to file a lawsuit where the company was incorporated or has its headquarters.
Prepare the Lawsuit
Understanding how to file a lawsuit against a company without a lawyer may be relatively straightforward but not necessarily advisable. You can always represent yourself in a lawsuit. However, most courts require business entities to have a lawyer. In other words, businesses do not have the right to represent themselves in court. Anytime you sue a company, you will likely face a lawyer.
For this reason, you should consider hiring an attorney to sue company or business entities. Your lawyer can make sure the complaint that starts the lawsuit is solid and will not get tossed out of court.
Serve the Lawsuit
How long does it take to sue a company exactly? After you prepare the lawsuit, you must serve it on the company’s resident agent. Once the complaint is written, you can have it served within a day or two.
Contact ConsumerShield to Learn More About How to Sue a Business
ConsumerShield helps people understand and protect their legal rights when facing needing to sue a company. Contact us for a free case review and a referral to a lawyer who can help with your lawsuit.
