Dealing with Frivolous Lawsuits Against Your IT Company

Steps To Take When Facing A Frivolous Lawsuit

There are two main types of lawsuits – frivolous and legitimate. Unfortunately, too many Canadian consumers are constantly trying to find new ways to legally sue unaware companies. Each year, hundreds of lawsuits are filed against Canadian companies. Through extensive investigations, court officials are able to determine the lawsuits are frivolous before they cause too much trouble. 

The second a lawsuit is filed against a company, the damage has already been done. Once it gets out a lawsuit has been filed in a Canadian court, consumers begin to take their business elsewhere. So, a frivolous lawsuit can do just as much damage as a legitimate lawsuit.


Frivolous Lawsuit – What Is It?

If it turns out the evidence is too weak to support the plaintiff”s claims, it is a frivolous lawsuit. For example, a woman who alleges to have been injured by a product does not have solid evidence to use in court. In turn, court officials throw out the lawsuit because the woman’s evidence is weak.

Like corporations, small businesses are at risk of lawsuits. However, small businesses are targeted more often than large corporations because they are lacking the financial support needed to fight lawsuits. 


Request A Dismissal

Regardless of the nature of the lawsuit, your first step is to request a lawsuit dismissal. To qualify for a dismissal, you must be able to back up your claims. You will need to request a dismissal in writing. Your attorney can help you write a letter to the court requesting a dismissal. It generally is not that difficult to qualify for a dismissal if you have evidence to back up your claim.


A Waiting Game

Once the dismissal has been submitted to the court, it will just be a waiting game. There is nothing you can do to push the case further until you receive an approval or denial. It can take anywhere from a few days to several weeks or months to receive a response for your dismissal request.


A Dismissal Request Denial

Do not be surprised if your dismissal request is turned down. This is a very common practice in Canadian courts. Judges do not like to dismiss lawsuits without solid evidence. A dismissal means the case will be brought before a judge and/or jury. 


Business Insurance And Frivolous Lawsuits

There are two main business insurance policies that cover frivolous lawsuits. The policies are Errors and Omissions (E&O) and general liability insurance. Both policies cover expenses accrued in court, litigation expenses, and monetary court judgments and out-of-court settlements.


Third-Party Property Damage and Bodily Injury Claims – General Liability Insurance

Most customer property damage and bodily injury claims are covered under general liability insurance policies. If a resolution cannot be reached in a timely manner, the customer will not hesitate to file a lawsuit against your company. Whether the lawsuit is legit or without merit, your company will be forced to fight the claims in a court of law.

If the court determines the plaintiff’s claims are without merit, the lawsuit will be dismissed. If not, you will end up fighting the case in court. Sometimes, it is impossible to avoid a court appearance when facing a lawsuit even if it is without merit.

E&O and general liability insurance policies cover liability claims. Your attorney will determine which policy will work best for a specific liability lawsuit.


ProfessionalsCoverage Can Help

The IT insurance specialists at ProfessionalsCoverage can customize an E&O and/or a general liability policy that will cover all of most of a liability lawsuit. To learn more contact your local ProfessionalsCoverage office during business hours. Do not fight a frivolous lawsuit alone when the best support option is staring you right in the face. 






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