I’ve Been Sued in Federal Court: What Do I Do?
First: take a breath. Although we recognize that being sued in federal court is not ideal, you are in the right spot to properly address the complaint. The attorneys at Barnes & Barnes, P.C. have plenty of experience in guiding Defendants through the intricacies of federal court litigation.
Preliminarily, a lawsuit in federal court can be brought only under specific circumstances, typically involving:
- Federal Law: Known as “federal question” jurisdiction.
- Diversity Jurisdiction: When the plaintiff and defendant are from different states and the amount in dispute is over $75,000.
Because federal cases are often high stakes with significant potential liability, it is imperative to be fully prepared and make informed choices.
Key Principle of Federal Litigation
The single most important rule is this: Act quickly and do not ignore the lawsuit. Failing to respond by the legal deadline can result in catastrophic consequences. The court may enter a default judgment against you (meaning the plaintiff automatically wins the case without you ever having the opportunity to present a defense). Setting aside a default judgment can be difficult and requires showing the court good cause for your failure to respond, a predicament you want to avoid.
Properly responding to a federal lawsuit begins with a series of critical first steps.
1. Review the Summons and Complaint
You likely received two key documents:
- The Summons: This is an official notice from the court informing you that you have been sued in federal court and have a limited time to respond
- The Complaint: This is the document filed by the plaintiff which details the Plaintiff’s allegations against you or your company and specifies the relief they are seeking (such as monetary damages, injunctive relief, declaratory judgment, etc.
2. Determine Your Response Deadline
The Federal Rules of Civil Procedure set strict deadlines for responding to a complaint. Your deadline depends on how you received the lawsuit. If you were personally served with the summons and complaint, you must file a response within 21 days. Missing this deadline is the most common reason for a default judgment.
3. Prepare Your Response to the Complaint
You have two primary options for your initial response
A: File an Answer
An answer is a formal pleading where you respond to each allegation in the plaintiff’s complaint by either admitting it, denying it, or stating that you lack sufficient information to do so. The Answer must include affirmative defenses (legal arguments which may defeat the plaintiff’s claim, even if their factual allegations are true); if you fail to include these affirmative defenses, they may be deemed waived. Common affirmative defenses include, but are not limited to the applicable statute of limitations has expired; in a contract case, the plaintiff failed to mitigate damages; a release precludes the claim; the claim is barred by waiver or estoppel; etc.
B: File a Motion to Dismiss
In the alternative, you can file a motion to dismiss the lawsuit, if you believe there is a significant legal defect in the plaintiff’s case that should end it immediately. Common grounds for a motion to dismiss include: lack of subject matter jurisdiction (the federal court does not have the authority to hear this type of case); lack of personal Jurisdiction (the federal court does not have power over you or your business); improper venue (the plaintiff filed the case in the wrong federal district); or failure to state a cause of action (assuming the validity of plaintiff’s Complaint allegations, the allegations do not constitute a valid legal claim). Once again, see our Federal Court Practice Area Page.
4. Preserve All Relevant Information
Once you are aware of the federal lawsuit, you have a obligation to preserve all information that could be relevant to the lawsuit. You must immediately suspend any routine document destruction policies and ensure that no potentially relevant evidence (such as emails, text messages, internal documents, and electronic data) is altered or deleted. Destroying evidence, even negligently, can lead to severe sanctions from the court. See our spoliation column.
Contact Our Federal Litigation Attorneys
Responding to a federal lawsuit involves navigating a complex set of procedural rules where a single misstep can jeopardize your entire case. When you are sued in federal court, you must respond within a limited time. Only an experienced litigation lawyer who handles federal cases can help make the right choices in helping you defend a lawsuit.
The commercial litigators at Barnes & Barnes, P.C. have successfully represented clients in business litigation in federal courts across the country. Call us today at 631-683-2408 to schedule a consultation and learn how we can put our experience in federal court to work for you.
