What happens when someone is sued?

Here are the few key steps in a lawsuit:

1. Receive letter of demand: this is a legal letter setting out the demands of the other party. A letter of demand is not the initiation of a lawsuit yet, but if you don't agree to the terms or settle, then it'll move into a lawsuit.
2. Receive writ of summons: Lawsuit has formally begun. You must respond within 8 days, or you'll lose automatically (this is called "default judgement").
3. Respond to writ of summons: Send a formal reply to the other party's legal action.
4. Serve defence pleadings: Evidence and arguments for your case.
5. Discovery: Evidence gathering for both parties
6. Pre-Trial Conference: Usually scheduled within 2 months after writ of summons. This is a meeting chaired by a member of the court to discuss the case, and see whether parties can reach a settlement. Most cases are settled, and don't go to trial.
7. Trial: If no settlement is reached, the case goes to trial.
8. Judgement: Handed down by the judge. Could be months or years after the lawsuit is initially filed, depending on case complexity.

Lawsuits are long, expensive, and highly stressful processes. The cost of a lawsuit can easily add up to several hundred thousand or millions of dollars. If you run a business, strongly consider getting professional indemnity coverage. This coverage can pay for your lawsuit expenses - including lawyer's fees and damages - to take a huge financial burden off your company.

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For further reading on how to defend lawsuits, check out this helpful guide to protect yourself from legal action: https://www.providecover.com/how-to-fight-a-law...