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I have been sued by a company that went out of business

Customer Question
during the time they were...
I have been sued by a company that went out of business during the time they were performing services for us. They stopped communicating with us while we had work in their shop! It wasn't until several days later, we learned they were closing. They delivered our work late and in some cases incorrectly. We'd like to work towards a settlement of the amount owed since their actions costs us credibility and business with our clients at that time. What is the best way to answer?
Submitted: 2 years ago.Category: Business Law
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Answered in 14 minutes by:
1/21/2016
Business Lawyer: Asad Rahman, Attorney replied 2 years ago
Asad Rahman
Asad Rahman, Attorney
Category: Business Law
Satisfied Customers: 2,467
Experience: Practicing Attorney with 10 years experience
Verified

Since they have sued you need to file an answer where you respond to the allegations and deny what they are claiming. You also include your counter claims identifying the times they breached their contract with you.

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Customer reply replied 2 years ago
Is the counter part of my answer or is that a separate form?
Customer reply replied 2 years ago
Or do I just state my counter claim in my answer.
Business Lawyer: Asad Rahman, Attorney replied 2 years ago

Most assert counterclaims in the Original Answer itself.

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Customer reply replied 2 years ago
The letter from their attorney stayed I had 14 days to respond. I was told that in the state of Tx the response time is 20 days. Do you know which I need to go by?
Customer reply replied 2 years ago
If I want to settle at what point do I let them know that?
Business Lawyer: Asad Rahman, Attorney replied 2 years ago

What court did they file in? You can settle at anytime, but you need to at least file an answer and assert counterclaims to give yourself some leverage.

Would you like to talk by phone as I practice in Texas. There are additional charges by just answer however.

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Customer reply replied 2 years ago
Dallas
County.
JP court precinct 3 place 2
Judge Steven Seider
Customer reply replied 2 years ago
Richardson, Texas
Business Lawyer: Asad Rahman, Attorney replied 2 years ago

The service papers should indicate when you are required to respond but if you have been sued in Justice of the Peace Court, you must file an Original Answer by 10:00 a.m. on the next Monday, following the expiration of 10 days from the date the Petition was served upon you which may be why the attorney said 14 days.

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Customer reply replied 2 years ago
Okay. Then we will file an answer tomorrow with that court. Are you in the Dallas area
Business Lawyer: Asad Rahman, Attorney replied 2 years ago

Yes, I'm based out of Frisco. I do not do litigation but I'm happy to provide assistance in perhaps working the settlement with you. I would charge separately through my practice however.

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Customer reply replied 2 years ago
How much would you charge for that?
Business Lawyer: Asad Rahman, Attorney replied 2 years ago

I would need to know all the facts and issues going on to accurately quote you. I do a lot of fixed fee arrangements so that it is irrelevant how much time I end up spending. I do say get your answer filed and add those counterclaims for their poor performance and breaches so that you have leverage. My number is(###) ###-####if you want to consult or if you want to talk tonight, JustAnswer charges a fee for phone calls.

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Customer reply replied 2 years ago
I will call you tomorrow once we have filed our answer.
Business Lawyer: Asad Rahman, Attorney replied 2 years ago

Sure. If you can accept and rate this answer, then I get paid for this answer and I can close it out.

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Business Lawyer: Asad Rahman, Attorney replied 2 years ago

One more thing to point out in your answer, that since there company is no longer in business, then they lack "standing" to file a claim. The judge may or may not agree ultimately but it is one more thing for them to consider if your intent is to settle anyway.

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Business Lawyer: Asad Rahman, Attorney replied 2 years ago

If you can accept and rate this answer, then I get paid for this answer and I can close it out.

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Business Lawyer: Asad Rahman, Attorney replied 2 years ago

Wanted to check in and see if you still needed to talk. If not please accept the answer so we can close it out.

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DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

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