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Ask Asad Rahman Your Own Question
Asad Rahman
Asad Rahman, Lawyer
Category: Employment Law
Satisfied Customers: 2156
Experience:  Practicing Attorney with 10 years experience
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I have been sued by a company that went out of business

Customer Question

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: 1 year ago.
Category: Employment Law
Expert:  Asad Rahman replied 1 year ago.

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.

Customer: replied 1 year ago.
Is the counter part of my answer or is that a separate form?
Customer: replied 1 year ago.
Or do I just state my counter claim in my answer.
Expert:  Asad Rahman replied 1 year ago.

Most assert counterclaims in the Original Answer itself.

Customer: replied 1 year 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: replied 1 year ago.
If I want to settle at what point do I let them know that?
Expert:  Asad Rahman replied 1 year 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.

Customer: replied 1 year ago.
Dallas
County.
JP court precinct 3 place 2
Judge Steven Seider
Customer: replied 1 year ago.
Richardson, Texas
Expert:  Asad Rahman replied 1 year 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.

Customer: replied 1 year ago.
Okay. Then we will file an answer tomorrow with that court. Are you in the Dallas area
Expert:  Asad Rahman replied 1 year 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.

Customer: replied 1 year ago.
How much would you charge for that?
Expert:  Asad Rahman replied 1 year 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.

Customer: replied 1 year ago.
I will call you tomorrow once we have filed our answer.
Expert:  Asad Rahman replied 1 year ago.

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

Expert:  Asad Rahman replied 1 year 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.

Expert:  Asad Rahman replied 1 year ago.

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

Expert:  Asad Rahman replied 1 year 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.