HELP! Our small family business is being sued, no insurance, might lose our business

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lostfaith

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Our family business is being sued for something that did not occur under our control. Our insurance dropped us several years ago stating they no longer covered our "type" of business. We had difficulty finding a policy and didn't have one for years. We finally found one 2 years ago. However, a lawsuit was filed against us this April (a frivilous suit) for an incident that happened before the new insurance coverage took hold. The alleged incident happened at a client's house in a suburban county. The client hired a cleaning service (not through us) and the maid they hired allegedly pricked her finger on a sharp needle while at the clients house. The "damages" to the maid are stomach upset and mental stress. In discovery there was found to be no illness, no loss of work and medical bills were covered by insurance. The maid is not able to produce a needle or even a picture of one. I was surprised to find that the maid service did not have an agreement preventing the maid from suing their own clients. But when I tried to look up this maid service, it was closed. Anyway, the hospital records show the maid did not bring the needle to the hospital. No one has seen a needle ever. The maid named our business as a defendant because one of the people that we referred to the homeowner was there and maybe our person left the needle. We have an agreement signed by all clients and registry workers that we are not an employer, we are a referral service. Everyone understood that. We do not supervise the house nor do we manage households. Our attorney said this was a frivilous suit and there really were no "damages" but we already owe $20k for the defense and no progress has been made. Lots of court filings and discovery and a try at a change of venue. We lost the change of venue so now the case is in Philly and not one event happened in Philly. It got moved to Philly because the maid lives there? The maid does not have any diseases. No one in the house had any diseases. The homeowner did not use needles that we know of. Our person that we referred to work for these people denies using a needle. The client's homeowners insurance hired a lawyer that is dragging everything out. No one wants to settle yet and the maid wants 50K for her mental anguish. I would like to know why. She started up her own maid service a couple months after the alleged event. She did not miss work. She does not have disease. She did not pay for her medical tests. Why wouldn't she save the thing she pricked her finger on? I would have brought it with me to the hospital if I were her. The homeowner NEVER told us they hired a maid service and the person we referred said they didn't know either - that they just showed up that day so how are we in charge of that?

How can people be allowed to do this? I am told we just have to pay pay pay or we will be found responsible by default. I am told that it doesn't matter what is "right" that I just am unlucky to be sued (anyone can sue for anything in civil court and nothing has to be proven and you need to have money to try for justice). OMG! I have to hope we can survive this. Also, not only do we have to pay for a defense that we can't afford, we have to pay to settle because we can't afford the full defense? Additionally, we won't be able to seek justice by a countersuit because when you settle you give up that right. So the only way we can defend ourselves and seek justice is if we had HUGE money to first defend ourselves all the way to court and IF we win we can counter-sue to hold this injustice accountable. So basically if we don't have big $$$ then these people get away with our hard-earned money and possibly our livelyhood and are not held accountable.

Is there any type of program that provides a defense for a small company and then can counter-sue to get their funds reimbursed?

I WANT JUSTICE!! Are there organizations out there that help small companies against things like this for a smaller fee? Please help!!
 
You don't have to wait for a counter suit. Filing a counter suit might cause your plaintiff to back off if it is frivolous.
I don't think you will have much luck finding an organization that will take up your defense, but you could try to find an attorney that will work on contingency for the counter suit, or you could consider continuing pro per.
 
Yes, a the plaintiff can do it; and did do it.
Its called due process.
You've been clobbered you for $20,000, but I'll bet someone advised you to settle?
You were so outraged and refused, because you were right.
Either way, I'll bet the "maid" would have taken $5,000 and eagerly walked away.
This is what stubbornness and pigheadedness will reap.
It is time to make a settlement offer.
She'll take it.
You called her bluff and its costing you.
You'll give her something one way or another.
You'll also pay your legal fees.
I advise my clients to work it out, because court ain't free.
In this case, the meter is still running and its at $20K, plus the maid's cut.
Settle it, sir or madam, settle it!!!
 
We have been asking to settle it - so please don't assume we are stubborn. We were given the opinion that it was frivilous and we were told we could try to settle and we have wanted to, but because the homeowners insurance lawyer won't settle, we can't. It was explained to us that all 3 parties need to settle at the same time or we would still have liability in a cross claim from the homeowners insurance.

And "settle it" is not justice. It's WRONG that it is OK with people that stuff can be fabricated and people just have to pay. Aren't there any organizations that help fight off this abuse of the legal system? Due process is being abused!
 
We have been asking to settle it - so please don't assume we are stubborn. We were given the opinion that it was frivilous and we were told we could try to settle and we have wanted to, but because the homeowners insurance lawyer won't settle, we can't. It was explained to us that all 3 parties need to settle at the same time or we would still have liability in a cross claim from the homeowners insurance.

And "settle it" is not justice. It's WRONG that it is OK with people that stuff can be fabricated and people just have to pay. Aren't there any organizations that help fight off this abuse of the legal system? Due process is being abused!

You can asked to be removed from the other defendants.
In fact, you can indeed offer a settlement and be discharged from the suit.
You might wish to speak to some new lawyers.
There are other ways, far too complicated to be explained here, for you to address this.
 
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