Being served with a lawsuit is one of the most stressful experiences a business owner can face. The envelope arrives, the summons looks intimidating, and the natural instinct is either to panic or to ignore it and hope it goes away. Both responses are wrong. What you do in the first 30 days after being served can determine whether the case costs you $20,000 or $200,000—and whether you win or lose.

This guide provides a day-by-day framework for California business owners who have been served with a civil complaint. Every step is grounded in the California Code of Civil Procedure and our experience defending businesses in Orange County and throughout the state.

Day 1: Read the Summons and Complaint Carefully

The summons will state the deadline to respond. In California, a defendant served personally has 30 calendar days to file a responsive pleading (CCP § 412.20(a)(3)). If served by substitute service, the deadline is 30 days after the date of mailing of the copy (CCP § 415.20). If served out of state, the deadline may be extended to 30 days from the date of service plus additional time for mailing.

Read the complaint to understand what the plaintiff is claiming, what causes of action are alleged (breach of contract, negligence, fraud, etc.), what damages are sought, and who is named as a defendant (the business entity, you personally, or both).

Days 1–3: Do Not Contact the Plaintiff or Discuss the Case

Do not call the plaintiff to "work things out." Do not email the plaintiff's attorney. Do not post about the lawsuit on social media. Do not discuss the substance of the claims with employees, business partners, or anyone who is not your attorney. Anything you say can and will be used against you in the litigation. The attorney-client privilege protects communications between you and your lawyer. It does not protect conversations with friends, family, or colleagues.

Days 1–5: Contact Your Insurance Carrier

Review every insurance policy your business maintains: general liability, professional liability (E&O), employment practices liability (EPLI), commercial auto, directors and officers (D&O), and cyber liability. Many lawsuits trigger a duty to defend under one or more policies, which means the insurance company will pay for your defense attorney—even if the claim is ultimately not covered.

The duty to defend is broader than the duty to indemnify. Under California law (Gray v. Zurich Insurance Co. (1966) 65 Cal.2d 263), an insurer must defend if any claim in the complaint is potentially covered by the policy. Notify your carrier in writing immediately, even if you are not sure the claim is covered. Late notice can be grounds for the insurer to deny coverage.

Days 3–10: Hire a Business Litigation Attorney

If your insurance carrier does not provide a defense attorney (or if the claim is not covered), you need to hire one. When evaluating counsel, consider their experience with the specific type of claim alleged, their familiarity with the court where the case is filed, and their willingness to discuss litigation strategy and budget upfront.

Ask the following questions during your initial consultation: What is your experience with this type of case? What is the likely range of outcomes? What will the first 90 days of defense cost? Is there a viable early-resolution strategy? What discovery will be required?

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Days 5–15: Preserve All Documents and Evidence

The moment a lawsuit is filed, you have a legal obligation to preserve all documents and electronically stored information (ESI) that may be relevant to the claims. This includes emails, text messages, contracts, invoices, internal memos, personnel files, financial records, and electronic files. Destroying or altering evidence after litigation has commenced—even accidentally—can result in severe sanctions, including adverse inference instructions or terminating sanctions (CCP § 2023.030).

Issue a litigation hold. Your attorney will help you draft and distribute a litigation hold notice to every employee and custodian who may possess relevant documents. The hold notice should instruct recipients to preserve all potentially relevant materials and to suspend any routine document-destruction policies for the duration of the litigation.

Days 10–25: Develop Your Response Strategy

Your attorney will evaluate the complaint and recommend one of several responsive pleadings:

•        Answer. Respond to each allegation in the complaint by admitting, denying, or stating you lack sufficient information. Assert all affirmative defenses (statute of limitations, failure to mitigate, comparative fault, etc.).

•        Demurrer. Challenge the legal sufficiency of the complaint. A demurrer argues that even if every fact alleged is true, the plaintiff has not stated a valid cause of action (CCP § 430.10). Filing a demurrer automatically extends your time to file an answer.

•        Motion to Strike. Under CCP § 435, you can move to strike irrelevant, false, or improper allegations from the complaint, including requests for punitive damages that lack adequate factual support.

•        Anti-SLAPP Motion. If the lawsuit arises from your exercise of free speech or petition rights (e.g., filing a complaint with a government agency, posting an online review), you may be able to dismiss the case early under California's anti-SLAPP statute (CCP § 425.16) and recover your attorney's fees.

•        Cross-Complaint. If you have claims against the plaintiff (or third parties), your attorney may file a cross-complaint at the same time as your answer.

Day 30: File Your Response

Your responsive pleading must be filed with the court and served on the plaintiff before the deadline expires. Missing this deadline, even by a single day, can result in a default. If you need additional time, your attorney can contact the plaintiff's attorney to request a stipulated extension (a common courtesy in California practice), or file an ex parte application for an extension with the court.

Summary: First 30 Days Checklist

Frequently Asked Questions

Q: What happens if I miss the 30-day deadline to respond?

A: The plaintiff can file a Request for Entry of Default (CCP § 585), and the court may enter a default judgment against you for the full amount of damages claimed. Setting aside a default requires filing a motion under CCP § 473(b) and showing excusable neglect or mistake. The motion must typically be filed within six months of the default entry.

Q: Can I represent my business myself in court?

A: An individual sole proprietor can represent themselves. However, under California law, a corporation, LLC, or partnership must be represented by a licensed attorney in court proceedings. An unrepresented entity risks having its pleadings stricken and a default entered against it.

Q: Will my general liability insurance cover the lawsuit?

A: It depends on the nature of the claim. General liability typically covers bodily injury and property damage claims. It does not typically cover breach of contract, employment disputes, or intentional acts. Review your policy declarations and exclusions carefully. Professional liability (E&O) and EPLI policies may cover claims that general liability does not.

Q: Should I try to settle early?

A: It depends on the merits and economics. Settlement in the first 60 days—before significant discovery costs are incurred—is often the most cost-effective outcome if liability is clear or the exposure is modest. Your attorney can evaluate whether early settlement discussions are appropriate.

Need help? Contact Kolmogorov Law, P.C. at (909) 235-6116 or visit the contact us page to schedule a consultation with our business litigation team in Irvine, California.