A process server may hand it to you, or it may arrive by certified mail. But however it gets to you, a summons notifying you that you’ve been sued is bound to raise your blood pressure. Of course, being sued is never pleasant, but it’s often more of a nuisance than a catastrophe. And by knowing the rules, you can greatly improve your chances of winning.

As a first step, check the summons to see how long you have to respond. Typically, you’ll have 21 days or so to file an answer. That’s a key deadline: If you miss it, the plaintiff can have a judgment entered against you by default. So plan ahead. If you’re about to leave on a three-week trip to Australia, call the plaintiff’s lawyer to ask for an extension. Such requests are almost always granted, but get confirmation in writing.

The summons will be accompanied by another document, usually called a complaint, telling what the case is about – perhaps a business contract, or possibly an injury that someone suffered on one of your work sites, or a firing that a former employee feels was improper.

To defend a case that’s more than a minor claim in small claims court, you’ll probably need to hire a lawyer. But if the claim is covered by insurance, the insurance company will hire the lawyer and pick up the tab. Review the complaint with insurance coverage in mind. Depending on your policies, you may be covered for car and truck accidents, slip-and-fall claims, product liability, defamation, loss of a customer’s property, and errors and omissions. If the claim is covered, notify the insurance company promptly so they can take over.

Early resolution

Sometimes you can resolve a case even before you file an answer. If you and the plaintiff are not far apart on the dollars involved, or if the case is minor and defending it will be a big hassle, try to negotiate a settlement.

If that doesn’t work, you can suggest that the dispute be mediated or arbitrated. In mediation, a neutral third party (mediator) works with you and the plaintiff to try to achieve a voluntary settlement. In arbitration, a third party (arbi­trator) is empowered to make a binding decision.

In many business contracts, the parties agree in advance to submit any dispute to mediation or arbitration. If your lawsuit doesn’t trigger such a contract clause, you and the plaintiff can still agree to handle the dispute that way even though the lawsuit has already been filed. Mediation and arbitration are usually quicker and cheaper than lawsuits, and the proceedings are private.

Strategic moves

What if you’re unable to settle the case or to resolve it through mediation or arbitration? You and your lawyer will have to develop a defense strategy. See if you can score a knockout in the first round. There may be a legal reason to have the judge throw out the case.

For example, maybe the plaintiff filed the case after the statute of limitations ran out. Or maybe the law in question requires a written contract and none was signed. Or perhaps the plaintiff is proceeding on a novel legal theory that is not accepted by the courts in your state. Such factors can bring an early dismissal of the lawsuit.

Also, consider filing a counterclaim. Maybe the plaintiff owes you money but you’d decided not to start a lawsuit to collect it. But now, since you’re already in court, it may make sense to sue the plaintiff back. Sometimes a counterclaim will cancel out the plaintiff’s claim, or even put money in your pocket.

No surprises

In all but the smallest cases, each side has the right of pretrial discovery, a process in which you each learn the details of the other side’s position. There should be no sur­prises at trial. To learn about the plaintiff’s evidence, you can:

Send written questions that the plaintiff must answer in writing and under oath.

Require the plaintiff to orally answer questions asked by your lawyer (a process called taking a deposition).

Force the plaintiff to show you and let you copy any letters, contracts or other evidence related to the lawsuit.

Gain access to the plaintiff’s business place to in­spect and photograph any equipment or property condi­tion that may be involved in the lawsuit.

If the plaintiff is claiming your business caused a physical injury, you can require an exam by a doctor of your choosing. In short, you can delve into every nook and cranny of the plaintiff’s case, although the amount you spend to do this should be in proportion to what is at stake. Obviously, it makes no sense to spend $20,000 on pretrial discovery if your maximum exposure is $10,000.

Last chance to settle

To unclog court dockets, judges in many states make a final attempt to resolve lawsuits without a trial. In one state, for example, judges routinely have cases reviewed by a panel of three experienced lawyers. The plaintiff and defendant each take 10 or 15 minutes to present their position to the panel, which then recommends a settlement amount. A party who rejects the panel’s recommenda­tion and then does poorly at trial may have to pay some of the other side’s legal fees.

The risk of having to pay additional costs can be a powerful incentive to settle a lawsuit. Other states use similar methods to head off trials. One way or another, more than 95 percent of lawsuits get settled without a trial.