A process server just left a summons and complaint at your front desk. What you do in the next 30 days shapes the entire case — because in California, a served defendant generally has 30 days to respond before the plaintiff can move for default. Here is a practical, week-by-week plan for California businesses facing a new lawsuit.
Day 1: Preserve the papers and calendar the deadline
Keep everything you were served with, including the envelope and any attachments. Note the exact date, time, and manner of service — personal delivery, substituted service, or mail — because the response clock depends on it. Under Code of Civil Procedure § 412.20, a defendant served personally must respond within 30 days. Substituted service adds time before service is deemed complete, but do not count on the extra days without confirming them.
If the deadline passes with no response, the plaintiff can request entry of default under CCP § 585. Once default is entered, you generally lose the right to contest liability unless the default is set aside, though the plaintiff still must establish any unliquidated damages — making a set-aside motion one you want to avoid ever needing.
Week 1: Lock down evidence and notify your insurer
Two tasks cannot wait:
- Issue a litigation hold. Tell employees in writing to preserve emails, texts, chat messages, invoices, and files related to the dispute, and suspend any auto-delete settings. Destroying evidence after a suit is filed — including through routine deletion that should have been suspended — can lead to sanctions; intentional destruction can support adverse-inference instructions at trial.
- Give notice to your insurance carriers. Commercial general liability, D&O, E&O, and employment practices policies often cover defense costs for claims you would not expect. Late notice can jeopardize coverage, particularly under claims-made policies, so tender the claim promptly even if you doubt it applies.
Week 2: Retain counsel and assess the complaint
An experienced business litigation attorney will read the complaint differently than you do. Beyond "is this true," counsel evaluates whether the claims are legally sufficient, whether the plaintiff sued the right entity, whether an arbitration clause in your contract takes the case out of court, and whether the statute of limitations has already run on any claim.
Be candid with your lawyer about bad facts. Attorney-client privilege exists so you can share the full story, and surprises discovered mid-case cost far more than early honesty.
Weeks 3–4: Choose your first move
California gives defendants several opening options, each with strategic trade-offs:
- Answer. Deny the allegations and assert affirmative defenses. This is the standard path when the complaint is legally sound but factually disputed.
- Demurrer. A challenge arguing the complaint fails to state a valid claim, due within the same 30-day window under CCP § 430.40. A sustained demurrer can knock out weak causes of action early.
- Motion to strike improper allegations, such as an unsupported punitive damages claim.
- Motion to quash if service was defective or the court lacks jurisdiction over you.
- Anti-SLAPP motion under CCP § 425.16 if the suit targets protected speech or petitioning activity — generally due within 60 days of service and capable of ending targeted claims with a fee award to a prevailing defendant.
- Cross-complaint. If the plaintiff owes you money or breached first, related claims against the plaintiff generally must be filed with your answer or risk being waived.
If you need breathing room, counsel can usually secure an extension by stipulation; California Rule of Court 3.110 permits the parties to extend the response deadline by up to 15 days without court approval.
What not to do
- Do not contact the plaintiff directly once they are represented. Anything you say can appear in a declaration later.
- Do not post about the case or discuss it in company Slack channels beyond those who need to know.
- Do not move assets around. Transfers made after a claim arises can be unwound as voidable under the Uniform Voidable Transactions Act and make you look worse in front of a judge.
- Do not assume the case is frivolous. Even weak cases require a timely response, and ignoring one converts a defensible dispute into a judgment.
Think about the endgame early
Most California business disputes resolve before trial — through negotiation, mediation, or motion practice. The first 30 days are when your leverage is set: a strong responsive pleading, preserved evidence, and a credible cross-complaint all improve your settlement position. Early case assessment should include a realistic budget, an honest read on exposure, and a decision about whether an early settlement overture serves the business better than two years of civil litigation.
Talk to a California business attorney
If your business was just served with a lawsuit, the response deadline is already running — get an assessment of your options before it expires. Schedule a free consultation or call (949) 418-2113.
This article is attorney advertising and provides general information only. It is not legal advice and does not create an attorney–client relationship. Facts matter; consult a lawyer about your specific situation.
