“They’re Threatening to Sue — Should We Settle or Fight?” How Smart Businesses Handle Legal Threats Before Court Begins

By Jesse David Eisenberg, Esq. | JDE Law Firm, PLLC

You get the email. Or the letter. Or the phone call:

“Our client is prepared to take legal action.”

Whether it’s from a vendor, customer, landlord, or former partner, the message is clear — they’re threatening to sue.

This is the moment where too many businesses freeze — or overreact. Smart businesses? They get strategic before the first motion is ever filed.

Why This Moment Matters More Than You Think

The pre-litigation window is short — but powerful. What you do next determines:

• Whether the case escalates — or ends quietly
• How much leverage you preserve
• What evidence gets protected (or lost)
• How strong your negotiation position becomes

Don’t just react. Assess and position. That’s how businesses win early.

3 Moves to Make Immediately

• Get the full story in writing: Don’t guess. Understand their position — and yours — with documents, dates, and correspondence.
• Lock down your records: Emails, contracts, payments, messages. Don’t let “missing context” cost you later.
• Do not engage emotionally: No angry replies. No promises. Everything from here on is evidence — and leverage.

When Is It Time to Settle?

Settle when:

• You face real exposure and want to control risk
• The cost of defense outweighs the claim
• You can negotiate terms that protect your brand, your cash flow, or future operations

But don’t settle too fast. Early panic settlements often backfire — especially if you don’t yet understand what’s at stake.

When Is It Time to Fight?

Fight when:

• The threat is baseless, inflated, or being used to extract leverage
• You’ve documented your compliance and the facts are on your side
• You need to set a precedent (internally or publicly) that your company won’t cave

And if you're unsure? That’s where legal strategy makes the difference.

The Bottom Line: Act, Don’t React

Legal threats aren’t just about facts — they’re about psychology, timing, and leverage.

📞 If someone is threatening to sue your business, don’t wait for court papers. Let’s build your strategy now:
www.jdelaw.nyc | NY: 718-966-0877 | NJ: 732-490-7120

My business is to protect your business.