The Worst Thing Sellers Can Do After They Receive A Lawsuit From Amazon or Big Brands

If you’ve been sued by a big brand, a small brand, another seller is coming after you, or Amazon is suing you, one of the worst things you can do is not formally respond to that lawsuit because you’re going to end up with what is called a default judgment.

When that happens, what it means is that you’ve lost the case on the merits automatically and now it’s all about how much money you’re going to have to pay.

So, I want to talk to you about how to prevent default judgments from being issued against you and it also will protect you from what’s called statutory damages. If you want to prevent the default, you have to file an answer, which is the formal response to the lawsuit.

That answer should really contain three different sections:

Number one, where you respond to the allegations.

Your responses are going to be either I deny it, I admit it, or I don’t have enough information at my disposal to respond.

The second section is what’s called your affirmative defenses.

An example is that the court has no jurisdiction over you. They sued you in the wrong place or the court doesn’t have what’s called subject matter jurisdiction, which means it belongs in a different courthouse altogether.

The third section is called counterclaims and this is really important for you to know.

Counterclaims are where you assert your claims against whoever sued you. So let’s say a brand is suing you and they made false counterfeit complaints against you. You’re not only going to defend it and say, hey, I didn’t sell anything that was counterfeit, but you’re also going to say you’ve harmed my business. You’ve interfered with my contract with Amazon, and these are two legal claims. I’m coming after you for money damages.

So, if any of you know me, I never push anybody into court. I believe in amicable resolutions as much as possible. But if you receive a lawsuit or you believe that it is about time to stand up and fight for your rights, contact me for a free consultation. I’m happy to talk to you. I’m available to sellers practically seven days a week, morning until night. Don’t be shy. Contact me for a free consultation.