When a company in Singapore is served with a lawsuit, it must understand the legal processes involved and act quickly and carefully to protect its legal interests. Lawsuits can have wide-ranging implications—from financial liability to reputational damage—and knowing what to expect at each stage of the process can help minimise disruption. This guide outlines the key steps that typically follow when a Singapore-based company is sued, offering a clear overview of the commercial litigation process from start to finish.
1. Review of the Legal Documents Received
Legal action typically begins when the company receives a formal legal document. This may take the form of a Letter of Demand, which signals an intention to sue, or an Originating Claim (previously known as a Writ of Summons), which indicates that legal proceedings have already commenced.
The Originating Claim outlines the allegations and the remedies sought. It is essential to determine the nature of the document promptly and to avoid missing any legal deadlines. Companies with in-house legal teams should forward the documents internally; those without should consult a general litigation law firm in Singapore without delay to represent them in court, consider the legal issues and advice on the next steps.
2. Appoint Legal Representation
Unlike a human being, under Singapore law, a company cannot act for itself in court, it must appoint a lawyer. Engaging external legal counsel is crucial. Commercial litigation can be complex, and professional legal advice ensures that the company understands the risks, obligations, and possible strategies for defence or settlement. A law firm offering commercial litigation services will assess the claim’s validity, identify any procedural irregularities, and help formulate a response strategy.
It is advisable to seek legal input within 48 hours of receiving an Originating Claim to ensure timely compliance with court requirements.
3. File a Notice of Intention to Contest or Not Contest
Upon receiving an Originating Claim, the company must inform the court whether it intends to dispute the lawsuit. This is done by filing a Notice of Intention to Contest or Not Contest, and failing to submit this document within the required time frame—typically 14 days if served on the company in Singapore—may result in a default judgment being entered against the company.
Although there may be rare strategic reasons not to file a Notice of Intention to Contest, this should only occur under legal advice specific to the company’s circumstances.
4. Verify Proper Service of the Lawsuit
Singapore law requires that legal documents be properly served on the defendant. If there are irregularities in the service process, the company may be able to challenge the lawsuit on procedural grounds. This could delay proceedings or require the claimant to refile the case, giving the defendant more time to prepare a defence or seek settlement.
Legal counsel should be instructed to assess whether the service was conducted according to procedural rules.
5. Begin Internal Fact-Finding
An internal investigation helps clarify the events that led to the dispute. This includes:
- Collecting all documents related to the issue, like contracts, invoices, emails, or messages.
- Talking to employees who were involved or have knowledge of what happened and asking them to document their knowledge by signing Statements.
- Writing down a clear timeline of the events that led to the lawsuit.
The more organised and complete your information is, the easier it will be for your lawyer to understand the case quickly and advice you.
6. Assess the Dispute with Legal Counsel
The company’s internal legal team should work with external lawyers to evaluate the facts and documents to determine what actually occurred, what should have happened (especially in contract disputes), and whether any legal defences apply. A preliminary financial analysis may also be carried out to estimate potential exposure or damages claimed by the opposing party. This early legal assessment is key to developing a sound litigation strategy.
7. Notify Insurers (If Applicable)
Companies should assess whether the lawsuit triggers notification requirements under their insurance policies. Lawsuits involving professional negligence, directors’ liability, or contractual disputes may be covered by policies such as Professional Indemnity or Directors and Officers (D&O) insurance.
Most insurance contracts require timely notification; failing to meet these deadlines could result in a loss of coverage. If coverage applies, the insurer may assist in appointing legal counsel or covering defence costs.
8. File a Formal Defence
Once the Notice of Intention to Contest is filed, the company must submit a formal Defence document. This submission responds to the plaintiff’s claims and may also include counterclaims if the company has grounds to allege wrongdoing by the other party.
Legal counsel will draft the Defence based on the facts gathered and the applicable laws, ensuring all relevant legal arguments are addressed. This document is crucial and will cement the company’s position on the various issues in the claim – it would be advisable to obtain legal advice to ensure that the positions taken in the Defence is legally correct and advantageous to the company.
9. Comply With Discovery Obligations
Thereafter, the litigation process requires both sides to exchange relevant documents and information in a stage called discovery. This ensures that each party shows and has access to the documents in support of its case. If one party believes the other is withholding relevant key documents, the court can be asked to intervene so as to ask the other party to provide the documents.
Discovery plays a critical role in clarifying the factual basis of the dispute.
10. Attend Pre-Trial Conferences
Before a matter proceeds to full trial, the court typically conducts several case management conferences. These sessions help the court monitor the case’s progress, assess the possibility of early settlement, and set deadlines for submission of documents, affidavits and other pre-trial tasks. The court may also give directions aimed at narrowing issues or streamlining the trial process.
11. Attend the Trial (If Necessary)
If no settlement is reached, the case proceeds to trial. Both parties will present their evidence and documents, examine witnesses, and argue their legal positions. The trial duration varies depending on the complexity of the matter and the volume of evidence presented.
At the conclusion of the trial, the judge will deliver a judgment which determines whether the company is liable and, if so, what damages and costs to pay.
12. Appeal or Enforce the Judgment
Following the court’s judgment, the company must either comply with the ruling or, if grounds exist, file an appeal. The timeframe for filing an appeal is typically short—either 14 or 30 days—depending on the court involved.
If the judgment is in the company’s favour and the opposing party does not comply, the other party can enforce the judgment through enforcement measures, such as garnishing bank accounts or seizing assets to satisfy the judgment.
Conclusion
Getting sued is a serious issue that can affect any organisation out of the blue. While inherently challenging, a proactive and well-informed approach, guided by experienced legal professionals, significantly enhances your ability to protect your company’s rights, assets, and reputation throughout the proceedings. Understanding this process is the first crucial step towards managing legal risk and achieving a favourable resolution.
Legal issues don’t have to derail your business. Whether you’re navigating a dispute or looking to prevent one, Doris Chia delivers clear, strategic legal support tailored to your needs. Reach out today to get the reliable counsel your business deserves.
