It is very hard on an employee when they find out that their employer is being sued. The first thing that comes to mind for many is “what will happen to me?” It is not unreasonable to ask this question especially if you work at a very small company. The most important part to remember is that even though the company you are working for is being sued, you are not.
A company who is sued and loses is not looked on very kindly by other businesses, especially if they are sued for breach of contract. This kind of suit can ruin a business.
If your company is big and has a large amount of capital, it really should not affect you. They can afford to have an attorney on retainer and get advice when they foresee a problem. If you have a small company, running low on capital it will not have a lot of effect on you either. In fact, if your company is so broke it cannot afford an attorney it will go quickly. The business cannot go to court without an attorney. The business suing will automatically win because the business being sued will forfeit and has no representation.
