If your business in New Brunswick is sued for negligence, you must act quickly. You generally have only 20 days to file a Statement of Defence if served within the province. Your immediate first step should be to notify your commercial insurance provider, as they will typically hire a law firm to defend you and cover the legal fees.
Discovering that your business is being sued can be a terrifying experience. Whether a customer slipped on an icy sidewalk outside your store, a product you sold caused an injury, or a client claims your professional advice led to severe financial loss, negligence claims can threaten the survival of your company. Ignoring a lawsuit will only make the situation exponentially worse.
In this guide, we will explain exactly what steps to take if your business is sued for negligence in New Brunswick in 2026. 🔍 We will outline the legal timeline you must follow at the Court of King’s Bench, the vital role your insurance company plays, and how to protect your assets whether you operate out of Moncton, Saint John, or Fredericton. Staying calm and acting swiftly is the key to a successful defence.
Step-by-Step Process in New Brunswick
A negligence lawsuit begins when you are served with a Notice of Action and Statement of Claim. This document outlines the plaintiff’s allegations and the amount of money they are demanding. You must take the situation seriously from the moment the document touches your hands.
Step 1: Do Not Ignore It and Do Not Speak to the Plaintiff
Your first instinct might be to call the person suing you to “work things out.” Do not do this. 🤰 Anything you say can be used as an admission of guilt. Do not apologize, and certainly do not offer them money directly. Furthermore, failing to respond to the claim within the strict legal deadline will result in a default judgment, meaning you lose the case automatically.
Step 2: Notify Your Commercial Insurance Provider
If you have Commercial General Liability (CGL) insurance, or Professional Liability insurance (Errors and Omissions), you must contact your broker immediately. Insurance policies require you to notify them promptly when a claim is made. In most cases, your insurance company has a “duty to defend.” They will hire and pay for a commercial litigation law firm to represent your business.
Step 3: Retain a Lawyer and File a Statement of Defence
If you are uninsured, or if the claim exceeds your policy limits, you must quickly hire your own corporate lawyer. ✍ Your lawyer will draft and file a Statement of Defence at the local Court of King’s Bench. If you were served in New Brunswick, this must be filed within 20 days. The defence will outline why your business was not negligent, perhaps citing that the plaintiff ignored safety warnings or was entirely at fault.
Step 4: Preserve All Evidence
You have a legal obligation to preserve any evidence related to the claim. If the lawsuit involves a slip and fall, save the security camera footage immediately before it is overwritten. Do not delete emails, destroy maintenance logs, or alter any employee records. Destroying evidence (spoliation) can result in severe legal penalties and could void your insurance coverage.
How Much Does it Cost in New Brunswick?
Defending a commercial negligence claim can be a massive financial burden, which is why having robust business insurance is critical. 💸
- With Insurance: If your insurance covers the claim, your out-of-pocket expenses are usually limited to your policy deductible (often $1,000 to $5,000 CAD). The insurer covers the hefty lawyer fees and any potential settlement or judgment up to your policy limit.
- Without Insurance (Lawyer Fees): If you must pay out of pocket, corporate defence lawyers in New Brunswick charge $300 to $550 CAD per hour. Drafting a basic defence costs $2,000 to $4,000 CAD.
- Court Filing Fees: Filing a Statement of Defence at the Court of King’s Bench typically incurs a nominal administrative fee of around $50 CAD.
- Full Trial Costs: Defending a complex negligence case all the way through discoveries to a trial verdict can cost an uninsured business anywhere from $30,000 to $100,000+ CAD.
| Insurance Scenario | Legal Representation | Estimated Business Cost (CAD) |
|---|---|---|
| Fully Insured | Lawyer provided by the insurer | $1,000 – $5,000 (Deductible only) |
| Uninsured (Settlement) | Private law firm retained by you | $10,000 – $25,000+ |
| Uninsured (Full Trial) | Private law firm retained by you | $30,000 – $100,000+ |
How Long Does the Process Take?
Negligence lawsuits are rarely resolved overnight. 🕐 You have just 20 days to submit your initial Statement of Defence. However, the subsequent process of gathering evidence, exchanging documents (discovery), and conducting mediations takes much longer. A standard commercial negligence lawsuit in New Brunswick takes about 1 to 2 years to reach a settlement. If the case proceeds to a full trial, it can take 3 to 4 years before a judge delivers a verdict.
Frequently Asked Questions (FAQ)
Can I be held personally liable if my business is sued?
If your business is properly incorporated, your personal assets (like your home) are generally protected by the “corporate veil.” However, if you operate as a sole proprietorship, you are personally responsible for the business’s liabilities.
What is a default judgment?
A default judgment occurs if you fail to file a Statement of Defence within the legal time limit (usually 20 days). The court assumes the plaintiff’s claims are true and orders you to pay the demanded damages without a trial.
Will my insurance company cancel my policy if I am sued?
Not immediately, but filing a major claim can cause your insurance premiums to rise upon renewal. In cases of severe or repeated negligence, the insurer may choose not to renew your policy next year.
What if the plaintiff is partially at fault for their own injury?
New Brunswick follows the principle of “contributory negligence.” If your lawyer can prove the plaintiff ignored warnings or acted recklessly, the damages your business has to pay can be significantly reduced.
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