Legal Environment

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First off Company X would bring the lawsuit to a State Trial Court of General Jurisdiction. These courts hold a wide variety of cases such as civil disputes and criminal prosecution. Although if Company X is planning on suing for less than 5,000 dollars they may bring the case to a Small Claims Court.

Secondly, necessary pleadings need to be filed in order for this case to be brought to court. First off Company X would have to file a Plaintiff’s Complaint with the appropriate court. This complaint must hold a statement alleging the facts necessary for the court to take jurisdiction, a statement of the facts necessary to show the plaintiff is entitled to their money, and a statement of how much money Company X would like to receive. Complaints can vary in length depending on the case and rules of jurisdiction.

Now after the plaintiff’s complaint was submitted Company Y will be issued a summons and a copy of the plaintiff’s complaint. A summons is a document informing company Y that they must file an answer to the complaint with both the court and the plaintiff’s attorney within a specific period of time. A summons will also inform Company Y that failure to respond may result in a default judgement, which means Company X could possibly receive the damages alleged in their complaint. Company Y now has to provide an answer which either admits the allegations are true or denies them and outlines any defenses that the company might have. At this time Company Y will also have the opportunity to file a counterclaim in which they will now being suing Company X as well.

Now assuming that Company X won the lawsuit and in return Company Y wants to appeal the court’s decision, they must understand that they need legitimate grounds to file an appeal. If Company Y has reasons for the appeal a notice of appeal must be filed with the clerk of the trial court. This case would now move up to the State Courts of Appeals. Because these companies are based in Pennsylvania...
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