Understanding Third-Party Subpoenas in Business Litigation

In business litigation, it’s not uncommon for companies or individuals to be drawn into a dispute they aren’t directly involved in. This often happens when one party needs documents or information that are in the hands of someone who isn’t part of the lawsuit. In such cases, a legal tool known as a third-party subpoena (or non-party subpoena) comes into play. 

What is a Third-Party Subpoena?

A third-party subpoena is a legal request for documents, testimony, or other information from someone who isn’t directly involved in the lawsuit. For instance, if two companies are involved in a dispute over a project, and they believe your business holds relevant records, you could receive a third-party subpoena. 

These subpoenas can be used to obtain a wide range of information, including: 

• Medical records

• Financial records

• Employment records

Additionally, you may encounter legal jargon such as a “subpoena deuces tecum” (request for documents) or a “subpoena ad testificandum” (request for testimony), which simply means you may be required to provide documents, testify under oath, or both. 

Read Our Blog: When Is Business Litigation an Emergency 

Legal Obligations for Responding to a Subpoena

If you receive a third-party subpoena, it’s crucial to understand your legal obligations. When a lawyer serves this type of subpoena correctly, you are legally required to comply unless you raise an objection or request protection from the court in a timely manner. Failing to do so could result in waiving your right to object, and you could be held in contempt of court. 

Ignoring a subpoena is a risky move. Some companies mistakenly believe that since they aren’t involved in the lawsuit, they don’t have to respond. However, a third-party subpoena can be enforced in court, and failure to comply can lead to serious legal consequences. 

Common Objections to a Third-Party Subpoena 

If a subpoena feels overly burdensome, confusing, or intrusive, you do have the right to object. Here are some of the most common objections: 

• Unduly Burdensome Requests: If the subpoena asks for too much or requires extensive time and resources to comply, you may have grounds to object.

• Vague or Ambiguous Requests: If you’re not sure what the subpoena is asking for, you can object based on the lack of clarity.

• Confidential or Trade Secrets: If the subpoena demands the release of trade secrets or confidential information, you can raise an objection to protect your business.

It’s essential to raise these objections on time. If you miss the deadline to respond, you lose the opportunity to challenge the request. 

Read Our Blog: How to Prepare for Disputes for Family-Owned Businesses 

Additional Risks of Receiving a Subpoena

Even if you aren’t currently part of the lawsuit, receiving a third-party subpoena could signal that one of the parties is considering adding you to the dispute. They may see your business as having relevant information or, worse, view you as a potential deep pocket for settlement purposes. In such cases, it’s wise to consult with a lawyer to understand your exposure and rights. 

 A third-party subpoena should be taken seriously. Whether you’re asked to provide documents or testify, complying with the subpoena is a legal obligation unless you successfully challenge it. Consulting with an attorney will help you navigate the process, protect your interests, and avoid potential legal pitfalls. 

If your business has received a third-party subpoena or you’re unsure how to respond, it’s important to seek legal guidance. Responding correctly and timely could save you from unnecessary complications or involvement in a dispute that you weren’t originally part of. 

Richards Rodriguez & Skeith offers commercial litigation services for businesses to respond correctly and timely. We can also offer guidance on these issues and navigate a path that works best given your situation. Contact our office today to get started.