Litigation Cost
The total expense of pursuing or defending a lawsuit — including attorney fees, court costs, expert witness fees, discovery expenses, and the time cost of litigation.
Litigation is expensive and unpredictable. Total costs depend on case complexity, attorney billing rates, whether the matter settles or goes to trial, the volume of discovery, and expert witness needs. A simple breach of contract case might cost $15,000–$50,000 to litigate through trial; a complex commercial case or class action can cost millions on each side.
Major cost components: attorney fees (by far the largest), discovery (e-discovery, depositions, document review), expert witnesses ($3,000–$10,000 for standard experts; $500/hour+ for specialized experts like financial economists), court reporter fees, filing and service fees, trial preparation and exhibits, and appeals. Most large cases never reach trial — but the cost of discovery and pre-trial motions alone often exceeds six figures.
Litigation economics matter: a claim worth $50,000 that costs $60,000 to litigate to judgment is a bad investment even if you win. Good attorneys help clients evaluate whether the potential recovery justifies the cost and risk, and will recommend settlement, mediation, or walking away when the math doesn't support fighting. "Being right" is not a sufficient reason to litigate if the economics don't work.
Real-World Example
The business owner's $120,000 contract dispute cost $95,000 in attorney fees and expert costs by the time a jury verdict was returned — a $25,000 net recovery that could have been $100,000 had the defendant's early $80,000 settlement offer been accepted.