Everyone has their own reasons for filing a lawsuit. But keep in mind that lawsuits can be expensive; chances are, you’ll have to shell out a lot of money in lawyer fees and court costs. That’s why you should take steps to minimize litigation costs, as doing so can save you thousands—even millions—of dollars.
Litigation costs can be a big factor in the cost of doing business. Those sued may want to avoid these costs, but it’s not always possible. In some cases, such costs are inevitable and can be often more than litigation fees. Because of this, some companies are looking for ways to minimize litigation costs.
Here are some steps you can take to lower your litigation costs.
Focus on saving litigation costs
Yet, many companies don’t realize that litigation risk can affect their long-term finances. While there’s no single way to reduce litigation costs dramatically, several important steps can be taken that can have a big impact on litigation expenses.
Implement early, low-cost settlements
Implement early, low-cost settlements. Litigation costs can be minimized if a case can be resolved before filing it. Several key strategies can be employed when proactively attempting to resolve a case. The first key strategy is finding and using neutral experts. Licensed, independent experts can help the parties evaluate the merits of a case. Freeing the expert from testifying at trial promotes early settlement.
Choose the right venue
The location of your case is a choice with serious financial consequences. Whether you are a defendant or a plaintiff, your choice of venue for litigation can mean the difference between winning and losing.
Seek expert help
Litigation costs continue to rise, and putting off a legal problem will only create bigger problems. Whether you are facing a lawsuit or have a situation in which a legal dispute may arise, seek expert help as early as possible. This can help minimize litigation costs and the risks of a trial and loss.
Consult with local counsel
Consult a local attorney before filing a suit. Local attorneys can review the facts of your case and advise you on the facts of law that may also apply to your case. They can also make sure that you are aware of local rules and regulations that may impact the case.
Make informed decisions
If there’s one thing we have learned from working with thousands of attorneys on contingency cases, clients often don’t fully realize the full extent of the litigation costs they will face when pursuing a case. While the initial costs of litigation can be shocking, these costs can quickly spiral out of control as more depositions, expert witnesses, and experts are retained.
Litigation costs can get out of hand quickly. Parties can conduct document searches that saturate their budgets, and defense attorneys can rally to their client’s defense. As a result, even minor disputes can become protracted and expensive.
For many small businesses, litigation is an expensive and unpredictable part of doing business. Unfortunately, the problem can’t be solved with a one-shot solution; instead, you have to look for ways to minimize costs continually.
In the apportionment of such costs, the courts do not usually rewrite the meaning of terms in an agreement. Instead, they go to the language of the contract and the parties intentions. The language of the parties’ agreement, combined with the circumstances and purpose, is determinative of whether costs should be apportioned.
The best way to minimize litigation costs is to design your policies, procedures, and practices so that they can withstand substantial judicial scrutiny. If you must litigate, you should consider engaging outside counsel as early as possible.