
Thinking about filing a lawsuit? Many plaintiffs underestimate the financial burden of litigation until they are deep in the legal process.
Pursuing civil justice comes at a price, as lawsuits can be both costly and time-consuming.
Plaintiffs (the party that files a lawsuit) must be financially prepared to cover various of litigation expenses, including attorney fees, court costs, expert witness fees, and other legal costs that arise throughout the legal process.
The high costs of litigation can be overwhelming and a barrier to justice. From initial filings to trial preparation, every stage requires financial investment.
Many lawsuits take months or even years to resolve, leading to prolonged financial strain. Understanding these costs allows plaintiffs to make informed decisions and consider financing options to ease the burden.
This guide breaks down the real cost of litigation, covering attorney fees, court expenses, discovery costs, and financing options.
Whether youโre a plaintiff pursuing compensation for personal injury, a contract dispute, or employment claims, understanding these legal expenses upfront can help you make smarter financial decisions and avoid unnecessary financial strain.
How Much Does a Lawsuit Cost?
๐ก The cost of a lawsuit varies widely depending on the type of case, attorney fees, and whether the case goes to trial. Below are the estimated costs for different legal matters:
Lawsuit Costs by Case Type: Attorney Fees, Trial Expenses & Legal Fees
Lawsuit Type | Average Cost Range | Key Cost Factors | Attorney Fee Structure |
---|---|---|---|
Personal Injury | $10,000 - $100,000+ | Contingency fees (30%-40%), expert witnesses, medical records | Contingency-based (No upfront cost) |
Employment Litigation | $15,000 - $200,000+ | Attorney hourly fees, depositions, legal motions | Hourly fees or contingency |
Contract Disputes | $20,000 - $500,000+ | Attorney hourly fees, court fees, business valuations | Hourly ($100 - $1,000/hr) |
Medical Malpractice | $50,000 - $500,000+ | Expert witnesses, contingency fees (25%-40%) | Contingency or hybrid fees |
Class Actions | $1M - $50M+ in Legal Costs | Shared attorney fees, extensive legal research | Shared contingency |
Defamation & Libel | $15,000 - $100,000+ | Media experts, legal research, attorney hourly fees | Hourly, flat fee, or hybrid (rarely contingency) |
The Main Costs of Litigation for Plaintiffs
Different types of lawsuits have varying cost ranges, with factors such as attorney fees and expert witness costs significantly impacting the total expenses.
Attorney Fees: The Largest Expense in Litigation
For most plaintiffs, attorney fees are the most significant cost associated with litigation. Attorneys charge for their expertise and time, and their fee structure varies depending on the type of case and agreement with the client.
Common Attorney Fee Structures
- Contingency Fees: Many plaintiffs, especially in personal injury cases, work with attorneys on a contingency basis (“no-win, no-fee”). This means the lawyer does not charge upfront fees but takes a percentage of the settlement or court award. This percentage typically ranges between 30% and 40% of the final amount. While this arrangement reduces the immediate financial burden, it significantly impacts the plaintiff’s net compensation.
- Hourly Fees: Some plaintiffs, particularly in contract disputes or business litigation, may need to hire attorneys who charge by the hour. Rates vary based on location, experience, and case complexity but typically range from $100 to $1,000 per hour. This model can become costly, especially if a case lasts several months or years.
- Retainers & Flat Fees: In some cases, attorneys require a retainer feeโa lump sum paid upfront to secure their services. The lawyer then bills against this amount. Flat fees may also apply for specific legal tasks, such as drafting contracts or filing motions.
Hybrid Fee Agreements: A Middle Ground in High-Stakes Cases
In complex litigation, some attorneys offer hybrid fee agreements, which combine elements of contingency and hourly fees to balance risk and reward.
These arrangements are more common in high-stakes business disputes, intellectual property litigation, and complex personal injury cases where attorneys need compensation during litigation but also share in the caseโs success.
Hereโs an overview of the most common hybrid attorney fee arrangements:
- Partial Contingency + Hourly Fee: The plaintiff pays a reduced hourly rate, and the attorney also takes a lower-than-usual contingency percentage upon winning.
- Fixed Fee + Success Bonus: Some attorneys charge a fixed upfront fee for case preparation and then receive a success-based bonus if the case results in a favorable outcome.
- Tiered Contingency: Instead of a flat percentage, the contingency fee increases if the case progresses to trial rather than settling early.
Before committing to any fee structure, plaintiffs should discuss options with their attorney and carefully review the terms of the agreement to ensure alignment with their financial situation and case strategy.
โ๏ธ Need a lawyer? Learn what to expect in our guide: Whatโs Included in a Free Consultation With an Attorney
Court Filing and Administrative Fees
Filing a lawsuit involves court fees that vary by jurisdiction. Plaintiffs must pay these fees to initiate a case and for various motions and legal filings throughout the proceedings.
- Filing Fees: The initial cost to file a lawsuit ranges from $50 to $500+, depending on the court and case type.
- Motion & Hearing Fees: Plaintiffs may need to file motions for case-related requests, such as seeking an injunction or compelling evidence disclosure. Each motion incurs additional costs ranging from $100 to $500 per motion.
- Service of Process Fees: Plaintiffs must serve legal documents to the defendant, which can cost between $50 and $200 per party. In some cases, if the defendant is difficult to locate, hiring a process server can add further expenses.
Discovery and Evidence Gathering Costs
The discovery phase is one of the most expensive aspects of litigation. During discovery, the plaintiffโs attorney must gather evidence, depose witnesses, and retrieve necessary documents.
- Depositions: Witness depositions require a court reporter, transcription services, and sometimes videographers. These costs can range from $500 to $1,500 per deposition.
- Medical Records & Document Retrieval: In personal injury cases, obtaining medical records, accident reports, and expert evaluations can cost thousands of dollars.
- E-Discovery Fees: If a case involves emails, social media, or digital evidence, data processing and forensic analysis can significantly increase litigation costs. Advanced electronic discovery tools can cost anywhere from $5,000 to $50,000+.
Expert Witness Costs
Some cases require expert witnesses to provide specialized testimony to support a plaintiffโs claim. These experts can be essential in proving damages or liability but come at a high price.
- Medical Experts: Plaintiffs in personal injury or medical malpractice cases often need physicians or specialists to testify. Fees can range from $250 to $1,000+ per hour, including the cost of reviewing medical records and preparing reports.
- Accident Reconstruction Experts: In auto accident cases, experts may need to reconstruct the scene to determine fault, costing $2,000 to $10,000+.
- Financial Experts: Economists or forensic accountants analyze lost wages or damages in employment or business-related lawsuits. Their services can cost $300 to $800 per hour.
Trial Costs: The Most Expensive Phase
If a case proceeds to trial, costs escalate quickly due to courtroom preparation and extended attorney fees.
- Jury Fees: Some jurisdictions charge plaintiffs a fee to impanel a jury, which can range from $5 to $150, depending on the jurisdiction. For example, in California, at least one party from both sides (plaintiff and defendant) of a civil lawsuit must pay a $150 nonrefundable jury deposit fee to secure a jury trial.
- Courtroom Presentation Costs: Creating visual aids, demonstrative exhibits, and legal briefs for trial presentations can add another $5,000 to $20,000.
- Attorney Fees During Trial: A single day in court can cost thousands of dollars in attorney fees (hourly, with full trials spanning weeks or months.
The cost of litigation varies depending on the type of lawsuit, legal fee structure, and need for expert witnesses. Below is a summary of estimated costs across different case types:
Estimated Total Cost of Litigation by Case Type: Attorney and Expert Witness Costs
Case Type | Attorney Fee Structure | Expert Witness Costs | Estimated Total Cost Range |
---|---|---|---|
Personal Injury | Contingency (30%-40%) | $250-$1,000+ per hour | $10,000 - $100,000+ |
Employment Litigation | Hourly or Contingency | $300-$800 per hour | $15,000 - $200,000+ |
Contract Disputes | Hourly ($100-$1,000/hr) | $300-$800 per hour | $20,000 - $500,000+ |
Medical Malpractice | Contingency (25%-40%) | $500-$1,500+ per hour | $50,000 - $500,000+ |
Class Action Lawsuits | Contingency (Shared) | Varies by case | $Millions in legal expenses |
Defamation and Libel | Hourly or Flat Fee | $200-$500+ per hour | $15,000 - $100,000+ |
Hidden and Indirect Lawsuit Costs for Plaintiffs
Lost Wages & Financial Burden
Many plaintiffs, especially in personal injury cases, experience financial hardship while waiting for a case resolution. Missed workdays for court appearances, depositions, or medical evaluations can result in lost income, making it harder to stay financially stable during litigation.
Out-of-Pocket Medical Expenses
In personal injury cases, plaintiffs often struggle to cover medical bills while waiting for a settlement. If they do not have health insurance, these costs can accumulate quickly, leading to financial distress.
Emotional & Psychological Stress
Litigation is not just financially draining but also emotionally exhausting. The uncertainty of a case’s outcome and prolonged legal battles can take a toll on a plaintiff’s mental well-being.
Types of Cases and Their Impact on Legal Expenses
The type of lawsuit a plaintiff pursues significantly impacts the total cost of litigation. Some cases require specialized attorneys, expert witnesses, or extended legal proceedings, increasing financial burdens. Below are the common types of lawsuits and how they influence litigation expenses:
Personal Injury Cases and Mass Torts
Personal injury and mass tort lawsuits seek compensation for physical or psychological harm caused by another partyโs negligence or misconduct.
These cases often operate on a contingency fee basis, meaning attorneys receive a percentage of the final settlement or court award rather than charging upfront fees.
However, expenses such as medical expert testimonies, accident reconstruction, and prolonged negotiations can significantly increase litigation costs.
While these expenses are typically advanced by personal injury attorneys, they are later deducted from the settlement or judgment, reducing the plaintiffโs final compensation.
Employment Litigation
Employment lawsuits arise from claims of wrongful termination, workplace discrimination, harassment, or wage disputes. These cases often require extensive documentation, witness depositions, and complex legal arguments.
Litigation costs can vary widely depending on whether the dispute is settled through mediation, arbitration, or proceeds to trial.
Contract Disputes
The cost of business and personal contract disputes varies depending on case complexity and the need for financial experts.
While simple contract disagreements may be resolved quickly through negotiation or mediation, high-stakes disputes, such as breaches involving corporate entities or large financial contracts, often lead to prolonged and costly litigation.
Medical Malpractice Lawsuits
Medical malpractice cases are among the most expensive types of litigation due to the need for extensive medical records, expert testimonies, and forensic analysis. These cases often take years to resolve and typically follow a contingency fee structure, where attorneys charge 25% to 40% of the final judgment or settlement.
Additionally, the high cost of medical experts and specialists can further increase litigation expenses, ultimately reducing the plaintiffโs final payout.
Class Action Lawsuits
Class actions involve multiple plaintiffs suing a single defendant, with a court-appointed lead plaintiff representing the group. These lawsuits are commonly used in cases of product liability, consumer fraud, or environmental harm.
Typically, plaintiffs do not pay upfront costs, as legal fees are deducted from the final settlement or judgment and shared among all claimants.
However, the costs can still be substantial, with many class actions reaching millions in legal expenses, yet only netting each claimant well under $100.
Class Action Payouts vs. Attorney Fees: A Real-World Example
For example, in the Yahoo Data Breach class action lawsuit, attorneys were awarded up to $30 million in legal fees as part of the settlement, while most class members received $61.08 or less.
This disparity occurred because class action legal fees are typically calculated as a percentage of the overall settlement fund, which in this case totaled $117.5 million.
Given the complexity of the case, years of litigation, and extensive legal work involved, the court approved the attorneysโ fees, even though individual payouts to affected users were relatively small due to the large number of claimants.
Defamation Lawsuits: Slander and Libel Cases
Plaintiffs in defamation cases must prove reputational harm, often relying on media experts, forensic analysis, and extensive legal research. Litigation costs can vary significantly based on jurisdiction, case complexity, and the need for expert testimony.
Litigation Financing: How Plaintiffs Can Manage Lawsuit Costs
Pre-Settlement Funding: A Financial Lifeline for Plaintiffs
Pre-settlement funding, often called pending lawsuit loans, provides plaintiffs with a risk-free cash advance based on their anticipated settlement. Unlike traditional loans, this type of litigation financing is non-recourse, meaning repayment is only required if the plaintiff wins the case.
- Who Qualifies? Personal injury, wrongful death, medical malpractice, and employment discrimination plaintiffs often qualify for legal funding.
- Advantages: Covers medical bills, living expenses, and other costs while waiting for a settlement.
- Risks: Interest rates are higher than collateral loans and can significantly reduce the final payout from a lawsuit.
๐ฐ Learn how pre-settlement funding is risk-free in our guide: Guaranteed Pre-settlement Funding: Eligibility & Approval
Negotiating Attorney Fees
To reduce legal costs, plaintiffs can negotiate contingency fee percentages, request fee caps, or explore alternative fee arrangements.
Exploring Alternative Dispute Resolution (ADR)
Mediation or arbitration can be cost-effective alternatives to litigation. Settling out of court often results in faster resolutions and lower expenses.
How to Lower Your Litigation Costs: Practical Strategies
- Request fee caps for hourly billing.
- Choose limited-scope representation for specific legal tasks.
- Use pro bono or legal aid services when available.
Conclusion: Managing the Costs of Litigation for Plaintiffs
Litigation is expensive, but understanding the potential costs allows plaintiffs to plan ahead and make informed decisions. From attorney fees to expert witnesses and trial expenses, every stage of a lawsuit requires financial preparation.
Exploring options like pre-settlement funding, negotiating legal fees, and considering early settlement opportunities can help reduce financial strain.
Before proceeding with a lawsuit, plaintiffs should assess their financial readiness, ask their attorney about expected costs, and explore financing solutions if necessary. Justice should not come at the cost of financial ruinโproper planning can help plaintiffs navigate the legal system while maintaining stability.
Alternative dispute resolution methods, such as mediation or arbitration, can provide faster and more cost-effective solutions than trial. Seeking guidance from financial advisors or litigation finance experts can also help plaintiffs develop a strategy to manage costs effectively.
By proactively understanding litigation expenses, plaintiffs can take control of their legal strategy, avoid unexpected financial burdens, and pursue their claims with confidence while protecting their financial well-being.
Secure Financial Stability During Litigation
Litigation can be unpredictable, but understanding your financial options ensures you can focus on your case without unnecessary stress. Whether you need assistance covering legal costs, medical expenses, or daily living expenses while your lawsuit progresses, the right financial strategy can make all the difference.
Next Steps for Plaintiffs:
- Consult Your Attorney: Discuss the expected costs of your case and potential fee arrangements.
- Evaluate Pre-Settlement Funding: Legal funding can provide financial relief while you await a fair settlement.
- Consider Alternative Dispute Resolution (ADR) โ Mediation or arbitration can resolve disputes faster and at a lower cost than going to trial.
- Request a Fee Breakdown: Ask your attorney for a detailed estimate of expected costs so you can plan accordingly.
- Plan for Long-Term Litigation Expenses: Work with a legal finance expert to explore cost-effective solutions.
๐ Don’t let financial strain affect your legal case. Consult a legal finance expert to explore your funding options today and ensure you have the financial support needed to see your case through to a successful resolution.
How Express Legal Funding Helps Plaintiffs Manage Litigation Costs
At Express Legal Funding, we understand that lawsuits can be financially draining. Our pre-settlement funding services provide plaintiffs with risk-free cash advances to help cover essential expenses while awaiting a fair settlement. Unlike traditional lawsuit loans, our funding is non-recourse, meaning you only repay if you win your case.
By working directly with plaintiffs and attorneys, we help ease the financial burden of litigation, allowing you to focus on your case instead of worrying about legal costs.
If you’re facing financial strain during a lawsuit, apply with Express Legal Funding today to explore your options. Contact us, anytime, 24/7.
Frequently Asked Questions About Lawsuit Costs and Legal Fees
How much does it cost to file a lawsuit?
The cost to file a lawsuit varies by jurisdiction and case type, typically ranging from $50 to $500+ in court filing fees. Additional costs, such as legal motions and service of process, may apply.
What are the biggest expenses in a lawsuit?
The largest litigation costs often include attorney fees, expert witness fees, discovery costs, and court fees. Trial expenses can further increase costs, especially in complex cases.
Do all lawsuits require upfront attorney fees?
No. Many personal injury and medical malpractice attorneys work on a contingency fee basis, meaning they only get paid if the plaintiff wins the case. Other cases, such as contract disputes, typically require hourly or retainer-based fees.
Can I get financial help to cover lawsuit costs?
Yes. Pre-settlement funding offers financial relief to plaintiffs represented by contingency fee attorneys, providing cash advances while they await a settlement. Unlike traditional lawsuit loans, pre-settlement funding is non-recourse, meaning repayment is only required if the case is successful.
What factors influence the total cost of litigation?
Litigation costs depend on several factors, including case complexity, attorney fees, court expenses, expert witnesses, and whether the case settles or goes to trial. Cases that proceed to trial typically cost more due to extended legal proceedings.