How Much Does It Cost to File a Lawsuit?
Filing a lawsuit requires time, energy, and money.
So, how much does it cost to file a lawsuit anyway?
Filing a lawsuit is a serious process that requires time, energy, and money.
The cost of filing a lawsuit is just one consideration you should think about before moving forward. Most people focus on how much an attorney will cost, but there’s more to consider. You should also consider the cost of not filing a lawsuit – can you afford to ignore the problem?
With that said, let’s take a look at some of the other costs involved in filing a lawsuit.
How Much Does It Cost to File a Lawsuit?
There are court costs involved, attorney fees, and miscellaneous costs, and even if you win your case, the costs will significantly reduce the net amount you realize in the end.
The overall cost depends on several factors. The subject matter and complexity of the contract and case is one factor. How clear-cut the breach of contract or other illegal activity is, and the weight of the evidence, also contribute to the time needed to prove your case (and to the cost).
If the situation and amount of money are appropriate for small claims court, you may be able to defend yourself. If you need an attorney for a more significant case, your costs will go up significantly as well. Lawyers work differently and they have their own rates and finding the right one for you can make a big difference in the cost.
But keep in mind, more experienced attorneys may cost more, but there is a reason for that. They also provide you with a higher probability of winning your case.
Costs will go up the longer the case continues. Court costs for small claims court can be as small as $100 or less. Civil court claims can go to thousands or hundreds of thousands of dollars.
Court Costs
In Los Angeles Superior Court, there are standard fees that are typically associated with a lawsuit. Although these fees are going up all the time due to inflation, etc., the following costs will give you some idea of what you will need when filing in California.
It is not a complete list (you can find that at LASC civil fee schedule), but it is enough to get you started.
Complaint/Filing Fee
In California, filing a small claim for $1,500 or less will cost $30. But the costs go up for higher claims. In limited civil cases, you pay $370 for a complaint of amounts over $10,000 and up to $25,000. There are different charges depending on the complaint. When you first appear in court, you pay this as your “first appearance fee.”
Motion Filing Fee
You pay $60 to file your motion, with the court. If you need a third-party attorney service to file your motion, or fax-file it, that can cost another $50-100 depending on how fast you want the motion filed. And there can be many motions filed in a lawsuit including motion for a summary judgement, which costs $500.
Depositions
If you want to formally depose a witness, you have to serve a deposition notice/subpoena on that witness. You also have to schedule a time convenient for the witness, the defendant,and his or her attorney. And you have to reserve a court reporter who can officially transcribe the proceedings.
Court reporters can charge $1,000-$2,000 per day. If you need to have the proceedings videotaped, you can do it yourself or hire a certified videographer at another $1,000 or more per day. And if you need an interpreter for the witness, that will be even more.
Copies of Documents
You may need to get copies of documents from the defendant to help prove your case. Most of the time, that means you will need to hire a bonded copy shop to bring their copiers/scanners to wherever the documents are located and make copies for you.
These shops can charge $200 or more for setup and another 10 to 40 cents a page.
Expert Witnesses
Your lawsuit may require bringing in experts to testify for you. They will have knowledge of topics outside the realm of the layperson. These experts can represent almost any area of special knowledge. They can be psychiatrists, surgeons, physicians, engineers, economists, social workers, accident reconstructionists, engineers, and more. Experts like these can charge $200 to $400or more per hour.
Appeals
An appeal may be necessary for your case, and if so, the filing fee can be about $700. If you need a court clerk to prepare a record for the appeal, that can cost hundreds of dollars more. And if you need a written transcript of the court proceedings, this can cost as much as $1,000.
Attorney Fees
The biggest cost of a lawsuit is generally the attorney’s fees. Under the American rule, each side in a lawsuit is responsible for paying for its own attorney. There are some exceptions, like antidiscrimination lawsuits or cases where the sides agree differently. It usually depends on your state. And the cost depends on the type of fee arrangement you have with your attorney.
Contingency Agreements
Many lawsuits are funded by your attorney, in a “contingency” fee arrangements where the attorney pays some, most, or all of the costs and fees associated with the lawsuit. The attorney essentially invests his or her time without charging you up front.
In return, and if you win, your attorney takes a percentage of the recovery from the lawsuit. If you lose, the attorney gets nothing. So, your lawyer is taking on the financial risk of your lawsuit.
A common percentage asked by attorneys is 30-40 percent. You can try to negotiate a better agreement, but certified lawyers are your best chance of winning your case and they will no doubt resist any attempt to reduce the fee. Many people recognize the cost but accept it because it is an incentive for the attorney to win your case.
Make sure you read the contract, however, to find out if you will be asked to pay for court costs at the conclusion of your trial whether you win or lose.
Hourly Rees and Retainer Agreement
Hourly fees are the most common way that attorneys charge. This cost can usually be hundreds of dollars per hour. All attorney time is charged including phone calls, emails, working on and submitting documents on your behalf, time in court, time with witnesses, etc.
An attorney’s hourly rate depends on his or her experience, operating expenses, the location of the practice, and the experience and status of the law firm. Smaller firms or less experienced attorneys may charge $100-$500 per hour, while larger, more experienced, and more powerful firms may charge as much as $1500 per hour.
Your attorney will send you an itemized list detailing how much time he or she spent on your case, and you should review it carefully. You can expect that more experienced attorneys will traditionally cost you more than less experienced ones.
Your attorney might prefer to establish a retainer arrangement with you. This can mean different things, depending on the wording of the agreement. It can mean a down payment toward future expenses. Or it can mean an agreement for regular payments over time depending on when legal assistance is needed.
The second example is usually the choice of small businesses that need legal assistance quite often because they run into many legal obstacles or need legal advice from time to time.
In some cases, it is possible that you can find a “pro bono” lawyer who will represent you free of charge. And if you win your case, the court may award you the costs by charging the other side for them. But going into your lawsuit, you need to consider all the cost factors you will face regardless of the outcome.
Conclusion
So, how much does it cost to file a lawsuit?
It really depends on the legal matter at hand, the time it takes to file your claim, whether or not you go to court, and the various fees involved.
If you would like to speak with an attorney about your legal matter, contact the SFVBA Attorney Referral Service to learn more.
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