Civil Litigation Cost Estimator

Understanding Civil Litigation Economics

Civil litigation is one of the largest financial decisions individuals and small businesses face, yet most people have no framework for understanding costs. A typical civil case can cost $10,000-$100,000+ by the time it concludes, with some complex cases reaching $500,000 or more. People often enter litigation believing their case is "simple" or "clear-cut," only to discover months later that attorney fees, discovery costs, and expert witnesses have consumed their potential recovery or created unexpected liabilities.

The economics of litigation are counterintuitive: more favorable cases don't necessarily cost less because they require extensive investigation and expert testimony to prove their merit. Strategic decisions about settlement vs. trial dramatically affect final costs. This calculator helps prospective litigants understand financial exposure and make informed decisions before committing to expensive legal proceedings.

Components of Litigation Costs

Total litigation expense includes multiple components:

Attorney Fee Structures

Three primary fee models exist in civil litigation:

• Hourly billing: $150-400/hour for associates; $300-800/hour for experienced attorneys. Client pays regardless of outcome. Predictable but can escalate if discovery is extensive or case drags.
• Contingency fees: Attorney takes 25-40% of recovery (typically 33%). Client pays nothing unless they win. Creates incentive alignment but limits attorney's resources on marginal cases.
• Hybrid: Hourly rate plus percentage of recovery (e.g., $150/hour + 20% of recovery). Balances risk between client and attorney.

Discovery Costs and Expert Witnesses

Discovery—the process of exchanging evidence and documents—often represents the largest cost component. Modern civil litigation involves reviewing thousands of emails, documents, and data. Costs include:

• Document review: $5,000-$50,000+ depending on document volume
• Depositions: $2,000-$5,000 per deposition (court reporter, transcript)
• Expert witnesses: $3,000-$15,000+ per expert (investigation, reports, testimony)
• Forensic analysis: $5,000-$100,000+ for complex cases

A typical moderate complexity case with 2-3 experts and substantial document discovery runs $10,000-$30,000 in these costs alone.

Worked Example: Personal Injury Auto Accident Lawsuit

Scenario: Car accident lawsuit, $75,000 claim, moderate complexity

Assumptions:

• Plaintiff hired attorney on hourly basis at $250/hour
• Expected case duration: 18 months to settlement
• Estimated attorney hours: 120 (preparation, depositions, settlement negotiation)
• Expert witnesses: 1 medical expert ($5,000) + 1 accident reconstruction ($4,000)
• Settlement probability: 75%
• Trial probability: 15%

Cost breakdown:

• Attorney fees (120 hours × $250): $30,000
• Medical expert: $5,000
• Accident reconstruction expert: $4,000
• Discovery & document review: $2,500
• Court filings & costs: $1,200
• Expected trial costs (15% probability): $15,000 × 0.15 = $2,250
• Total estimated cost: $44,950

Net recovery analysis:

• Claim value: $75,000
• Net after costs: $75,000 - $44,950 = $30,050 (40% of claim consumed by litigation)

Case Type and Cost Variation

Contingency vs. Hourly Fee Economics

The choice between fee structures dramatically affects financial exposure and case strategy:

Hourly fee ($250/hour, 150 hours):

• Total attorney cost: $37,500
• Client pays regardless of outcome
• Attorney incentivized to work thoroughly and investigate fully
• Client bears all financial risk

Contingency fee (33%):

• If $75,000 recovery: Attorney gets $24,750, client gets $50,250
• If $50,000 recovery: Attorney gets $16,500, client gets $33,500
• If no recovery: Client gets $0, attorney gets $0 (absorbs all costs)
• Attorney selective about cases taken; only pursues cases with reasonable recovery probability

Contingency is preferable for plaintiffs with uncertain outcomes or limited funds, but places less attorney effort on marginal cases. Hourly is preferred for defendants and strong cases with clear liability.

Settlement Economics

Most civil cases settle before trial, saving both parties significant costs. Settlement negotiations typically occur in three phases:

• Pre-discovery: Settlement unlikely; attorneys still assessing case merit (litigation cost savings: minimal)
• Post-discovery: Both sides understand case strengths; settlement most likely (litigation cost savings: 30-50%)
• Pre-trial/trial: Parties have invested heavily; settlement decisions factor in trial costs vs. likely outcome (savings variable)

A case that costs $30,000 to settle may cost $50,000+ if it proceeds to trial, creating incentive for settlement even if parties disagree on valuation.

Appeal Costs and Post-Trial Litigation

Appeals can double or triple total litigation costs:

• Appeal attorney fees: $15,000-$50,000+ depending on complexity
• Appellate transcript & briefing: $5,000-$20,000
• Success probability: 10-20% for most appellants (unfavorable for appeal economics)

Only pursue appeals if specific legal errors occurred (not factual disagreements) and recovery potential justifies additional costs.

Limitations and Assumptions

This calculator uses national averages; actual costs vary 50-100% by geographic location, attorney experience, and court jurisdiction. Complex federal litigation costs dramatically more than state civil cases. Expert witness costs vary wildly ($500/hour consulting to $10,000+ testimony for specialized experts). The calculator assumes standard litigation timeline; expedited litigation or prolonged discovery can increase costs significantly. Actual attorney hours depend heavily on case management efficiency, opponent tactics (frivolous motions increase costs), and court delays. Some cases require appeals, investigations, or specialized expertise not captured in base estimates.

Summary

Civil litigation is financially demanding, with total costs typically ranging 30-60% of potential recovery. Understanding upfront cost exposure, fee structures, and settlement probability helps litigants make informed decisions about pursuing or settling cases. Many cases that appear "clear-cut" become expensive when extensive discovery or expert testimony becomes necessary. Strategic decisions about settlement vs. trial can reduce total costs by thousands of dollars while often achieving comparable outcomes.