As any lawyer will tell you, predicting the cost of a lawsuit is very difficult because parties don’t always cooperate, there are disagreement on substantive legal issues, and people are not always that predictable. That being said, we do provide estimates for clients for the various phases of each lawsuit. This gives clients some clue as to their legal fee liability and allows them to plan better. I based these specific estimates off of some of my more typical breach of contract claims. We also offer some unique billing solutions for small businesses in the midst of a legal battle. The following estimates assume an average $350/hour bill rate for a standard breach of contract matter.
Commencing a Lawsuit
| Category/ Description | Hrs. | Total | ||
| Draft Complaint (review client documents, draft summons and complaint, conduct legal research on claims, discussions with client regarding facts) | 3 | $ 1,050.00 | ||
| Filing Fees | n/a | $ 210.00 | ||
| RJI Filing Fee | n/a | $ 95.00 | ||
| Process Server Fees per Defendant | n/a | $ 125.00 | ||
As you can see from the above, commencing a typical breach of contract claim is about $1,500, assuming just one Defendant. Multiple Defendants might complicate the facts adding a little more time to draft the Complaint, and It will add to the process server fees.
Discovery
| Category/Description | Hrs. | Total | ||
| Discovery (drafting discovery demands, responding to discovery demands, review documents, etc.) | 5 | $ 1,750.00 | ||
| Discovery Motions and Hearings | 5 | $ 1,750.00 | ||
| Prepare for, attend, conduct depositions of witnesses | 10 | $ 3,500.00 | ||
| Court Reporter Fees (based on $1,500/day estimate) | n/a | $ 1,500.00 | ||
Discovery is where costs begin to accrue. These estimates can change based on the length of a deposition, the number of witnesses, and the extent of documentation that needs to be reviewed. In this example, including the costs of a court reporter, and a full day of depositions, the fees can be approximately $8,500.
Motion Practice
For some basic information on motions click HERE.
| Activity | Attorney | TOTAL | |
| Category/Description | Hours | Sub Total |
$5,600.00
|
| A. Prep Affidavits and Exhibits and Efile/Serve Motion Papers | 2 | $800.00 | |
| B. Prep Memorandum of Law, Attorney Affirmation, Legal Research | 8 | $3,200.00 | |
| C. Review/Analyze Opposition | 2 | $800.00 | |
| D. Prep Reply Memorandum or Affirmation | 2 | $800.00 | |
| E. Oral Argument (not always required) | 4 | $1600 | |
Motions can be and often are complex. A dispositive motion such as a motion for summary judgment or a motion to dismiss is 9 out of 10 times a very complicated task. It requires extensive analysis and legal research. It’s where all that lawyer training really comes into play. The costs for a complex motion can range from the $5,600 quoted above, to even $10,000 or $15,000 in some more specialized cases.
A discovery motion however, is in my view an extremely simple motion often made overly complicated by attorneys as a means of over billing their clients. If you’re spending more than $1,500 on a simple discovery motion, you’re spending too much. I’m sure there are plenty of attorneys out there that would disagree with that statement but I’m willing to bet that most of those attorneys just LOVE to talk and write at length and bill their clients for that inefficient use of time.
Miscellaneous Billing
| Category | Hrs. | Total | ||
| Court Ordered Conferences | 2 | $ 700.00 | ||
| Settlement Agreements, Negotiations etc. | 2 | $ 700.00 | ||
| Miscellaneous Filings (ex: requests and notices) | 1 | $ 350.00 | ||
Court ordered conferences such as a Preliminary Conference, Compliance Conference, or Settlement Conference, are an inevitable part of any lawsuit. You can plan for at least 2 – 4 conferences per year.
Settlement agreements can be real simple, such as in a breach of contract situation, or they can be complex if the parties are envisioning a more creative solution. Creativity often translates into additional expense. That’s just a fact of any litigation.
Communications
Communications in a lawsuit deserves its own separate discussion. Communications can be a real sore spot for clients because a client will look at their invoice and see a list of .1’s on their invoices adding up to hundreds of dollars for the billing period and thousands of dollars over the course of the litigation. The fact is, attorneys bill for their time and much of that time is spent talking to clients, other attorneys, judges, and witnesses. Some attorneys will bill for every single second of their time, others are more lenient and flexible.
We offer flexible solutions discussed below. The point is to keep in mind that communications can and do vary and are unavoidable. For a complex lawsuit you could be spending tens of thousands of dollars dealing with communications. For more straight forward breach of contract claims communications are likely far more manageable. How do we address the costs of communication? Well, here are some simple options to consider:
- Flat fee monthly billing for attorney-client communications.
- Reduced hourly fee for attorney-client communications.
- No billing for attorney-client conversations less than 10 minutes.
- A policy of minimal attorney-court communications (i.e. we don’t litigate through letter writing as it’s a waste of time for the Court and an utter waste of money for the client 9 out of 10 times.)
Please note, this article is for educational and information purposes only. It’s important you contact a lawyer to discuss your specific case and potential costs.
