The Real Costs of Litigation

by Rena McDonald

            It may seem odd to have an attorney talk about the benefits of not litigating a case, but as advocates for our clients we want to be sure that they receive the resolution that they are looking for without having to pay the high costs of litigation. Unfortunately, in our society, litigation is a part of a business owner’s life. Over half of all businesses have had a significant legal issue within the last two years. Every day I listen to people contemplating legal action against someone to resolve their issue. Litigation should be a last resort and several factors should be evaluated before you commit to filing a law suit.

            Is it worth it? First you must weigh the financial and emotional strain the litigation will place on you and your business compared to the possible results. Even if someone has “wronged you”, depending on the court that you are required to file in and the complexity of your matter, litigation can cost upwards of tens of thousands of dollars and there is no guarantee that the court will reimburse you for your legal fees and expenses. Litigation can also take years to resolve and does not ensure immediate resolution of your issues. 

            What will I gain? It is possible to be right and win a case, but never be compensated. The opposing party might be ‘judgment proof.’ They could file for bankruptcy or they might not have any assets to collect. The law prevents you from collecting certain assets such as income from social security or unemployment. Even if they are not judgment proof, there is a statutory limit on the percentage of funds you are allowed to collect from bank accounts and income. It may take years of time and energy to collect what you have been awarded. An experienced attorney can review the information and give their opinion as to the collectability of your case.

Some licensed professionals have their own regulatory systems which may be a perfect place to air your complaint. For example, let’s say you pay for an installation from a licensed contractor. If you are unhappy with their work, you can contact the Nevada State Contractor’s Board and an investigator will review the situation; if it appears that there has been misconduct the investigator will then set a hearing. If the contractor is licensed the Contractor’s Board may be able to make you whole thus Civil litigation would not be necessary unless you were unsatisfied with the results of that action.

Depending on your situation there may be other avenues for recovery that you can take to avoid litigation. Finding ways to resolve your issues without litigation can be easier, cheaper, and less stressful for you. Of course there are situations where litigation is unavoidable; in those situations hiring an attorney is imperative to protect your rights.

Civil litigation covers a wide range of legal disputes between two or more parties that seek money damages or specific performance rather than criminal sanctions. At McDonald Law Group we resolve matters including business disputes to breach of contracts, real estate, family law issues, and much more. Our attorneys have years of experience, using alternative methods to achieve resolutions without litigation.

            McDonald Law Group has spent the last 10 years providing litigation services to its’ valued clients. Let us resolve your civil disputes in a cost effective manner. This article is for informational purposes only and shall not be construed as legal advice or as creating an attorney client relationship. If you would like to discuss your options please feel free to contact us at (702) 488-4962 to set up a free consultation today.