Legal Definitions - litigation costs

Litigation costs refer to the various expenses incurred by parties involved in a lawsuit, beyond just the attorney's fees. These costs are necessary to pursue or defend a legal claim through the court system and can accumulate significantly throughout the legal process, from the initial filing of a complaint to the final judgment or settlement. They often include court filing fees, discovery expenses (such as deposition costs, document production, and expert witness fees), process server fees, mediation or arbitration fees, and other administrative charges.

• Example 1: Business Contract Dispute

  Two companies, "InnovateTech" and "Global Solutions," are suing each other over a breach of a software development contract. InnovateTech incurs costs for filing the lawsuit, hiring expert witnesses to analyze the disputed software code, paying for depositions of Global Solutions' employees, and covering court reporter fees for those depositions. They also pay for legal research databases and fees for a mediator to attempt a settlement.

  Explanation: These expenses, separate from what InnovateTech pays its own lawyers for their time, collectively represent the litigation costs of pursuing their claim.

• Example 2: Personal Injury Claim

  Maria is suing a negligent driver for severe injuries sustained in a car accident. Her legal team pays for medical records requests, expert witness fees for a doctor to testify about her long-term injuries, court filing fees, and the cost of serving the lawsuit papers on the defendant. They also pay for a private investigator to gather additional evidence from the accident scene.

  Explanation: All these expenditures, which are essential for building and presenting Maria's case in court, are considered litigation costs because they are direct expenses related to the legal process itself, beyond the attorney's hourly fees.

• Example 3: Contested Estate Litigation

  Following the death of a wealthy individual, two siblings, David and Sarah, are engaged in a legal battle over the validity of their parent's will. Their respective legal teams incur costs for forensic document examiners to verify signatures on different versions of the will, fees for appraisers to value the estate's assets (like real estate and art collections), and court fees for various motions filed during the probate process. They also pay for a court reporter during witness examinations.

  Explanation: The expenses for these third-party services and court-mandated processes, distinct from the hourly rates charged by their estate litigation attorneys, constitute the litigation costs of their dispute over the will.