A lawsuit is usually a lengthy process, and it is expensive, there is no way around that fact.
Litigation is one way to deal with a competitor, a business partner or anyone else you believe is guilty of wrongdoing. But are you aware of the costs involved in taking someone to court?
Common business disputes
The most common type of business dispute concerns partnerships. Issues usually arise over financial problems, a change in leadership or the direction in which the company is going. Breach of contract also happens frequently. Contracts are legally binding, but one party’s failure to act or to deliberately violate the terms of the contract can lead another party to consider a lawsuit. On the other hand, resolving disputes between your business and another must proceed carefully if you wish to salvage the relationship.
In addition to attorney fees, you must prepare for other costs. To begin with, you must file documents with the court, which can cost up to $500. Once you complete this process, you will have to serve documents to the other party. You will likely use a process server, which will run another $100 or more. Next comes the discovery aspect of your suit, in which you and your attorney request information, gather evidence and possibly talk to witnesses. The deposition of one witness alone might cost several hundred dollars. Finally, keep in mind that extra expenses will invariably crop up. All things considered, a simple lawsuit may cost in the neighborhood of $10,000 or so.
Unless you have a solid case to present, you may want to avoid going before a judge. There are other alternatives, and you stand to save a good deal of money, time and stress by settling the dispute outside of court.