MANAGING THE COST OF LITIGATION
For the client, managing the cost of litigation can be difficult and a source of frustration. Legal disputes are inherently challenging to plan and manage for both lawyers and clients. Neither have full control over the dispute and the process. The forum, selection of judges or arbitrators, how active the chairperson is when it comes to managing the process, the opposing party, their lawyer, and other variables play a significant role in shaping the process and, consequently, the associated costs.
Therefore, it can be challenging to align satisfactory expectations between lawyers and clients regarding the cost of litigation. For lawyers this is frustrating too; as a service provider, no lawyer enjoys conflict with their client over fees.
In addition, the cost of litigation is rising. Surveys support a rise in litigation spending for businesses. Many factors influence these trends, but, in general, processing and scheduling time at the courts are considerable factors when it comes to court-based disputes. The longer a legal dispute takes, the more expensive it usually becomes.
Also, increasing complexity, the volume of documents produced, and the involvement of experts have a big influence on rising costs. However, lawyers also contribute. Undoubtedly, there is a tendency for legal writing to be longer and more extensive. The art of carefully selecting the strongest winning arguments and focusing on them has in general been abandoned in favour of a ‘scattergun approach’.
General ways to lower costs
These challenges and trends call for both lawyers and clients to work together on securing alignment and clarity, and to managing costs. There are many ways to consider how to best manage the costs of litigation. First and foremost, avoiding litigation can have a huge impact.
Jul-Sep 2023 issue
Poul Schmith