Budgeting Litigation

Few companies—especially those surprised by litigation—have a litigation budget. They don’t realize how expensive the judicial system can be. Company execs believe that litigation is but an annoyance until their defender passes a proposed budget for a quarter million dollars across the conference table at the initial consultation.

Even a sophisticated client has never taken CivPro1 so much of what you say is gibberish. It’s like a physician presenting treatment alternatives where you haven’t even read the Wikipedia page. Maybe there’s a Reddit comment that applies to your situation, but probably not.

It is extremely difficult to budget litigation because you’re playing just one side of the board. The response to a complaint turns out to be, not an answer, but a motion attacking service, followed by a motion to dismiss. This is followed by a motion for sanctions. Only much later do you get the defendant’s answer. Then you’re served with 500 requests to admit. Not 25, nor 50 nor even one hundred. 500. Get in line to park at the courthouse.

Include a provision so that “extra costs extra.” Otherwise, your carefully planned budget will fly out the window at the first encounter with your opponent. As von Moltke noted, “no plan survives first contact with the enemy.”