The cost of litigation is always increasing. Between 2000 and 2008, the average cost of litigation for corporations increased from $66 million to $115 million, an average yearly increase of nine percent. And it’s still climbing today. Shockingly, this increase in litigation expenses isn’t being traced back to the cost of outside legal fees. Instead, it’s our country’s legal system that is driving up the cost of litigation.
In this article, a Houston construction lawyer from Cotney Law will discuss how much major companies in the United States are paying for litigation. If you are in need of construction-related litigation services, our Houston construction lawyers can provide you with aggressive, industry-leading defense to protect your bottom line and help you continue to grow your business.
Litigation Costs Are Higher in the United States
Compared to other major legal systems outside of the United States, our country places an increased financial burden on companies and corporations dealing with litigation. Litigation costs can cost four to nine times more in the United States, which takes a toll on companies. One solution is to invest in a subscription plan that reduces the cost of partnering with a Houston construction lawyer. Another solution is to resolve disputes using mediation or arbitration in lieu of litigation.
Discovery Is Inefficient and Expensive
In the United States, the discovery process turns up roughly one important document for every thousand that are reviewed. This means vast amounts of time and resources are being wasted on a discovery process that is clearly inefficient. Of course, no stone should be left unturned when an attorney is fighting on behalf of their client, but there must be a system in place to manage and streamline this process. Discovery costs for large companies can range from $500,000 to over $2 million on average, but these costs can stretch far beyond that in some cases.
Litigation Costs Companies Billions of Dollars Annually
Companies across the United States are forced to drop billions of dollars collectively each year to stay in business. Litigation costs can cut into profits and stifle business growth. Some attribute litigation to the “cost of doing business,” but if you plan ahead and invest in prevention, you may be able to reduce the amount of time and money you spend on litigation. Our Houston construction lawyers provide contractors with a wide range of legal services to help prevent and manage disputes. In addition to top-notch litigation services, we also offer contract review, bid protest, alternative dispute resolution (ADR), and more.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.