EXPLAINED: LITIGATION COSTS IN ACCIDENT INJURY CASES

Accident Victims hire injury lawyers on a contingency fee, typically.  As part of the attorney-client contract, something called “litigation costs” is mentioned.  The client pays for this amount at the conclusion of their case, and should see the litigation costs itemized on their final paper breakdown.

This article explains:

1. What litigation costs are,
2. Why litigation costs are required,
3. What common costs amount to, and
4. Why litigation costs are necessity.

Rules 77.01 and 77.05 of the Supreme Court of Missouri dictate who pays for attorney’s fees.  Typically, it is the party that loses at trial.  These rules have been codified in Mo. Rev. Stat. § 514.070 and 514.260 of the Revised Statutes of Missouri.

Courts have also interpreted the litigation cost rule.  For example, the Western District of Missouri in the case Baker v. Whitaker, 887 S.W.2d 664 (Mo.App. W.D. 1994) ruled that expenses should be deducted before the lawyer’s share is allocated.

What does this mean to you?  This means when you are signing the litigation contingency fee agreement, it should contain a sentence indicating that you, (the client) will pay the litigation costs.

In practice, this means attorney’s fees are deducted first.  Then, the litigation costs are paid for.  Then, the remaining amount is paid to the client (you).  This is the presumption.  However, contingency fees can be negotiated and worded into other arrangements.

WHAT ARE INCLUDED IN LITIGATION COSTS?

There are several categories of costs that are included as litigation expenses.  Rules 57.10 & 57.03 (g) are examples of civil procedure rules that govern these costs.  They include:

1. Expert Fees
2. Deposition and Court Reporter Costs
3. Filing fees from the Court
4. Witness fees (requiring witnesses to show)
5. Copying Costs (making duplicate documents)
6. Exhibits
7. Miscellaneous expenses

While some litigation costs are inexpensive (filing fees) others can be extremely expensive (experts).

LITIGATION COSTS ARE ON THE RISE

WHAT ARE COMMON LITIGATION COST AMOUNTS?

Small cases should expect hundreds of dollars before litigation in litigation expenses.  After litigation begins, it becomes thousands of dollars.  If multiple experts are required and trials included, litigation costs can exceed $100,000 for a case.

I encourage you to ask your accident attorney how they break down litigation costs, what you will pay for, what the attorney will pay for, and the amounts the lawyer expects.  Any competent attorney should be able to discuss litigation costs in detail with you.  Do not expect much leeway regarding changing who will pay for litigation costs, what they will be and the amount.  This is often outside of the control of the attorney.

Author:  Matt Hamilton

• Trial Lawyer
• Juris Doctor