Whether you are a person needing to start a lawsuit or potentially defending yourself in a lawsuit, Business litigation in Orange County California is not something to take lightly. Other counties should expect a similar costs, but since different counties vary, this is what one can reasonably expect to occur for business litigation in Orange County, California. There are financial costs as well as cost in terms of your time and emotional costs. These costs are so high that as much as 99% of all cases settle before going to the actual trial.  Here is a summary of what each party can expect to cost financially in the very beginning of business to business litigation.

The Financial Cost of Business Litigation in Orange County California – The Beginning of the Lawsuit

In the beginning of the lawsuit, the party starting the lawsuit who is called the “plaintiff” must pay the court just over $400 per party. The plaintiff must also pay to have each defendant served. It is common for the plaintiff to pay between $75 to $150 per person served. The fee to draft the compliant is typically between $1500 and $2500 but if the case is complex, then that costs can be significantly higher.

The costs are equally high for the defense. Each defendant must also pay the court just over $400 to file its response. If the defendant files an an “Answer”, then the defendant can expect to also pay between $1500 and $2500 but if the case is complex, then that costs can be significantly higher.

However, the Defendant has another option to file a “Demurrer” instead of filing an “Answer”. A demurrer can be filed to inform the Court and the Plaintiff that something is wrong with the complaint and can often lead to forcing the Plaintiff to re-write the Complaint. If this occurs,  the Defendant can expect to pay an additional $1500 to $2500 for the Demurrer. The plaintiff can then file a response or file a new complaint. Each time this occurs, each side should be prepared to pay the cost for the new complaint and subsequent demurrer and answer.

If the parties need the Court to argue the points of the Demurrer, each side can expect to pay the hourly rate for their attorneys to drive to court, wait for their matter to be called before the Judge, argue the hearing, drive back to their office and then draft the Order as directed by the Judge.  Each party should expect to pay the hourly rate for this hearing and its follow-up. The time for this would typically be at a minimum of 3 hours and up to 5 hours at their attorney’s hourly rate.

Despite which side “wins” this initial hearing, the defendant should still expect to file an answer and then proceed with the litigation.