litigation costs
Definition
Litigation costs are all the expenses that pile up when a legal dispute goes to court, including attorney fees, court filing fees, expert witness fees, and costs for gathering evidence. These expenses can add up surprisingly fast and often end up costing more than the original dispute was worth.
Example
If a customer sues your business over a $5,000 contract dispute, your litigation costs alone could easily reach $20,000 or more by the time you pay your lawyer, hire an expert, and cover all the court fees.
Watch Out
Many contracts include a clause that makes the losing party pay the winner's litigation costs, so always read that fine print before you sign.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.