Litigation Economics 101: Risk-Adjusted Return On Litigation

From the outset of a law suit, a key advisory role we fulfill as litigation counsel requires us to equip our clients with the analytical tools necessary to evaluate their decision to commence, settle or continue litigating.

The significance of analyzing the economic risks inherent in litigation cannot be overstated. Each case presents a unique amalgamation of context, facts, and law, making it essential to delve into the specifics when assessing the potential outcomes for our clients. Vague descriptors such as "strong case" or "uphill battle" provide little clarity for commercial businesses facing decisionmaking uncertainty.

Civil litigation's formal discovery process (the exchange of documents and evidence) serves to narrow down and spotlight the core issues and facts in contention. The complexity of this process, along with factors like the cooperation of opposing parties and counsel, greatly influences its challenges and costs.