How much does litigation cost in British Columbia?

1. Type of Claim:

The nature of your legal claim plays a crucial role in determining the overall cost. Different types of cases require distinct approaches, resources, and expertise. A claim that is more routine, does not have a lot of documents and witnesses, and is legally straightforward, will result in legal fees that are significantly less than a complex claim involving a novel or complicated legal argument.

Litigation takes many forms and this can affect the cost to take the matter to trial. An estate litigation claim has significantly different requirements and considerations than a construction dispute. Within estate litigation, a claim to vary a will is significantly different than a claim to invalidate a will because of undue influence or lack of capacity. As a result, it is impossible to provide precise fee estimates for litigation matters.

2. Novelty and Complexity:

Novel or complex cases often demand more extensive research, specialized expertise, and strategic planning. The level of complexity involved directly impacts the time and resources dedicated to your case. A more complex case will often require expert evidence, which can significantly increase the cost of pursuing the file.

3. Negotiation vs. Trial:

The stage at which your case is resolved significantly influences costs. Negotiating a settlement may involve fewer expenses compared to taking a case to trial. Our goal is to resolve your matter efficiently and cost-effectively, exploring settlement options whenever possible while maintaining a commitment to your best interests.

The following is a very rough estimate of what the costs of litigation will be. Each file is unique and will have unique challenges that will affect the actual cost of pursuing the matter to trial. You should discuss your particular circumstances with your lawyer to get a better understanding of the likely cost to pursue your matter.

1. Pre-Litigation Assessment:

Before formally initiating legal proceedings, a thorough assessment is often conducted to evaluate the merits of the case. This includes meeting with you, reviewing documents, and performing legal research. It also includes writing letters to the opposing party to try and reach an early settlement or resolution.

Estimate: 5-10 hours x your lawyer’s hourly rate = cost of pre-trial assessment.

2. Pleadings and Court Filings:

Once a decision is made to proceed with litigation your lawyer will prepare the necessary court form to start a lawsuit, which is called a pleading. In the British Columbia Supreme Court a claim is normally started by a Notice of Civil Claim or a Petition. The opposing party responds with a Response to Civil Claim or a Response to Petition. Once the plaintiff’s pleading is filed it must be served on the defendant(s), who then has time to respond with their pleading.

The cost to prepare pleadings varies greatly based on the type of claim and its factual basis. Additional costs may also be incurred if it is difficult to serve a defendant.

Estimate: 2-5 hours x your lawyer’s hourly rate = cost of pleadings.

3. Discovery Phase:

Discovery is an extensive process where parties exchange information and evidence. Costs include:

• Document Production: Compiling, reviewing, and producing relevant documents. The time document production requires varies greatly based on the number, importance, and complexity of documents.
• Examination for Discovery (a type of deposition): Preparing for and conducting an examination for discovery can be a significant expense. During an examination for discovery, the lawyer for each party has an opportunity to ask questions of the other party under oath and is a impotant part of the litigation process.

Estimate:
2 – 10 hours for document review x your lawyer’s hourly rate = cost of document production.
4 – 16 hours x your lawyer’s hourly rate = cost of prepare for examination for discovery.
8 – 16 hours x your lawyer’s hourly rate = cost of attend examination for discovery.

4. Applications and Hearings:

Various applications may be required to prepare your file for trial. Applications may be required for addressing issues serving documents, obtaining documents, case planning, etc.

Estimate: 3+ hours x your lawyer’s hourly rate = cost of applications.

5. Mediation and Negotiation:

Mediations are not required for litigation files; however, they can be an extremely effective way to negotiate a settlement. To prepare for a mediation, your lawyer will prepare a mediation brief that provides the mediator with your side of the story. Even when a mediation does not result in a settlement there is significant value in the time spent in preparing for and attending mediation. The work performed will assist in trial preparation and help the parties to understand the position of the other. Mediation will generally be booked for one full day.

Estimate:

10 – 15 hours x your lawyer’s hourly rate = legal fees for mediation.
8+ hours x mediators hourly rate /2 = cost of mediator.

6. Trial:

Trials are extremely expensive because of the amount of preparation and organization they require. For each day of trial, you should assume that your lawyer will be working at least 10 hours and will require at least as much time before the trial starts to prepare. Lawyers often work weekends during trials, further increasing the cost.

Estimate:
10+ hours x days of trial x your lawyer’s hourly rate = legal fees for trial.
10+ hours x days of trial x your lawyer’s hourly rate = legal fees for trial preparation.

The following is a calculation for a hypothetical litigation file with a 10-day trial, which is intended to demonstrate what the cost of an average file could be:

Stage	Hours
Pre-litigation	7 hours
Pleadings	3 hours
Discovery	30 hours
Applications	3 hours
Mediation	15 hours
Trial Preparation	100 hours
Trial	100 hours
Total	258 hours

Estimate = 258 hours x your lawyer’s hourly rate x 12% GST and PST = legal fees for file.

In addition, you will have to pay for disbursements and other expenses for the file, including process server costs, court filing fees, court reporter and transcript fees, mediator fees, copying costs, and transportation costs. This will add at least several thousand dollars to the cost of your file.

If your file requires an expert report this will significantly increase the cost of your file, the extent of which will be determined by the requirements of the report.

Yes, but only in part and not always. In British Columbia, the general rule is that the unsuccessful party in a legal proceeding is required to pay a portion of the successful party’s legal costs. The court has the discretion to determine the amount of costs to be awarded.

Costs are normally awarded based on a formula set out in the Supreme Court Civil Rules. The successful party can claim a certain number of points for each stage of the litigation process, which is multiplied by the appropriate scale (normally $110 per point). As an example, the costs for each day of conducting an examination for discovery is normally 8 p0ints x $110 = $880 plus tax. 

The scale of costs will usually be significantly less than your lawyer’s hourly rate and points cannot be claimed for all parts of the file. As a result, costs usually will reimburse you for less than half of what you will actually spend on your file. 

Key Strategies for Cost Reduction

1. Clear and Concise Communication:

Effective communication is the cornerstone of a successful lawyer-client relationship. Do not forget that lawyers bill by time, and multiple or unnecessarily long phone calls or emails can really add up. To streamline communication and minimize billable hours:

• Be Clear and Specific: Articulate your thoughts clearly, providing detailed information in a concise manner.
• Use Written Communication: Whenever possible, communicate through written channels to avoid misunderstandings and ensure a documented record.

2. Organizing Documents:

An organized case file is not only crucial for your lawyer but can significantly impact costs. Take the following steps to enhance document organization:

• Categorize Documents: Classify documents by type, date, and relevance.
• Digital Organization: If possible, provide electronic copies of documents to facilitate efficient data management.

3. Comprehensive Information at the Outset:

Providing your attorney with comprehensive information from the beginning can streamline the legal process. People sometimes think they are saving money by not providing all documents to their lawyer. This almost always results in additional costs and poorer outcomes in the long run.  Document production includes:

• Full Disclosure: Share all relevant details, even if you think they may be insignificant.
• Documentation: Provide any existing contracts, agreements, or relevant correspondence at the start.

4. Avoid Splitting Information:

Fragmented information can lead to confusion and increased billable hours. To optimize efficiency:

• Consolidate Information: Whenever possible, compile all relevant details into a single communication.
• Use a Centralized Platform: We can provide a secure platform for document sharing and communication to maintain continuity.

5. Clarity in Questions and Concerns:

When seeking clarification or addressing concerns, clarity is key:

• Ask Specific Questions: Formulate clear and specific questions to address your concerns precisely.
• Consolidate Queries: If you have multiple questions, address them comprehensively rather than in separate inquiries.

6. Proactive Case Analysis:

• Understand Legal Strategies: Take the time to understand the legal strategies being employed in your case. This can empower you to anticipate potential developments and provide more targeted information to your lawyer.

• Participate in Case Analysis: Engage in discussions about case strategy with your lawyer. Your insights into the practical aspects of the matter can be invaluable in shaping a cost-effective legal approach.

7. Timely Responses:

• Promptly Respond to Requests: Timely responses to your lawyer’s requests for information or action can prevent unnecessary delays and additional billable hours. Keep communication lines open to ensure a smooth flow of information.

8. Explore Alternative Dispute Resolution (ADR):

• Consider Mediation or Arbitration: Depending on the nature of the dispute, explore alternative dispute resolution methods like mediation. These processes often offer a quicker and less costly resolution compared to a full-blown trial.

9. Utilize Calculations and Spreadsheets:

• Financial Transparency: If your case involves financial aspects, provide calculations and spreadsheets detailing relevant figures. This transparency not only aids in accuracy but also allows for a more efficient financial analysis by your legal team.

• Present Data Clearly: When presenting numerical data, use clear and organized spreadsheets. A well-structured financial presentation can save time in interpretation, reducing the need for extensive clarification and analysis by your lawyer.