When a business mistreats someone, it might be time for the mistreated party to sue. A business lawsuit can right many wrongs and bring closure in a dispute, but it can also come with a hefty check for the plaintiff.
When considering legal action against a business, the natural question is, How much does it cost to sue a company in Texas? A general answer to this question is that a business lawsuit may cost thousands. A more accurate answer to this question is that the cost of a business lawsuit depends on the specific facts of each case.
Someone contemplating business litigation and its associated costs can benefit greatly from speaking to an experienced business attorney. Our legal team at Massingill has several decades of combined experience, and we can make legal matters simple and positive for the people of Texas.
The Cost of Filing a Business Lawsuit
Once a plaintiff is ready to open their case, they need to file a complaint in court, pay the accompanying fee, and have the business defendant served with their complaint. In Texas, plaintiffs have two main court options for lawsuits: state court or federal court.
Plaintiffs file many Texas civil lawsuits in state court, but they might need to file in federal court if the business they are suing is located outside the state or if the lawsuit is based on federal law. State and federal lawsuits come with different filing costs, as outlined below.
Filing Fees in State Court
In Texas state courts, the cost of filing a business lawsuit is typically more than $200. Additional fees ranging from $35 to $75 may apply to filing subsequent motions in the lawsuit or requesting additional action in the case. For instance, a plaintiff might have to pay $35 to $75 to initiate a contempt action against a business defendant when they refuse to cooperate with court orders.
Filing Fees in Federal Court
Filing a lawsuit in federal court may cost considerably more than filing in state court. For example, filing a lawsuit in the U.S. Court for the Eastern District of Texas normally costs more than $400. A plaintiff might also have to pay additional money to obtain copies of crucial paperwork from the courthouse.
Service of Process: Delivering the Complaint
Once the plaintiff files their lawsuit against a company, they must officially serve the company with the legal paperwork. This step, known as service of process, helps ensure that the company has proper notice of the lawsuit. This step may also come with a price tag.
Service fees vary depending on the method of service used. Hiring a sheriff or constable to serve papers in Texas often costs around $75, while using a private process server may run slightly higher, around $100 or more.
Other Texas Business Litigation Costs
Filing fees for complaints and fees for having a defendant served are standard Texas business litigation costs. Still, a plaintiff may have additional money to pay the court because of their specific litigation needs. Many of these extra costs involve paying for witness testimony and evidence.
Compensating Witness Testimony
Witnesses often play a crucial role in litigation, whether they are experts providing technical insights or individuals with firsthand knowledge of a dispute.
Standard witness fees
Under Texas law, non-expert witnesses typically receive a fee of around $10 per day. While this may seem minor, it may create substantial costs in protracted litigation.
Expert witness fees
Expert witnesses, on the other hand, are often a significant expense right out of the gate. They range from forensic accountants to industry specialists or healthcare providers and may charge several hundred dollars per hour for consultations, reports, and testimony. Cases involving complicated technical details may hinge on expert opinions, making these fees a necessary investment.
Subpoenaing a Witness
Not only might a plaintiff have to pay a daily or hourly rate for a witness to testify on their behalf, but they might have to send the witness legal paperwork from the court to help ensure that the witness shows up in court or at a deposition. This legal paperwork is called a subpoena and may cost around $75 for each witness.
The Cost of Hiring an Attorney
Attorney fees may be a critical part of legal fees for suing a company. Attorneys charge for their services in various ways, and understanding these options is vital.
Flat Fees
Some attorneys charge a flat fee for handling straightforward cases, such as smaller claims or limited contract disputes. Depending on the case’s complexity, these fees may cost several thousands of dollars.
Hourly Fees
Hourly billing is common for litigation. An attorney may charge several hundred dollars per hour. Rates can be higher or lower, depending on a lawyer’s experience level and the time they have available to commit to a new case. Since lawsuits can span many months, hourly fees may multiply quickly and ultimately cost a plaintiff thousands.
Contingency Fees
Some attorneys work on a contingency fee basis for cases involving financial damages, such as personal injury or breach of contract cases. Under this arrangement, the lawyer takes a percentage of the settlement or judgment if the case is successful. This approach may minimize a plaintiff’s upfront costs.
Negotiation Is Key
Whatever fee structure an attorney uses, a plaintiff has the option to negotiate with them. Depending on a plaintiff’s circumstances, an attorney may agree to switch their fee structure from hourly to flat or contingency or may agree to reduce their standard fee. Massingill strives to make every client experience affordable and the most positive that it can be.
Contact our Texas business attorneys for a free consultation
Contact Massingill Today
The prospect of suing a company might feel overwhelming, but each plaintiff has options and tools to navigate the process effectively. A good attorney is one of the best tools a Texas plaintiff can have for their business lawsuit.
Massingill is a premier law firm in Texas ready to take on any business issue in court or at the negotiation table. We are highly experienced and top-rated by our clients. We help our clients obtain the relief they deserve while holding businesses accountable for wrongful actions.
No case is too simple or too complex. Please call us today or contact us online to schedule a consultation.
Where You Can Find Our Austin Offices
Where You Can Find Our Abilene Office
Resource List
- Denton County Service Fees, link
- Harris County Civil Process Fees, link
- Texas Civil Practice and Remedies Code, section 22.001, link
Joshua Massingill
Joshua Massingill is an attorney practicing in Austin, Texas. He serves on the Texas State Bar’s Law Practice Management Committee, the Leander Educational Excellence Foundation (LEEF) Board of Directors, and the Success-Werx Board of Advisors. He mentors young entrepreneurs in Leander ISD’s INCubatorEDU program and is active in his church.
Rate this Post
Loading...