Key Takeaways

  • The total cost of a breach of contract lawsuit includes filing fees, motion fees, discovery costs, expert witness fees, and potential appeal costs.
  • Attorney’s fees may be recoverable if the contract includes a fee-shifting clause or if allowed under state statutes.
  • Damages in a breach of contract case can include compensatory damages, consequential damages, liquidated damages, and sometimes punitive damages.
  • The value of a breach of contract lawsuit depends heavily on the type of damages involved and the specific terms of the contract.
  • Factors such as the complexity of the dispute, jurisdiction, and the length of litigation can significantly impact how much a breach of contract lawsuit costs.

Breach of contract attorney's fees can sometimes be recovered in the following situations:

  • A contract requires that the losing party pay for the other party's attorney's fees.
  • A state statute automatically awards the winning party coverage of his or her attorney's fees.

Lawsuit Costs

Although these costs are subject to change due to inflation, the following rates usually follow a lawsuit in Los Angeles, California:

  • Complaint filing fee of $320.
  • Motion filing fee of $40.
  • Depositions fee of $1,000 to $2,000 per day.
  • Copying fees of $200 or more.
  • Expert witness fee of $200 to $400 per hour.
  • Appeal filing fee of $700.
  • Potential fees upon losing a case.

The fee to file a complaint is paid to the court at the start of the lawsuit. The person being sued must also pay this fee upon his or her initial appearance in court.

When filing a motion, individuals often have to hire a third-party lawyer to file a motion with the courthouse, which costs an additional $50 to $100 per motion. There is often more than one motion filed per lawsuit.

It is possible to save money on depositions by interviewing the witnesses over a cup of coffee or lunch; however, the individual must get a written declaration or affidavit from the witness at that time. While an informal process can be done, it is most common to officially depose the witness by issuing a subpoena and setting up a time to meet with the witness as well as the defendant and his or her attorney. A court reporter must also be reserved.

The fees for a deposition add up because there are many additional costs that may be needed. For example, the court reporter costs roughly $1,000 or more per day. Furthermore, there is a chance that the individual may need to hire a videographer and/or an interpreter at an additional cost.

If the defendant has documents that the plaintiff needs, a bonded copy shop may need to be hired to set up copiers on site. The setup fee is often around $200 with an additional 10 to 40 cents charged per copy.

It is not uncommon for a lawsuit to need an expert to discuss topics that are not commonly understood by the average person. The cost for these testimonies can be anywhere from $200 to $400 per hour. The following are examples of an expert witness:

  • Engineers.
  • Economists.
  • Human resource expert.
  • Psychiatrists.
  • Accident reconstructionist.

When filing an appeal, the person filing may need to request a record for appeal from the court clerk, which can cost another couple hundred dollars. Furthermore, in some cases, a written transcript of a previous hearing may be needed, which can cost up to $1,000.

Often, an individual will be responsible for his or her opponent's fees on top of their own costs. In some cases, a court can require him or her to pay for his or her opponent's lawyers as well. Occasionally, the plaintiff's lawyer will cover some or all of the costs of the lawsuit; however, if the plaintiff wins, the lawyer acquires a percentage of the lawsuit's recovery. If a case is minor or petty, it is not likely that a lawyer will be willing to spend his or her resources on the lawsuit.

Types of Damages in Breach of Contract Lawsuits

Understanding the types of damages that can be awarded in a breach of contract lawsuit is key to estimating its value:

  • Compensatory Damages: The most common form of damages, compensating the non-breaching party for actual losses.
  • Consequential Damages: Also known as special damages, these cover losses indirectly caused by the breach, like lost profits.
  • Liquidated Damages: Pre-agreed sums included in the contract to be paid in the event of a breach. Courts enforce these when they are reasonable estimates of actual loss.
  • Nominal Damages: Token sums awarded when a breach occurred, but no substantial loss was proven.
  • Punitive Damages: Rare in contract cases, but may be awarded if the breach also involves fraud or egregious misconduct.

Each type of damage serves a different legal purpose and contributes to answering the question: how much is a breach of contract lawsuit really worth?

Factors That Affect the Cost of a Breach of Contract Lawsuit

The cost of a breach of contract lawsuit varies significantly depending on several key factors:

  • Jurisdiction: Court filing fees and procedures vary by state and even by county, which can affect overall costs.
  • Complexity of the Dispute: Disputes involving technical subject matter, multiple parties, or extensive evidence will increase legal expenses.
  • Amount in Controversy: Larger claims may require more time and resources to litigate, raising legal and court costs.
  • Duration of the Case: Lawsuits that resolve quickly through settlement are less costly than those that go to trial.
  • Discovery and Evidence: If the case requires extensive document production or multiple depositions, the expenses can escalate.
  • Use of Expert Witnesses: Bringing in technical experts (e.g., accountants, engineers) can be necessary but significantly adds to the cost.

These variables explain why the answer to “how much is a breach of contract lawsuit?” often depends on the unique circumstances of each case.

Attorney's Fees for a Breach of Contract

According to section 1717 of the California Code of Civil Procedure, the winning individual of a breach of contract lawsuit can file a motion with the court and be awarded the attorney's fees.

In the case Monster, LLC vs. Superior Court of Los Angeles County, the court stated that it is up to the jury to decide whether or not the attorney's fees should be considered damages to the winning individual in a lawsuit regarding a breach of contract.

In 2008, Monster, LLC and Noel Lee, the company's founder, established a licensing agreement with Jimmy Lovine and Dr. Dre for the manufacturing and sale of the headphones, Beats By Dre. Later on, Lovine and Dre created Beats Electronics and established a second agreement with Monster, LLC that replaced the initial agreement. According to this new agreement, Beats Electronics had the right to end its licensing agreement with Monster, LLC if a third party purchased more than 50 percent of Beats Electronics.

How to Estimate the Value of Your Breach of Contract Case

To determine how much a breach of contract lawsuit may be worth, consider the following:

  1. Actual Financial Loss: Document all costs, lost income, or expenses directly resulting from the breach.
  2. Evidence Strength: The quality of documentation, witnesses, and proof impacts both settlement leverage and trial outcomes.
  3. Mitigation Efforts: Courts expect parties to take reasonable steps to reduce their losses. Failing to mitigate can reduce the amount recoverable.
  4. Contract Terms: Provisions related to damages, limitations of liability, or dispute resolution will impact your claim's potential.
  5. Legal Strategy: A clear litigation plan guided by an experienced attorney can clarify expectations and optimize outcomes.

Consulting an attorney early in the process can help you calculate the full scope of potential recovery.

Alternatives to Litigation: Saving Time and Money

Given the potential expenses associated with breach of contract lawsuits, many parties consider alternative dispute resolution (ADR) methods:

  • Mediation: A neutral third party facilitates negotiation to help parties settle out of court.
  • Arbitration: A more formal process where a neutral arbitrator makes a binding decision. It can be faster and cheaper than court.
  • Settlement Negotiations: Parties may negotiate directly or through attorneys to reach a resolution before filing or during litigation.

These alternatives can provide cost-effective ways to resolve disputes and reduce the financial uncertainty of a breach of contract lawsuit.

Can You Recover Attorney’s Fees in Every Case?

While section 1717 of the California Civil Code permits recovery of attorney’s fees when the contract includes a prevailing party provision, this is not universal. Recovery of attorney’s fees depends on:

  • Contract Language: A clear clause specifying that the losing party must pay attorney’s fees is often required.
  • State Law: Some states follow the "American Rule," where each party pays their own fees unless a contract or statute provides otherwise.
  • Equitable Considerations: Courts sometimes award attorney’s fees as part of equitable relief, such as in cases of bad faith or when a breach caused significant unfairness.

Without such provisions or statutory authority, even a winning party may have to bear their own legal costs, which can influence whether and how to pursue a breach claim.

Frequently Asked Questions

  1. How much does it cost to file a breach of contract lawsuit?
    Costs vary by jurisdiction, but typical expenses include a $300–$400 complaint filing fee, motion fees, and discovery costs. Total expenses can range from a few thousand to tens of thousands of dollars.
  2. Can I sue for emotional distress in a breach of contract case?
    Generally, no. Emotional distress is not typically recoverable in contract claims unless the breach also involves tortious conduct.
  3. What is the average settlement for a breach of contract?
    Settlements vary widely. They can range from a few thousand dollars to millions, depending on the contract’s value, the damages, and each party’s willingness to compromise.
  4. Can attorney’s fees be recovered in small claims court?
    Usually, no—unless the contract includes a fee-shifting clause or state law specifically allows it.
  5. How long does a breach of contract lawsuit take?
    Timelines vary. Some cases settle in a few months, while others can take a year or more if they go to trial.

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