Legal Transparencies
- Diversified Joel

- Jun 26
- 3 min read
Let’s talk about something that not enough people understand until it’s too late: the actual cost of a lawsuit.
It starts innocently enough...you have a dispute. Maybe it’s with a contractor, a business partner, a neighbor, or someone who’s done you wrong. You feel you’ve been treated unfairly and you want to take legal action. You find an attorney, explain your side, and you’re told it’ll be about $5,000 to get started. Seems reasonable, right?
But here’s the problem: that’s just the beginning.
What most people don’t realize, and what many attorneys fail to fully disclose upfront, is that the road to trial is a long and expensive one. And that initial $5,000 is just the cover charge.
Once the legal process begins, costs quickly escalate. Discovery, filings, expert witnesses, depositions, mediation, each step adds thousands more. By the time your case actually reaches trial, you’re likely looking at a total investment of $40,000 to $50,000, if not more. And that’s before the trial itself, which can easily add another $25,000 to the tab.
That is potentially $75,000 out of your pocket, just to get your day in court.
And here's the kicker: there are no guarantees. Even if you win your case, you may not be awarded your attorney's fees. Depending on the case, jurisdiction, and judge, you could walk away with a favorable verdict but still be tens of thousands of dollars in the hole.
On the flip side, if you lose, you might be ordered to pay the other side’s fees, plus interest on any damages awarded. And suddenly, the lawsuit you thought would cost a few grand has turned into a six-figure financial hit.
So Why Isn’t This Made Clear Upfront?
This is where I believe the legal system needs reform, or at the very least, a stronger sense of professional responsibility. I believe attorneys should be obligated to fully disclose the true, potential costs of litigation before a client commits to a lawsuit.
This isn’t about bashing attorneys as from my experience, there are many good ones out there who do try to educate their clients. But too often, in the rush to “fight for justice,” people are encouraged to move forward without fully understanding the financial reality. And that’s not fair to the average person who isn’t familiar with how expensive litigation really is.
People deserve to make informed decisions, especially when those decisions involve tens of thousands of dollars, and the potential for financial hardship. It’s no different than how doctors are required to explain the risks of surgery or how financial advisors must disclose investment risks. Transparency is not only ethical; it’s essential.
What I believe clients Need to Know Before Filing a Lawsuit:
If you’re considering pursuing legal action, here are some key questions you should ask your attorney before signing anything: - What is the estimated total cost of taking this case to trial? - Are any of these costs non-refundable or unrecoverable even if I win? - What are the chances of recovering attorney's fees if I prevail? - What are the financial risks if I lose? - Are there other dispute resolution options (mediation, arbitration) that might be more cost-effective?
Lawsuits aren’t just about being right—they’re about strategy, finances, and risk. And those risks should never be hidden behind a $5,000 retainer.
My final thought: “Knowledge Is Power”.
I’ve been around the block long enough, both in business and in life, to see too many good people drained emotionally and financially by lawsuits they didn’t fully understand. I’m not saying lawsuits aren’t sometimes necessary. But they should be entered into with eyes wide open.
Attorneys, in my opinion, have a professional and ethical duty to help clients truly understand what they’re getting into. Full transparency isn't just good practice. It’s the right thing to do.
If you’re thinking about filing a lawsuit, take the time to educate yourself, ask the hard questions, and consider the big picture. It’s not just about winning the case, it’s about what it could cost you to do so.



