Litigation Considerations: Key Factors Every Litigant Should Know
When entering a lawsuit, understanding the main litigation considerations is essential. From costs and recovery to settlement strategies, being prepared helps litigants make informed decisions, manage expectations, and reduce risks. This article highlights the most important factors to keep in mind before and during the litigation process in Ontario.
Understanding Litigation Considerations in Ontario
1. Legal Costs
One of the most significant litigation considerations is the cost of legal action. In Ontario, the general rule is that the losing party must pay a portion of the winning party’s costs. However, recovery of 100% of legal fees is rare.
- The court considers multiple factors when awarding costs.
- Decisions on costs are at the judge’s discretion.
- Even successful litigants usually recover only part of their expenses.
Before starting a lawsuit, carefully weigh your potential costs and your exposure to paying the other side’s fees if unsuccessful.
2. Recoverability
Winning a case does not always mean you will collect payment. A key litigation consideration is whether the opposing party can satisfy a judgment. Without recoverability, even a favorable outcome may feel hollow.
| Scenario | Recoverability Risk |
|---|---|
| Opponent has assets | Higher likelihood of collecting damages or costs |
| Opponent is insolvent | Little or no chance of recovering awarded costs |
3. Time and Stress
Lawsuits are not only expensive but also emotionally demanding. Litigation can take years, especially with backlogs in Ontario courts. During this time, litigants must:
- Make strategic decisions with their lawyer.
- Prepare for examinations and witness management.
- Balance the mental toll of uncertainty.
Understanding this reality early helps manage expectations.
4. Settling is Normal
Another major litigation consideration is settlement. Over 95% of lawsuits in Ontario settle before trial. Settlement discussions typically involve:
- Evaluating risks versus rewards.
- Discussing best and worst-case scenarios.
- Considering the financial and emotional cost of continuing litigation.
Settling provides certainty, avoids ongoing legal fees, and limits risk exposure. While some say “a good settlement leaves everyone unhappy,” it often represents a rational compromise.
Best Practices for Litigants
To navigate litigation effectively, keep these best practices in mind:
- Consistently re-evaluate your case as new facts emerge.
- Understand the potential cost implications at each stage.
- Assess whether recovery is realistic before pursuing litigation.
- Consider the value of early settlement discussions.
FAQs About Litigation Considerations
1. What are the main litigation considerations in Ontario?
The main considerations include legal costs, recoverability of judgments, time and stress involved, and the likelihood of settlement.
2. Will I recover all my legal costs if I win a lawsuit?
No. Even if successful, litigants in Ontario typically recover only a portion of their legal fees as awarded by the court.
3. How long does litigation usually take in Ontario?
Litigation can take years, especially due to court backlogs. Many cases settle before trial to avoid lengthy proceedings.
4. Is settlement better than going to trial?
Settlement often provides certainty, reduces costs, and saves time. While it may feel like a compromise, it is the outcome in most cases.
5. What happens if the other party cannot pay?
If the losing party is insolvent or lacks assets, recovery may be impossible, making it essential to evaluate recoverability before pursuing litigation.
Conclusion
Understanding litigation considerations is vital for any litigant in Ontario. By assessing costs, recovery prospects, time commitments, and settlement options, individuals can make informed decisions that align with both their legal and financial goals. Constantly re-evaluating your position as facts change helps ensure realistic expectations and better outcomes.
