The courts and trial attorneys have consistently seen a steady increase in the number of contract disputes being litigated in the past decade. The National Center for State Courts (NCSC) completed a study which found monetary disputes created 73% of all civil cases, many involving contract disputes.

trial attorney contract civil litigation case cost expenses

There is a noticeable difference between contract case loads and other areas of civil litigation. In the study conducted by the NCSC, there were 10 times more contract cases than any other civil case .

Texas follows suite with the NCSC study. From September 1, 2012 to August 31, 2013, a total of 162,647 contract cases were on dockets throughout the state, with 49,071 being disposed. Compare these numbers to the amount of tort cases in the State, which were 48,480 in total and 18,087 being disposed. These figures help illustrate to contract attorneys, particularly in Texas, the growing need of financing capabilities to keep up with the increasing caseload. Clearly, in the state of Texas, contract disputes are more common in frequency than tort disputes.

table texas court contract litigation trial expenses

With the vast amount of contract cases being argued in Texas and across the nation, the total cost to litigate can have a draining effect on a law firm’s budget. For example, in Texas, contract cases were disposed of anywhere between less than three months to over 18 months. This wide timeline illustrates how the cost to litigate can have a very negative effect on a law firm. A law firm that has a cash flow problem may not have the ability to wait three to six months, let alone 18 or more, for the judgment of the case. The particular case may also prevent the law firm from engaging in new cases because the firm’s budget will not permit it. The additional case expense is too high and the costs cannot be budgeted until the firm sees a return from the judgments of their present cases (See Figure 2). Consequently, if the law firm loses the case, they will most definitely not be able to recover all of their case expenses.

chart case cost expense financing contract litigation

LitCap solves these problems with law firms. By using the LitCap Marketplace, a lawyer is able to receive financing for his case costs from an investor/lender. Once the attorney becomes a member of LitCap, he is able to place the details of his case on our online platform.

Three major benefits are derived by becoming a member of the LitCap Marketplace. First, the client receives a better trial. With the necessary funds available, the attorney is better able to help argue his client’s case. The attorney can obtain the necessary resources for the best interest of the client. Second, the attorney is able to finance his case. The attorney does not have to be concerned with how he is going to fund case cost expenses. The trouble of dealing with a bank or paying out of his back pocket is no more. The attorney receives the funds and only pays if the judgment is in his favor. Additionally, the attorney does not have to be concerned with the opportunity cost of the next case that comes through the door. Third, LitCap benefits the judicial system. By placing the loan amount in the lawyer’s IOLTA account, the interest gained off the loan can help benefit the legal funds made available for individuals living in poverty.

If you litigate contract cases or other civil cases, please visit our website at for more information about our product. Please fill out the membership application form to take the first step in solving your case financing problems:


Works Cited: Yeazell, Stephen C., Refinancing Civil Litigation. DePaul Law Review, Vol. 51, p. 183, 2001. The University of California, Los Angeles School of Law’s research paper can be downloaded at: