Regardless of what your dispute is, the decision about whether or not to bring a lawsuit should not be taken lightly. There are a number of factors you should take into account before filing a lawsuit.
Firstly, you should look at what you actually stand to gain from the lawsuit. There are many reasons to sue people besides money, but, generally, money is the main reason.
Next, you need to look at the cost of running the lawsuit. This will depend on many factors. Firstly, if you are looking at a small claim issue, the lawsuit will be much less costly to run and much less likely to result in a nasty costs award against you.
In British Columbia, small claims court is generally reserved for matters worth $25,000 or less. The small claims procedures are looser and simpler. It is much easier for an unrepresented litigant to navigate the small claims process. Additionally, although you can still be held responsible for the other sides expenses you cannot usually get a costs award assessed against you (for a more detailed explanation of what “costs” are please see my other posts or contact me).
The other option is the Supreme Court of British Columbia, which is generally reserved for issues of greater than $25,000. In Supreme Court the potential reward are higher, but so are the stakes. If you are unsuccessful in your lawsuit, you could be held accountable not only for the other side’s expenses but also get an award of court costs against you. Additionally, the process in the supreme court is far more complicated and strict and proceeding forward without a lawyer is far less advised.
You not only need to be award of potential costs awards against you for bringing a lawsuit but also your own expenses. Lawyers are not cheap, although they range considerably in costs. Typically, lawyers will charge anywhere from $100-$1000 per billable hour. If you are successful in a Supreme Court action, you may receive your own “costs” award. However, this usually only covers a fraction of the actual legal costs. If your case requires expert evidence (as virtually all personal injury cases do), your expenses can balloon quickly.
In many cases, it may be possible to find a lawyer who is willing to work on contingency. In this arrangement, the lawyer bears much of the risk of running the trial but also will seek a significant portion of whatever you recover as payment.
