A market summary of the American litigation contract market including cost and scope of contract litigation.

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855-645-8377 linda@litcap.net www.litcapital.net
Contact Litigation Market Snapshot.
A market summary of the American litigation contract market.
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.
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 case1
.
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.
Data from Texas Courts: September 1, 2012 to August 31, 2013
Total Contract Cases: 162,647 Total Tort Cases: 48,480
Total Disposed: 49,071 Total Disposed: 18,087
Source: http://www.courts.state.tx.us/pubs/AR2013/scc/2-ActivityDetail.pdf
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
1
http://www.takejusticeback.com/who-we-are/fact_v_fiction
Additional information and figures about contract litigation can be found here: http://centerjd.org/content/fact-sheet-tort-litigation-united-
states#_ednref4.

2.
855-645-8377 linda@litcap.net www.litcapital.net
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.
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
http://www.courtstatistics.org/~/media/Microsites/Files/CSP/DATA%20PDF/CSPH_online2.ashx

3.
855-645-8377 linda@litcap.net www.litcapital.net
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
https://litcapital.net/ for more information about our product. Please fill out the
membership application form to take the first step in solving your case financing
problems: http://litcapital.net/apply/
About the LitCap Marketplace for Attorney Case Cost Expense Financing for Legal
Capital:
http://www.slideshare.net/bhollandlitcap/litcap-webinar-presentation
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: http://ssrn.com/abstract_id=315759